29/07/2014 - 15:27

Potash to farm in on German deposits

29/07/2014 - 15:27

Bookmark

Upgrade your subscription to use this feature.

Potash West has announced it will farm into a historic potash producing region of Germany under a joint venture agreement, with a right to earn 55 per cent if it funds early exploration activities in the South Harz potash district.

Potash to farm in on German deposits
Potash West managing director Patrick McManus.

Potash West has announced it will farm into a historic potash producing region of Germany under a joint venture agreement, with a right to earn 55 per cent if it funds early exploration activities in the South Harz potash district.

The company entered into an agreement with private interests to earn into a joint venture with East Exploration, focused on developing the high-grade potash deposits.

Potash West paid $100,000 to earn 25 per cent of EE, with a further $200,000 to be paid to earn an extra 25 per cent. 

The funds will be used to gain licences and allow the companies to review significant amount of geological data that exists from work carried out at the deposit in previous decades. 

Potash has been mined from the region since 1896, with more than 500 million tonnes extracted, producing more than 100mt of potash fertiliser to date.

“The joint venture has applied for two exploration licence areas, both of which have historical drilling that intersected potash mineralisation over large areas,” Potash West said in a statement.

“Germany is a leading global producer of potash fertiliser.

“These application areas are very well located to service European agricultural markets and serviced by excellent infrastructure and access to other global markets. 

Potash West managing director Patrick McManus said it was a terrific opportunity for the company to expand its global presence.

“This development complements our very large deposit in the Dandaragan Trough in Western Australia,” he said.

“Both local regions are importers of potash and phosphate fertilisers and will benefit from the logistics savings in having production close to the end user.” 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options