Kazakhstan Potash Corp To Buy Potash Deposit For Us$70m
ASX-listed Kazakhstan Potash Corporation (KPC) has extended its $70-million purchase period of the Satimola potash deposit by nine months.
The company in 2015 signed a sale and purchase agreement to acquire Satimola Limited, which holds the Satimola deposit, in the Republic of Kazakhstan, for a purchase price of $70-million, which consisted of a first $55-million cash payment and two promissory note payments of $7.5-million each.
It was agreed that the two promissory notes payments would be made on the first use of construction finance for the mining project, while the second would be made after the first potash shipments from the Satimola project.
KPC said on Tuesday that the purchase price would remain $70-million if the company completed the proposed acquisition within the next nine months, however, it would increase by $1-million should KPC require an additional three months, by $1.5-million should the company require an additional six months, and by $3-million should the company require an additional nine months to complete the purchase.
KPC has also agreed to pay Satimola the sum of $150 000 a month as working capital.
Furthermore, the two companies have established an operations committee to oversee the preparation of a bankable feasibility study for the Satimola project, at KPC’s expense.
Work on the bankable feasibility study has already started.
The Satimola project is estimated to host a six-billion tonne resource, grading at 15.5% potassium oxide.
Kazakhstan Potash Corporation Limited (KPC:AU) is a mineral exploration company with a focus on potash, gold, nickel, and copper deposits. The Company has acquired rights to two potash salt deposits in Kazakhstan, as well as interests in several mining tenements in Western Australia.