Verdant Minerals Ltd (ASX:VRM) has confirmed that Consolidated Potash Corp (CPC) has satisfied the requirements to acquire an initial 15% of the Karinga Lakes Potash Project (KLPP) in the Northern Territory and establish a joint venture.
In September 2015, Verdant engaged a subsidiary of CPC to perform bench-scale studies using its proprietary aMES technology to improve the proposed KLPP flow sheet and identify opportunities to improve the KLPP development concept more broadly.
The investigative studies confirmed that the aMES technology was able to efficiently concentrate potassium salts and remove impurities from the KLPP feedstock, two critical functions required in any potash project flow sheet.
In August 2017, Verdant Minerals and CPC entered into a concurrent joint venture and technology licensing agreement allowing CPC to acquire up to 40% of the KLPP, by making a staged investment of up to $3 million.
During the ensuing 18-month period from August 2017 through to January 2019, CPC performed a range of aMES test work and studies, culminating in the preparation of a scoping study, which satisfied the requirements for CPC to acquire an initial 15% interest in the KLPP.
Verdant managing director Chris Tziolis said: “Through this collaboration, CPC have recently delivered us a scoping study for the KLPP, which provides us with encouragement that the aMES technology provides a potentially viable alternative pathway for developing the project.
“Based on the findings outlined in the scoping study, we believe this supports further evaluating the strategic and technical potential of KLPP.
“With our current efforts firmly focused on advancing the Ammaroo Phosphate project towards a development decision, we expect our recent experience with Ammaroo will assist greatly in accelerating the potential development of the KLPP”.
In light of the encouraging progress with the aMES technology, the KLPP partners intend to explore various options to unlock value from the extensive resource delineation and process development work performed to date.