One of the few potash aspirants in Western Australia has signalled a shift away from the commodity by buying a gold and base metals exploration project in Queensland.
One of the few potash aspirants in Western Australia has signalled a shift away from the commodity by buying a gold and base metals exploration project in Queensland.
Shares in the West Perth-based junior Trigg Minerals received a boost upon disclosing a move to broaden its portfolio, which currently contains the Lake Throssell sulphate of potash project and two other exploration prospects.
Trigg Minerals told the market on Friday it had entered a binding agreement to buy Rush Resources and its Drummond gold and copper project in Queensland’s Drummond Basin in a scrip deal.
Commenting on Friday’s transaction announcement, Trigg Minerals non-executive chairman Mike Ralston said the company believed it was in the best interest of shareholders to have a more diversified portfolio.
“The transaction has provided a catalyst to raise cash to strengthen Trigg’s balance sheet, both in the short term and following deal completion, which is subject to shareholder approval,” he said.
“I would like to emphasise that Lake Throssell remains high on our priority list and we will continue to develop that asset moving forward.
“We are close to delivering a potentially game-changing technology solution into the wider SOP industry which could revolutionize the entire market here in Western Australia.”
Trigg said it had raised $576,000 via broker GBA Capital and would undertake rights issue in the hopes of raising up to $1.8 million.
The transaction comes against the backdrop of a tough period for Western Australia’s nascent potash industry, with several first movers pulling out of the race.
The most recent of these was in August when Australian Potash, which had been developing the Lake Wells potash project in the northeastern Goldfields before surrendering its mining leases due to what it said had been a lack of investment support in the sector.
A matter of weeks before that was the collapse of Kalium Lakes.
That company had managed to begin production at its flagship but had grappled with myriad technical and supply-related issues before running aground.
McGrathNicol’s restructuring team were appointed receivers to the Balcatta-based business following the appointment of KPMG as administrators.
Salt Lake Potash went into receivership in October 2021 after the business was unable to repay creditors and raise further funds needed for its Lake Way project in the Goldfields.
The project was sold to Sev.en Global Investments in September 2022.
Nedlands-based Agrimin is currently working to make a mine out of its Mackay potash project, located 940 kilometres from Kimberely’s Wyndham Port.
Trigg Minerals, formerly known as Trigg Mining, listed on the ASX in 2019 as part of a wave of new potash players seeking to become producers in the years ahead.
Trigg Minerals shares were up 13.33 per cent to trade at 1.7 cents.
