TIDMSO4
RNS Number : 7341U
Salt Lake Potash Limited
31 July 2020
31 July 2020 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
JUNE 2020 QUARTERLY REPORT
Salt Lake Potash Limited ( SO4 or the Company ) is pleased to
present its Quarterly Report for the period ending 30 June 2020.
The Company is focussed on rapidly developing the Lake Way SOP
Project in Wiluna, Western Australia.
HIGHLIGHTS
On-Lake Construction & Operations
-- Stage 1 & 2 pond networks in operation and precipitating
harvest salts.
-- 45km of brine transfer piping installed and site pumping
capacity >600L/s to support pond operations.
-- Harvest salt and brine chemistry aligning with model. During
the quarter a 277kg bulk sample of harvest salts was taken from the
Stage 1 Kainite Ponds, reporting average potassium grades of 7.5%,
above assumed average plant feed in the BFS of 6.8%.
-- Trench development recommenced in June with total trench
length extended to 48km by the end of the June quarter (from 35km
at end March quarter).
-- Paleochannel borefield development commenced with drilling
and test pumping of brine extraction bores. Four bores were drilled
during the quarter with two test pumped and one test currently
underway. Results confirmed the BFS model for both aquifer
parameters and brine grade.
Process Plant and Non-Process Infrastructure
-- EPC and EPCM contracts for the construction of the Lake Way
processing plant and non-process infrastructure (NPI) were awarded
to GR Engineering Services (ASX:GNG).
-- During the quarter the bulk civil earthworks for the process
plant and non-process infrastructure were completed.
-- Concrete placement is well progressed with more than 50% of
the process plant work complete.
-- Structural steel started arriving on site and erection has
commenced post period end.
-- 100 permanent and 160 temporary rooms constructed at the site
village with associated infrastructure including Communications,
WWTP and RO plant.
-- Project has procured approximately 90% of major vendor
packages with all critical vendor contracts executed.
-- Construction of the process plant continues on schedule
during the June quarter with practical completion and first SOP
production planned for the March quarter 2021.
Corporate & Financial
-- Project debt financing substantially advanced with execution
expected imminently.
-- SO4 was granted 'Green Label' certification for debt issued
to develop the Lake Way Project.
-- In April 2020 the Company raised A$20m in a placement to
existing and new institutional investors.
-- Immediately following period-end the Company raised A$15m via
zero-coupon convertible notes, structured as deferred equity.
-- Matthew Bungey appointed to the board of directors.
Upcoming milestones/activity
-- Finalisation of full project funding.
-- Ongoing delivery of major plant components to site.
-- Process plant and non process infrastructure construction
ramp up.
-- On-lake Stage 3 pond and trench construction activities ramp
up.
-- Paleochannel borefield drilling and pump testing
continues.
on-lake operations
Brine extraction: Trenches
Trench development re-commenced during the quarter with total
trench length extended to 48km by the end of June (from 35km at end
March quarter).
Paleochannel drilling
During the quarter SO4 commenced development of the Lake Way
paleochannel, drilling the first four brine abstraction bores into
the paleochannel basal sands at pads 8, 17, 18 and 21. Two of the
four completed brine abstraction bores have now been test-pumped
(Pad 8 and 17) with the third test currently underway (Pad 21).
Drilling is ongoing with the next tranche of bores being at Pads
12, 14 and 23.
Test pumping at pads 8 and 17 was conducted at flow rates
ranging from 10-18 l/s and with grades observed during testing
ranging from 7,240mg/l to 5,370mg/l.
Table 1 provides a summary of the completed bores (see Appendix
C for further detail).
Drill Bore Name Depth (m) Basal sand Basal Test pumping Average Potassium
Pad intersection Sand Thickness Rate (L/s) Grade During
(mbgl) (m) Pumping (mg/L)
Completed test pumping:
==================== ===========
99
-
8 LYPBB004 114 111 12 10 5,370
95
-
17 LYPPB001 113 113 18 18 7,240
========== =========== ============== ==================== ===========
Drilled but test pumping
not concluded:
88
- not yet
18 LYPBB006 112.5 110 22 tested 6,890*
========== =========== ============== ==================== ===========
92
-
21 LYPZB002 114 111 19 12* 7,260
====== ========== =========== ============== ==================== =========== ==================
Note: *Potassium Grade from Bore LYPBB006 is from an airlift
sample. Test pumping at bore LYPZB002 is ongoing.
Table 1: June Quarter Paleochannel drill programme summary
Separate monitoring bores were drilled adjacent to the brine
abstraction bores at Pads 8 and 17 in both the paleochannel and the
overlying paleovalley clays. Importantly, drawdown was observed in
the monitoring bores during test pumping. Drawdown in both the
basal sand aquifer and overlying clays demonstrates that brine flow
is sourced from lateral flow within the basal sand aquifer as well
as from downward vertical leakage from the overlying paleovalley
clays. This is consistent with modelling assumptions set out in the
BFS. In each case drawdown was also observed at more distant
monitoring bores - in the case of Pad 8 a drawdown was observed in
a monitoring bore on Pad 9 (878 m away), in the case of Pad 17 a
drawdown was observed in a monitoring bore on Pad 21 (1.6km
away).
By matching the measured drawdown curves with modelled drawdown
curves the Company was able to estimate the aquifer parameters and
confirm the continuity of the paleochannel.
In summary, the results from the paleochannel drilling campaign
have validated SO4's BFS model in terms of the location, continuity
and depth of the paleochannel basal sands and brine grades.
Pond operation
The Stage 1 and 2 pond networks both operated at steady state
during the June quarter.
Brine chemistry across the pond network continues to align with
modelled outcomes. During the quarter, a 277kg bulk sample taken
from Kainite Pond 1, Cell C4 was analysed and reported a potassium
grade of 7.5%, ahead of the average modelled harvest salt grade in
the BFS of 6.8%. In some areas of the Stage 1 harvest cells the
salt pavement is now almost 500mm thick.
off-lake operations
Process Plant construction and procurement
Construction of the process plant continued on schedule during
the June quarter with practical completion and first SOP production
targeted for the March quarter 2021.
In June the Company announced it had awarded the EPC and EPCM
contracts for the construction of the Lake Way project to GR
Engineering Services (ASX:GNG)(GRES).
The Engineering, Procurement and Construction (EPC) contract
encompasses the provision of plant, labour, materials and
construction services for the process plant and NPI valued at
A$85m. The Engineering, Procurement and Construction Management
(EPCM) contract encompasses the provision of services for the
engineering, procurement and construction management for areas of
the process plant and NPI, valued at A$22m.
As part of the detailed engineering undertaken since completion
of the Bankable Feasibility Study (BFS) in October 2019, as well as
the negotiated contract risk allocation undertaken with GRES, the
Company agreed a revised capital budget of A$264m for the Lake Way
Project. The revised number is a A$10m increase to the published
BFS capital budget and includes an A$18m contingency allowance.
At the process plant site the Company completed bulk civil
earthworks and commenced pouring concrete foundations during the
quarter.
Procurement advanced significantly during the quarter with the
project now over 90% procured for major packages and all key vendor
contracts executed. The largest procurement package, the process
plant crystalliser, arrived at site in July, weeks ahead of
schedule. Other major plant components including centrifuges,
attritioners, flotation cells, sizing screens, thickeners, rotary
drier, impact crushers, lump breakers and conveyer belts have all
been ordered and will arrive at site during the next two
quarters.
Non-process Infrastructure
At Lake Way Village, construction of 100 permanent and 160
temporary rooms were completed.
Bulk civil earthworks were finalised including pad preparation
for construction of the power plant, warehouse, workshop,
administration and site village, as well as construction of the raw
water pond, runoff settlement ponds and site access roads.
Following the quarter-end the Company commenced erecting NPI
structural steel at the warehouse/workshop and the process plant
site.
At West Creek process water borefield the Company drilled a
total of 7 production bores and 2 monitoring bores, that will
supply the RO Plant (potable water) and water for the process
plant. The production bores have been test-pumped and the steady
state operation pumping philosophy finalised.
Approvals
SO4 continued the advancement of the remaining permitting
required to support full-scale operations with the submission of
the Environmental Review Document (ERD) to the EPA during the
quarter. The EPA has determined that the full project scope
requires formal assessment with no public review. As part of the
EPA submission the Company submitted various surveys, studies,
preliminary plans and assessments.
Surveys conducted as part of the EPA submission included:
-- Flora survey
-- Terrestrial Fauna survey
-- Stygofauna survey of bores within the SO4 Lake Way production
area
-- Shorebird assessment of Lake Way
-- Aquatic Invertebrates survey
-- Short Range Endemic assessment
Studies conducted as part of the submission included:
-- Visual Impact assessment
-- Ground Water modelling
-- H3 Hydrology Assessment for full project brine extraction
-- Flood study modelling
-- Vadoze Zone modelling
-- Salt Dissipation study
-- Greenhouse Gas study
Preliminary plans and assessments completed as part of the
submission included:
-- Mine Closure Plan
-- Stage 3 Environmental Risk Assessment
-- Tecticornia Monitoring and Management Plan
In addition to the EPA submission, the Company continues to seek
other project approvals as required. The key approvals granted or
advanced during the quarter include:
-- Ministerial consent to use the land under section 18 of the
Aboriginal Heritage Act 1972. Land usage includes additional
development as needed to meet ongoing project requirements for the
off lake non process infrastructure including access and
infrastructure corridors, gas pipeline, process water, process
plant and village.
-- Ongoing project approvals for the construction of paleo
channel bores and the associated infrastructure, received from the
Department of Mines, Industry, Regulation and Safety.
-- Submission of the brine extraction licence for on-lake Stage
3 to the Department of Water and Environmental Regulation (the
Company has already obtained the necessary water licences to
extract process water from the West Creek and Southern
borefields).
covid-19 business update
SO4 has continued to monitor Government advice regarding
Covid-19 as it has evolved in order to minimise potential impacts.
A number of restrictions including interaction with the Wiluna
community have now been lifted or eased.
As part of the Company's response to Covid-19, SO4 implemented a
number of efficiencies and cost saving measures to ensure the
ongoing success of the Project. The temporary reduction to Director
fees, executive, management, employee and contractor salaries and
fees was lifted effective 1 July 2020.
exploration
The Company is currently progressing resource development work
at both Lake Marmion and Lake Ballard as part of a strategic review
to determine its next project. During the quarter work focused on
the integration of geophysical data and the development of Leapfrog
models to assist in identifying future drilling targets within the
paleochannel that lies beneath Lakes Ballard and Marmion.
corporate
Debt Financing
In August 2019, SO4 announced that it had mandated Taurus Funds
Management (Taurus or the Lenders), to provide up to US$150m
project financing for the Lake Way Project.
The Stage 1 Funding Facility (Facility) provided initial access
to funding for early construction works at the Lake Way Project and
enabled completion of the BFS prior to drawdown of the main Project
Development Facility (PDF) . The Facility also funded civil works
for the on-lake Stage 2 trenches and evaporation ponds, which with
Stage 1 ponds, will provide the initial harvest salt feed for plant
commissioning.
The Company has made significant progress in finalising the debt
financing that is required to deliver project financial close at
Lake Way. Execution of the final agreement is imminent.
Insitutional Placement
On April 17(th) 2020, the Company raised A$20m at a share price
of A$0.34, placing 58.8 million new ordinary shares with existing
and new institutional investors. As part of the placement SO4
Directors and management subscribed for a total of 3.5 million
shares, including 2,250,000 shares by Chairman, Mr Ian Middlemas
and 505,883 shares by Managing Director and CEO, Mr Tony
Swiericzuk.
Subsequent to the end of the quarter on July 2(nd) 2020, the
Company raised a further A$15m through the placement of unsecured
convertible notes. The notes were structured as deferred equity
with zero coupon and mandatory conversion into equity at the lower
of 45c/share or a 5% discount to any future equity raising of at
least A$10m. The Convertible Note funds have been placed to a
combination of new and existing institutional investors and a new
corporate investor, Equatorial Resources Limited (ASX: EQX).
Funds from both capital raisings enabled the Company to continue
to deliver the Lake Way Project on schedule, with first SOP
production planned in Q1 2021.
R&D Tax Incentive
In July, the Company received an R&D tax incentive payment
of A$3.5m from the Australian Taxation Office in respect of its
research and development activities in the year ended 30 June
2019.
Green Label Certification
SO4 has been granted 'Green' label certification for debt issued
to develop its Lake Way Project. The 'Green' label provides
assurance to all stakeholders of the positive environmental
contribution of solar brine fertiliser production.
The 'Green' loan label is as set out by the LMA and APLMA green
loan principles and eligibility was assessed by DNV GL. As part of
the review, Wood Canada Limited conducted a technical assessment of
greenhouse gas emissions of SOP production at Lake Way, relative to
Mannheim SOP production in other locations. The assessment
concluded that a Mannheim process plant of comparable capacity
would have 60% higher CO(2) emissions than the Lake Way
Project.
Director Appointment
On May 14(th) 2020, the Company announced the appointment of Mr
Matthew Bungey to the board. Matthew is a Chemical Engineer with
over 20 years experience in Natural Resources, most recently as
Managing Director and Head of Mining and Metals with Barclays
Investment Bank in London.
For further information or to view a full version of this
announcement, including diagrams, please visit
https://www.so4.com.au/asx-announcements/ or contact:
Tony Swiericzuk / Richard Knights Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson / Richard Tonthat / Ben Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Roberts
Derrick Lee / Peter Lynch Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220 6939
Rupert Fane / Ernest Bell Hannam & Partners (Joint Broker) Tel: +44 (0) 20 7907 8500
This announcement has been authorised for release by the Board
of Directors.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Appendix A - Competent Person Statement and Disclaimer
Competent Persons Statement
The information in this announcement that relates to Exploration
Results for Lake Way is based on, and fairly represents,
information reviewed by Mr Ben Jeuken, who is a member of the
Australasian Institute of Mining and Metallurgy and a member of the
International Association of Hydrogeologists. Mr Jeuken is employed
by Groundwater Science Pty Ltd, an independent consulting company.
Mr Jeuken has sufficient experience, which is relevant to the style
of mineralisation and type of deposit under consideration and to
the activity, which he is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Jeuken consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
The information in this announcement that relates to Process
Testwork Results is extracted from the announcement entitled '
Harvest Salt Results Report Above Modelled Potassium Grades' dated
28 May 2020 . This announcement is available to view on
www.so4.com.au. The information in the original ASX Announcement
that related to Process Testwork Results was based on, and fairly
represents, information provided by Mr Bryn Jones, BAppSc (Chem),
MEng (Mining) who is a Fellow of the Australasian Institute of
Mining and Metallurgy. Mr Jones is a holder of shares and
performance rights in, and is a Director of, Salt Lake Potash
Limited. Mr Jones has sufficient experience, which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking, to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Salt Lake Potash Limited confirms that
it is not aware of any new information or data that materially
affects the information included in the original market
announcement. Salt Lake Potash Limited confirms that the form and
context in which the Competent Person's findings are presented have
not been materially modified from the original market
announcement.
Forward Looking Statements
This announcement may include forward-looking statements. These
forward-looking statements are based on Salt Lake Potash Limited's
expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Salt Lake
Potash Limited, which could cause actual results to differ
materially from such statements. Salt Lake Potash Limited makes no
undertaking to subsequently update or revise the forward-looking
statements made in this announcement, to reflect the circumstances
or events after the date of that announcement.
Appendix B - disclosures in accordance with asx listing rule
5.3
Summary of Mining Tenements
Western Australia
==================== ============== ============= ========== ====== =====
Lake Way
==================== ============== ============= ========== ====== =====
Central Granted - E53/1878 100% 100%
==================== ============== ============= ========== ====== =====
East Granted - E53/2057 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E53/1897 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E53/2059 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E53/2060 100% 100%
==================== ============== ============= ========== ====== =====
West Application - L53/208 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - M53/1102 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - M53/1103 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - M53/1104 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - M53/1105 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - M53/1106 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - M53/1107 100% 100%
==================== ============== ============= ========== ====== =====
East Application Application M53/1109 - 100%
==================== ============== ============= ========== ====== =====
Central Granted - E53/1862 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - E53/1863 100% 100%
==================== ============== ============= ========== ====== =====
North Application - E53/1905 100% 100%
==================== ============== ============= ========== ====== =====
North Application - E53/1952 100% 100%
==================== ============== ============= ========== ====== =====
West Application - E53/1966 100% 100%
==================== ============== ============= ========== ====== =====
North Application - E53/2049 100% 100%
==================== ============== ============= ========== ====== =====
North Granted - P53/1642 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - P53/1643 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - P53/1644 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - P53/1645 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - P53/1666 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - P53/1667 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - P53/1668 100% 100%
==================== ============== ============= ========== ====== =====
North Granted - M53/121 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - M53/122 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - M53/123 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - M53/147 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - M53/253 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - M53/796 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - M53/797 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - M53/798 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - M53/910 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - L53/51 100% 100%
==================== ============== ============= ========== ====== =====
West Application - L53/207 100% 100%
==================== ============== ============= ========== ====== =====
West Granted Granted L53/211 - 100%
==================== ============== ============= ========== ====== =====
North Granted Granted L53/212 - 100%
==================== ============== ============= ========== ====== =====
-
West Application - L53/214 100% 100%
==================== ============== ============= ========== ====== =====
West Application - L53/215 100% 100%
==================== ============== ============= ========== ====== =====
North Application - L53/216 100% 100%
==================== ============== ============= ========== ====== =====
West Application - L53/217 100% 100%
==================== ============== ============= ========== ====== =====
West Granted Granted L53/218 - 100%
==================== ============== ============= ========== ====== =====
West Application - L53/210 100% 100%
==================== ============== ============= ========== ====== =====
West Application - L53/219 100% 100%
==================== ============== ============= ========== ====== =====
South Application L53/225 100%^ 100%
==================== ============================= ========= ====== =====
West Application L53/226 100% 100%
==================== ============================= ========= ====== =====
West Application L53/228 100% 100%
==================== ============================= ========= ====== =====
West Granted - G53/24 100% 100%
==================== ============== ============= ========== ====== =====
West Application - G53/25 100% 100%
==================== ============== ============= ========== ====== =====
Lake Wells
==================== ============== ============= ========== ====== =====
Central Granted - E38/2710 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E38/2821 100% 100%
==================== ============== ============= ========== ====== =====
North Granted - E38/2824 100% 100%
==================== ============== ============= ========== ====== =====
Outer East Granted - E38/3055 100% 100%
==================== ============== ============= ========== ====== =====
Single Block Granted - E38/3056 100% 100%
==================== ============== ============= ========== ====== =====
Outer West Granted - E38/3057 100% 100%
==================== ============== ============= ========== ====== =====
North West Granted - E38/3124 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - L38/262 100% 100%
==================== ============== ============= ========== ====== =====
East Granted - L38/263 100% 100%
==================== ============== ============= ========== ====== =====
South West Granted - L38/264 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - L38/287 100% 100%
==================== ============== ============= ========== ====== =====
South Western Granted - E38/3247 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - M38/1278 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - E38/3380 100% 100%
==================== ============== ============= ========== ====== =====
North Application - E38/3469 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - E38/3470 100% 100%
==================== ============== ============= ========== ====== =====
Lake Ballard
==================== ============== ============= ========== ====== =====
West Granted - E29/912 100% 100%
==================== ============== ============= ========== ====== =====
East Granted - E29/913 100% 100%
==================== ============== ============= ========== ====== =====
North Granted - E29/948 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E29/958 100% 100%
==================== ============== ============= ========== ====== =====
South East Granted - E29/1011 100% 100%
==================== ============== ============= ========== ====== =====
South East Granted - E29/1020 100% 100%
==================== ============== ============= ========== ====== =====
South East Granted - E29/1021 100% 100%
==================== ============== ============= ========== ====== =====
South East Granted - E29/1022 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E29/1067 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E29/1068 100% 100%
==================== ============== ============= ========== ====== =====
East Granted Granted E29/1069 - 100%
==================== ============== ============= ========== ====== =====
North Granted - E29/1070 100% 100%
==================== ============== ============= ========== ====== =====
Lake Irwin
==================== ============== ============= ========== ====== =====
West Granted - E37/1233 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - E39/1892 100% 100%
==================== ============== ============= ========== ====== =====
East Granted - E38/3087 100% 100%
==================== ============== ============= ========== ====== =====
North Granted - E37/1261 100% 100%
==================== ============== ============= ========== ====== =====
Central East Granted - E38/3113 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E39/1955 100% 100%
==================== ============== ============= ========== ====== =====
North West Granted - E37/1260 100% 100%
==================== ============== ============= ========== ====== =====
South West Granted - E39/1956 100% 100%
==================== ============== ============= ========== ====== =====
Lake Minigwal
==================== ============== ============= ========== ====== =====
West Granted - E39/1893 100% 100%
==================== ============== ============= ========== ====== =====
East Granted - E39/1894 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - E39/1962 100% 100%
==================== ============== ============= ========== ====== =====
Central East Granted - E39/1963 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E39/1964 100% 100%
==================== ============== ============= ========== ====== =====
South West Granted - E39/1965 100% 100%
==================== ============== ============= ========== ====== =====
Lake Marmion
==================== ============== ============= ========== ====== =====
North Granted - E29/1000 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - E29/1001 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E29/1002 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - E29/1005 100% 100%
==================== ============== ============= ========== ====== =====
West Application - E29/1069 100% 100%
==================== ============== ============= ========== ====== =====
Lake Noondie
==================== ============== ============= ========== ====== =====
North Granted - E57/1062 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - E57/1063 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E57/1064 100% 100%
==================== ============== ============= ========== ====== =====
West Granted - E57/1065 100% 100%
==================== ============== ============= ========== ====== =====
East Granted - E36/932 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - E36/984 100% 100%
==================== ============== ============= ========== ====== =====
Central Application - E36/985 100% 100%
==================== ============== ============= ========== ====== =====
Lake Barlee
==================== ============== ============= ========== ====== =====
North Granted - E30/495 100% 100%
==================== ============== ============= ========== ====== =====
Central Granted - E30/496 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E77/2441 100% 100%
==================== ============== ============= ========== ====== =====
Lake Raeside
==================== ============== ============= ========== ====== =====
North Granted - E37/1305 100% 100%
==================== ============== ============= ========== ====== =====
Lake Austin
==================== ============== ============= ========== ====== =====
North Application - E21/205 100% 100%
==================== ============== ============= ========== ====== =====
West Application - E21/206 100% 100%
==================== ============== ============= ========== ====== =====
East Granted - E58/529 100% 100%
==================== ============== ============= ========== ====== =====
South Granted - E58/530 100% 100%
==================== ============== ============= ========== ====== =====
South West Granted - E58/531 100% 100%
==================== ============== ============= ========== ====== =====
Lake Moore
==================== ============== ============= ========== ====== =====
Central Relinquished - E59/2344 100% -
==================== ============== ============= ========== ====== =====
Northern Territory
==================== ============== ============= ========== ====== =====
Lake Lewis
==================== ============== ============= ========== ====== =====
South Granted - EL 29787 100% 100%
==================== ============== ============= ========== ====== =====
North Granted - EL 29903 100% 100%
==================== ============== ============= ========== ====== =====
Related Party Payments
During the quarter ended 30 June 2020, the Company made payments
of $21,000 to related parties and their associates. These payments
relate to existing remuneration arrangements (executive salaries
and superannuation).
Appendix C - Paleochannel drilling Summary
Constant
rate
test
Total Basal pumping
Drilled Geological Basal sand Sand Airlift Potassium flow Observed
Drill Depth Unit intersection Thickness Yield Concentration rate Drawdown
Pad Bore Name Easting Northing (m) Screened (mbgl) (m) (L/s) (mg/L) (L/s) (m)
------ ---------- ----------- ------------ -------- ------------- ------------- ---------- -------- -------------- --------- ---------
Paleochannel
8 LYPBB004 251750.856 7028285.591 114 Basal Sand 99 - 111 12 22.6 5,630 10 15.79
Paleochannel
8 LYPZB004a 251756.889 7028272.859 114 Basal Sand 99 - 111 12 17 5,340 10.93
Paleochannel
8 LYPZB004c 251749.212 7028295.219 71 Clay 4,600 n/a
Paleochannel
8 LYPZB004b 251746.101 7028294.044 47 Clay 4,100 0.05
Paleochannel
9 LYPZP003a 251082.502 7028856.555 97 Basal Sand 74 - 95 21 5390
Paleochannel
Basal Sand
Paleochannel
17 LYPPB001 239815.477 7040118.794 113 Basal Sand 95 - 113 18 35 7,240 17.7 26.44
Paleochannel
17 LYPZB001a 239807.198 7040112.502 115 Basal Sand 95 - 113 18 12 7,260 21.45
Paleochannel
17 LYPZB001b 239810.761 7040121.82 72 Clay 6,890 6.8
Paleochannel
18 LYPZB006a 238340.229 7042468.541 112 Basal Sand 88 - 110 22 10 6,960
Paleochannel
18 LYPZB006b 238341 7042441 112.5 Basal Sand 88 - 110 22 10 6,890
Paleochannel
18 LYPBB006 238768 7041324 64 Clay 6,300
Paleochannel
21 LYPBB002 238759.272 7041333.307 114 Basal Sand 92 - 111 19 16 7,230
Paleochannel
21 LYPZB002a 238769.49 7041332.51 108 Basal Sand 92 - 111 19 7,200
Paleochannel
21 LYPZB002b 238779.725 7041335.349 68 Clay 6,320 12
------ ---------- ----------- ------------ -------- ------------- ------------- ---------- -------- -------------- --------- ---------
Note: Drilled depth equates to end of hole and all holes are
vertical. LYPBB denotes pumping bore. LYPZB denotes piezometer.
Estimated acquifer parameters
Pumping test data was analysed by calibrating a model of the
paleochannel sand aquifer to the water level drawdown data measured
at observation bores during the pumping tests. Model calibration
was performed by manually varying model parameters until a best
match was achieved between predicted and observed water levels.
The following parameters were varied during the estimation
process:
-- Horizontal hydraulic conductivity (Kh) and Specific Storage
(Ss) of the paleochannel sand; and
-- Vertical hydraulic conductivity (Kv) and Specific Storage (Ss) of the overlying clay.
The calibrated parameters for both Pads 8 and 17 are presented
in Tables A1 and A2, and the match between predicted and observed
water levels are shown in the Figures available in the full version
of this announcement .
Table A1: Pad 8 Estimated Aquifer Parameters
Paleochannel Sand Paleovalley Clay
Parameter Value Parameter Value
----------- ----------- ---------- -----------
Kh (m/d) 5.5 Kv (m/d) 0.0001
Ss (m/m) 1.7x10(-5) Ss (m/m) 2.8x10(-5)
Table A2: Pad 17 Estimated Aquifer Parameters
Paleochannel Sand Paleovalley Clay
Parameter Value Parameter Value
----------- ----------- ---------- -----------
Kh (m/d) 5.9 Kv (m/d) 0.0004
Ss (m/m) 1.7x10(-5) Ss (m/m) 1.1x10(-5)
APPIX D - JORC CODE, 2012 EDITION - TABLE 1
Section 1 - Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques Drill cuttings were
* Nature and quality of sampling (e.g. cut channels, sampled every 2m. The mud
random chips, or specific specialised industry rotary method used means
standard measurement tools appropriate to the that the samples are
minerals under investigation, such as downhole gamma only considered
sondes, or handheld XRF instruments, etc.). These representative of the
examples should not be taken as limiting the broad geology which is
meaning of sampling. sufficient for the
purposes of planning
the construction of the
* Include reference to measures taken to ensure sample brine pumping bore in
presentively and the appropriate calibration of any this instance.
measurement tools or systems used.
A brine sample and
duplicate were taken from
* Aspects of the determination of mineralisation that every bore after
are Material to the Public Report. development. Brine
samples and
duplicates were taken
* In cases where 'industry standard' work has been done, from the pumping bore at
this would be relatively simple (e.g. 'reverse 1 hour after pumping
circulation drilling was used to obtain 1 m samples commenced, 24 hours after
from which 3 kg was pulverised to produce a 30 g pumping commenced and
charge for fire assay'). In other cases, more every 24 hours for the
explanation may be required, such as where there is remainder of the test
coarse gold that has inherent sampling problems. duration.
Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed Samples were taken
information. manually from a sampling
valve on the side of the
pump headworks. Prior
to taking the sample the
bottle was rinsed with
brine from the pumping
bore.
Samples were analysed for
K, Mg, Ca, Na, Cl, SO(4)
, HCO(3) , NO(3) , pH,
TDS and specific
gravity.
Test pumping entailed
pumping from between 80
and 90m below ground
level depending on the
bore (4m above the top of
the screens) using a
submersible electric
pump.
Water levels in the
pumping bore and
monitoring bores were
measured manually and by
pressure
transducers with
barometric pressure and
brine density correction.
------------------------------------------------------------- --------------------------
Drilling techniques Mud rotary drilling was
* Drill type (e.g. core, reverse circulation, open-hole used in all cases. The
hammer, rotary air blast, auger, Bangka, sonic, etc.) pumping bores at Pads 8,
and details (e.g. core diameter, triple or standard 17, 21 and 18 were
tube, depth of diamond tails, face-sampling bit or drilled to 113m, 114m,
other type, whether core is oriented and if so, by 114m and 112.5m
what method, etc.). respectivly at 15"
diameter and completed
with 10"
PVC casing and wire wrap
screens, 18m of screen
was placed in the Pad 18
bore from 94m to
112m, Pad 17 bore from
94.5mbgl to 112.5mbgl and
Pad 21 bore from 93 -
111mbgl, at Pad 18
the pumping bore was
completed with 24m of
screen from 88m - 112m.
In all pumping bores the
annulus was gravel packed
with 1.6 - 3.2mm washed
gravel from total
depth to 10m above the
screens then a 10m cement
plug was installed from
and the bore backfilled
with gravel to surface
where a 6m sanitary
cement seal was emplaced.
The deep monitoring bore
Pad 17 was drilled to
115m, at a diameter of 9
7/8" and cased with
6" slotted at the base
and blank PVC, the bore
was gravel packed to the
surface using 1.6
- 3.2mm washed gravel. A
6m sanitary cement seal
was emplaced at the
surface.
The deep monitoring bores
at Pads 8, and 18 were
drilled to 114m and 112m
respectively at
a diameter of 9 7/8" and
cased with 6" slotted at
the base and blank PVC,
the bores were gravel
packed using 1.6 - 3.2mm
washed gravel to 10m
above the screen and a
10m cement plug installed
prior to being gravel
packed to surfaece. A 6m
sanitary cement seal was
emplaced at the surface.
The deep monitoring bore
at Pad 21 was drilled to
108m at a diameter of 6"
and cased with
50mm slotted at the base
and blank PVC, the bore
was gravel packed using
1.6 - 3.2mm washed
gravel to 10m above the
screen and a 10m cement
plug installed prior to
being gravel packed
to surface. A 6m sanitary
cement seal was emplaced
at the surface.
The clay monitoring bores
were all drilled at a
diameter of 6" and cased
with 6m of slotted
50mm PVC at the base and
blank 50mm PVC to the
surface. The bores were
gravel packed with
1.6 - 3.2mm washed gravel
and a neat 10m cement
seal with 5% bentonite
was installed via tremmie
5m above the 6m slotted
PVC section. A 6m
sanitary cement seal was
emplaced at the surface
in all cases.
Two clay bores were
installed at Pad 8 to
depth of 70m and 50m
respectively, One clay
bore
was installed at Pad 17
to a depth of 72m, one at
Pad 21 to 68m and one at
18 to 64m.
All bores were developed
using airlift techniques
including surging until
the discharge was
clear of drill muds and
sand .
------------------------------------------------------------- --------------------------
Drill sample recovery Drill cutting were
* Method of recording and assessing core and chip collected at the top of
sample recoveries and results assessed. the hole using a sieve
every 2m. Chip trays were
also completed for future
* Measures taken to maximise sample recovery and ensure reference.
representative nature of the samples.
The sample provides an
indication of the
* Whether a relationship exists between sample recovery lithology only. There is
and grade and whether sample bias may have occurred not a relationship
due to preferential loss/gain of fine/coarse between
material. the lithology and brine
grade.
Flow and grade cannot be
sampled during drilling
when the mud rotary
method is used.
------------------------------------------------------------- --------------------------
Logging The geological logging is
* Whether core and chip samples have been geologically sufficient for the
and geotechnically logged to a level of detail to purposes of identifying
support appropriate Mineral Resource estimation, variations in sand/ clay
mining studies and metallurgical studies. and silt fraction within
the paleochannel
lithology.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc.) photography. For a brine abstraction
project, the key
parameters are the
* The total length and percentage of the relevant hydraulic conductivity
intersections logged. and storativity
of the host rock, which
will be determined during
test pumping of the
bores.
The logging is
qualitative.
The entire bore depth was
logged in every case.
------------------------------------------------------------- --------------------------
Sub-sampling techniques Not applicable, mud
and sample preparation * If core, whether cut or sawn and whether quarter, rotary drilling.
half or all core taken.
Not applicable, cutting
sampled at the borehead
* If non-core, whether riffled, tube sampled, rotary only.
split, etc. and whether sampled wet or dry.
The brine samples were
taken after airlift
* For all sample types, the nature, quality and development when each
appropriateness of the sample preparation technique. bore was clear of
drilling
mud and residual sand.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of Brine samples and
samples. duplicates were taken
during the test pumping
at approximately 11am
* Measures taken to ensure that the sampling is each
representative of the insitu material collected, day of the test pump in
including for instance results for field order to identify any
duplicate/second-half sampling. variation in brine grade
during the test pump
duration.
* Whether sample sizes are appropriate to the grain
size of the material being sampled. All the samples taken
were incorporated into a
rigorous QA / QC program
in which Standards
and Duplicates were
taken. The samples were
taken in sterile plastic
bottles of 125ml or 250ml
capacity. The samples
were labelled with the
alphanumeric code Y20001,
Y80002 ...etc.
------------------------------------------------------------- --------------------------
Quality of assay data and The brine samples were
laboratory tests * The nature, quality and appropriateness of the sent to Bureau Veritas
assaying and laboratory procedures used and whether Laboratories in Perth, WA
the technique is considered partial or total. with the duplicates
being held by SO4. Every
10th duplicate was sent
* For geophysical tools, spectrometers, handheld XRF to Intertek, an alternate
instruments, etc., the parameters used in determining laboratory for
the analysis including instrument make and model, comparison purposes.
reading times, calibrations factors applied and their
derivation, etc. No analysis was
undertaken with
geophysical tools.
* Nature of quality control procedures adopted (e.g.
standards, blanks, duplicates, external laboratory QA/ QC procedures are
checks) and whether acceptable levels of accuracy considered acceptable for
(i.e. lack of bias) and precision have been this type exploration and
established. sampling.
Samples and their
duplicates have been
compared for their
relative difference form
the mean
and the individual charge
balance.
------------------------------------------------------------- --------------------------
Verification of sampling Not applicable for brine
and assaying * The verification of significant intersections by sampling.
either independent or alternative company personnel.
Not applicable, however
monitoring bores have
* The use of twinned holes. been drilled to measure
changes in water levels
during test pumping.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and All sampling and assaying
electronic) protocols. is well documented and
contained on SO4's
internal database.
* Discuss any adjustment to assay data.
No adjustments have been
made to assay data.
------------------------------------------------------------- --------------------------
Location of data points All bore locations and
* Accuracy and quality of surveys used to locate drill heights have been
holes (collar and down-hole surveys), trenches, mine surveyed by a qualified
workings and other locations used in Mineral Resource surveyor, the coordinates
estimation. are considered accurate
to +/- 20mm. The surveyed
heights was measured at
* Specification of the grid system used. the ground surface
and at the top of casing
and are considred
* Quality and adequacy of topographic control. accurate to +/1 50mm,
these variations are
considered
sufficient for this
application.
The grid system is the
Australian National Grid
Zone MGA 51 (GDA 94).
There is no specific
topographic control as
the depth of the hole is
determined by the
intersection
of the target horizon and
the end of the hole by
the basement contact.
------------------------------------------------------------- --------------------------
Data spacing and The results provided
distribution * Data spacing for reporting of Exploration Results. represent a single point
at each bore.
* Whether the data spacing and distribution is Sample compositing not
sufficient to establish the degree of geological and applicable .
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied.
* Whether sample compositing has been applied.
------------------------------------------------------------- --------------------------
Orientation of data in The target aquifers are
relation to geological * Whether the orientation of sampling achieves unbiased contained within
structure sampling of possible structures and the extent to paleovalleys incised into
which this is known, considering the deposit type. the granitic or
greenstone
basement. There are no
* If the relationship between the drilling orientation structural controls that
and the orientation of key mineralised structures is impact brine flow within
considered to have introduced a sampling bias, this the basal sand aquifer.
should be assessed and reported if material.
Geological influence on
the brine is limited to
the aquifer parameters of
the host rock, namely
the hydraulic
conductivity, total
porosity and storativity.
------------------------------------------------------------- --------------------------
Sample security SO4 field hydrogeologists
* The measures taken to ensure sample security. were responsible for
collecting, labelling and
recording brine samples
prior to shipping to the
BV lab and the SO4
offices in Perth. The
security measures for the
material and type of
sampling at hand was
appropriate.
------------------------------------------------------------- --------------------------
Audits or reviews No audits or reviews of
* The results of any audits or reviews of sampling sampling techniques and
techniques and data. data have been
undertaken.
------------------------------------------------------------- --------------------------
Section 2 - Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land Bore Pads 17, 21 and 8 are
tenure status * Type, reference name/number, location and ownership on E53/1878. Bore Pad 18
including agreements or material issues with third is on E53/2057.
parties such as joint ventures, partnerships,
overriding royalties, native title interests, All tenure is granted to
historical sites, wilderness or national park and Piper Preston Pty Ltd, a
environmental settings. wholly owned subsidiary of
Salt Lake Potash
Limited.
* The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
------------------------------------------------------------ ---------------------------
Exploration done by other There has been significant
parties * Acknowledgment and appraisal of exploration by other mineral exploration on and
parties. around Lake Way. The
primary source
for the information is the
publicly available Western
Australian Mineral
Exploration (WAMEX)
report data base.
Some bores drilled by WMC
in 1992 for the Mt Keith
mine water supply have
proved useful in
determining paleochannel
grade and aquifer
parameters.
The data has been shown to
be useful in the
determination of the top
of the paleochannel basal
sand and for the
calibration of the passive
seismic data.
------------------------------------------------------------ ---------------------------
Geology The deposit is a
* Deposit type, geological setting and style of paleochannel brine deposit
mineralisation. lying beneath the eastern
shore of Lake Way.
The lake and paleochannel
setting is typical of a
Western Australian
palaeovalley environment.
Ancient hydrological
systems have incised
palaeovalleys into
Archaean basement rocks,
which
were then infilled by
Tertiary-aged sediments
typically comprising a
coarse-grained fluvial
basal sand overlaid by
palaeovalley clay with
some coarser grained
interbeds. The clay is
overlaid by recent
Cainozoic material
including lacustrine
sediment, calcrete,
evaporite and
aeolian deposits.
------------------------------------------------------------ ---------------------------
Drill hole Information Bore coordinates and
* A summary of all information material to the elevations were located by
understanding of the exploration results including a surveyor which is
tabulation of the following information for all sufficient for this type
Material drill holes: of exploration activity.
All bores are vertical.
* easting and northing of the drill hole collar
Total drilled depths,
basal sand interceptions
* elevation or RL (Reduced Level - elevation above sea and screened intervals are
level in metres) of the drill hole collar included in a table
in Appendix C for the
abstraction bores and deep
* dip and azimuth of the hole monitoring bores. The
screened interval is
also stated for the clay
* downhole length and interception depth monitoring bores.
No information related to
* hole length. the drilling and test
pumping of the bores has
been excluded.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
------------------------------------------------------------ ---------------------------
Data aggregation methods No cut off grade is
* In reporting Exploration Results, weighting averaging stated.
techniques, maximum and/or minimum grade truncations
(e.g. cutting of high grades) and cut-off grades are No data aggregation has
usually Material and should be stated. been undertaken.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
------------------------------------------------------------ ---------------------------
Relationship between The chemical analysis from
mineralisation widths and * These relationships are particularly important in the the test pumping has shown
intercept lengths reporting of Exploration Results. the that the brine
resource is consistent
and continuous within the
* If the geometry of the mineralisation with respect to section of paleochannel
the drill hole angle is known, its nature should be between Pads 18 and 21 and
reported. between Pads
8 and historic bore 3_4.
The unit is flat lying and
* If it is not known and only the downhole lengths are the intersected thickness
reported, there should be a clear statement to this of the basal
effect (e.g. 'down hole length, true width not sands is equivalent to the
known'). vertical depth and the
thickness of
mineralisation.
------------------------------------------------------------ ---------------------------
Diagrams All location maps are
* Appropriate maps and sections (with scales) and contained within the body
tabulations of intercepts should be included for any of the ASX version of this
significant discovery being reported These should report, in this
include, but not be limited to a plan view of drill instance no sections are
hole collar locations and appropriate sectional provided although a
views. typical cross section of
the paleochannel has
been previously reported.
The intercept of the basal
sands has been provided in
the table
contained within Appendix
C.
------------------------------------------------------------ ---------------------------
Balanced reporting A summary of the brine
* Where comprehensive reporting of all Exploration grade results is
Results is not practicable, representative reporting included in the report
of both low and high grades and/or widths should be and in Appendix C.
practiced to avoid misleading reporting of
Exploration Results.
------------------------------------------------------------ ---------------------------
Other substantive All material exploration
exploration data * Other exploration data, if meaningful and material, data has been reported.
should be reported including (but not limited to):
geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
------------------------------------------------------------ ---------------------------
Further work The drilling
* The nature and scale of planned further work (e.g. programme is
tests for lateral extensions or depth extensions or ongoing with
large-scale step-out drilling). Pads at
locations 12,
14 and 23
* Diagrams clearly highlighting the areas of possible planned to be
extensions, including the main geological drilled
interpretations and future drilling areas, provided in the next
this information is not commercially sensitive. quarter as well
as the
commencement of
onlake deep
drilling, the
locations for
the on lake
bores is still
being
determined.
Once drilled
all pumping
bores will be
test pumped.
All approved
off lake
locations are
shown on maps
included in the
report.
------------------------------------------------------------ ---------------------------
APPIX E - APPIX 5B
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
----------------------------------------------------------------------------------------------
Salt Lake Potash Limited
ABN Quarter ended ("current quarter")
--------------------------------------------------- ------------------------------------
98 117 085 748 30 June 2020
------------------------------------
Consolidated statement of cash Current quarter Year to date
flows (12 months)
$A'000 $A'000
------------------
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (2,170) (32,559)
(b) development - -
(c) production - -
(d) staff costs (1,147) (7,297)
(e) administration and corporate
costs (113) (1,971)
1.3 Dividends received (see note - -
3)
1.4 Interest received 19 167
Interest and other costs of
1.5 finance paid - (980)
1.6 Income taxes paid - -
Government grants and tax
1.7 incentives 170 1,082
Other (provide details if
1.8 material)
- Business Development (520) (3,043)
- Security Deposits - (76)
------------------ ----------------
Net cash from / (used in)
1.9 operating activities (3,761) (44,677)
----------------- ------------------------------------- ------------------ ----------------
2. Cash flows from investing
activities
Payments to acquire or for:
(a) entities - -
(b) tenements - (10,000)
(c) property, plant and equipment (781) (2,410)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets
- Mine Properties in development (24,875) (67,192)
2.2 Proceeds from the disposal
of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - 35
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other - -
entities
2.4 Dividends received (see note - -
3)
2.5 Other (provide details if - -
material)
------------------ ----------------
Net cash from / (used in)
2.6 investing activities (25,656) (79,567)
----------------- ------------------------------------- ------------------ ----------------
3. Cash flows from financing
activities
Proceeds from issues of equity
securities (excluding convertible
3.1 debt securities) 20,000 50,891
3.2 Proceeds from issue of convertible - -
debt securities
3.3 Proceeds from exercise of - -
options
Transaction costs related
to issues of equity securities
3.4 or convertible debt securities (800) (1,782)
3.5 Proceeds from borrowings - 66,600
3.6 Repayment of borrowings (117) (355)
Transaction costs related
3.7 to loans and borrowings - (3,080)
3.8 Dividends paid - -
3.9 Other (provide details if - -
material)
------------------ ----------------
Net cash from / (used in)
3.10 financing activities 19,083 112,274
----------------- ------------------------------------- ------------------ ----------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 17,310 19,304
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (3,761) (44,677)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (25,656) (79,567)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) 19,083 112,274
Effect of movement in exchange
4.5 rates on cash held 27 (331)
Cash and cash equivalents
4.6 at end of period 7,003 7,003
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 6,953 17,310
5.2 Call deposits 50 -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 7,003 17,310
----------------- ----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 (21)
----------------
6.2 Aggregate amount of payments to related -
parties and their associates included in
item 2
----------------
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly
activity report must include a description of, and an explanation
for, such payments.
7. Financing facilities Total facility Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end $A'000
arrangements available to $A'000
the entity. Add notes as necessary
for an understanding of the
sources of finance available
to the entity.
7.1 Loan facilities 65,569 65,569
------------------- ----------------
7.2 Credit standby arrangements - -
------------------- ----------------
7.3 Other (please specify) - -
------------------- ----------------
7.4 Total financing facilities 65,569 65,569
------------------- ----------------
7.5 Unused financing facilities available at -
quarter end
----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
----------------- ---------------------------------------------------------------------------
The Company has mandated Taurus Funds Management (as manager
of the Taurus Mining Finance Fund L.P., Taurus Mining
Finance Annex Fund L.P. and Taurus Mining Finance Fund
No. 2 L.P.) to provide up to US$150m project financing
for the Lake Way Project.
The Stage 1 Facility was extended from US$30 million to
US$45 million as announced to the market on 6 December
2020 and has been fully drawn down. The facility is secured
and interest is payable at 9.75% pa.
The Project Development Facility (PDF) will be used to
refinancing the Stage 1 Facility and for project development
and working capital associated with the development of
the Lake Way Project. Draw down of the PDF will be subject
to a number of Conditions Precedent, The PDF will be secured
and interest will be payable at 9.00% pa.
As the loan is denominated in USD, the facility amount
and amount drawn down has been converted at an FX rate
of $0.6863 USD/AUD, being the FX cross rate at 30 June
2020.
-----------------
8. Estimated cash available for future operating $A'000
activities
Net cash from / (used in) operating activities
8.1 (item 1.9) (3,761)
8.2 (Payments for exploration & evaluation classified -
as investing activities) (item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item (3,761)
8.2)
8.4 Cash and cash equivalents at quarter end 7,003
(item 4.6)
8.5 Unused finance facilities available at quarter -
end (item 7.5)
--------
8.6 Total available funding (item 8.4 + item 7,003
8.5)
--------
Estimated quarters of funding available
8.7 (item 8.6 divided by item 8.3) 1.86
--------
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters
of funding available must be included in item 8.7.
8.8 If item 8.7 is less than 2 quarters, please provide answers
to the following questions:
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for
the time being and, if not, why not?
-------------------------------------------------------------------
Answer: The Company expects to have similar levels of
total net operating and investing cash flows for the current
quarter.
-------------------------------------------------------------------
8.8.2 Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
-------------------------------------------------------------------
Answer: Yes. In July 2020, the Company placed A$15m in
zero coupon Convertible Notes to enable it to continue
to deliver the Lake Way Project to schedule. The Company
continues to work closely with Taurus to complete the
PDF documentation, derisk the Project and satisfy the
conditions precedent to the PDF (refer 7.6 above). The
Company expects to provide an update to the market on
funding to complete the Project in accordance with the
schedule in the near future.
-------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and, if
so, on what basis?
-------------------------------------------------------------------
Answer: Yes. Further to the responses above, the Company
has a reasonable expectation that it will complete project
funding in the near future. The Company has an existing
mandate with Taurus to provide staged project financing
(refer 7.6 above). Negotiations with Taurus on the PDF
have entered the final stage and satisfaction of conditions
precedent are substantially advanced, which will allow
completion of the Project in accordance with schedule.
As evidenced by the recent placements, the Company has
a strong institutional shareholder base and support for
the Project remains strong. The Company is actively managing
its cash and commitments to ensure that it can continue
its operations and to meet its business objectives of
constructing the Lake Way Project.
-------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of questions
8.8.1, 8.8.2 and 8.8.3 above must be answered.
----------------- -------------------------------------------------------------------
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 31 July 2020
Authorised by: By the Board
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [name of
board committee - eg Audit and Risk Committee]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations, the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDGSGDRLSXDGGB
(END) Dow Jones Newswires
July 31, 2020 02:00 ET (06:00 GMT)
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