30th Apr 2015 10:22
LONDON (Alliance News) - Wildhorse Energy Ltd Thursday said it believes the acquisition of Australia Salt Lake Potash Pty Ltd will provide the company with the opportunity to build a high margin business supplying an increasingly sought after value adding agricultural product to both domestic and international markets.
The energy company agreed to acquire Australia Salt Lake on April 9 in an all-share deal which will see Wildhorse issue Australia Salt Lake with 15.0 million Wildhorse shares, which will be issued at the mid-market price when the market closes on the day prior to issue, and a series of performance based convertible shares.
Following shareholder approvals, completion is expected to occur in early June 2015.
As a consequence of the deal, Wildhorse also acquired two large scale, high grade sulphate of potash brine projects in Western Australia. On Thursday, Wildhorse said the projects have the "potential for producing substantial tonnages of sulphate of potash and/or sulphate of potash magnesia, which are used in fertilizers, providing both potassium and sulfur.
The company said the projects have "excellent chemistry" that is suitable for production with large salt lakes featuring high potential recharge from large drainage basins. It also said there are "very favourable" climatic conditions for operations to potentially run all year round which will provide a more cost effective operation using conventional evaporation and crystallisation ponds, alongside good access to infrastructure.
Australia Salt Lake also secured to exploration licenses in April on the Lake Ballard project, which Wildhorse will also acquire under the deal.
In addition, the company has commenced a technical review of existing exploration information to determine the most appropriate manner to undertake further exploration activities at the Golden Eagle uranium and vanadium project in Colorado, US.
At the Mecsek Hills uranium project in Hungary, the company resolved to divest of its holdings in the first quarter of 2015, with discussions about the sale of the assets continuing. Wildhorse said the Hungarian government have deemed the project joint venture entity as a matter of "national importance", which the company is hoping will speed up the process.
Wildhorse shares were down 3.3% to 5.56 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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