PERTH (miningweekly.com) – Junior potash explorer Elemental Minerals has secured the balance of its Sintoukola project, in the Republic of Congo, by agreeing to acquire the minority holders' direct stake in the project.
Elemental would issue the minority shareholders new shares in the company, based on their relative shareholding in the potash project. The company would issue about 13.04-million new shares, taking its own holding in the project from 93% to 97%.
Les Estalibssements Congolais MGM would retain its 3% holding in the Congolese asset, and would also retain its chairmanship of the Sintoukola holding company.
Elemental would have first option over the MGM shareholding in the potash project.
The ASX-listed junior told shareholders on Monday that the increased shareholding in the Sintoukola project would allow Elemental additional operational flexibility to further develop the project, with the aim of completing a bankable feasibility study over the next 18 months.
Discussions with a number of potential strategic partners were also under way.
A prefeasibility study showed that the project could deliver about two-million tons a year of muriate of potash. The underground operation was expected to have a mine life of 23 years. The project could be developed at a total capital cost of $1.85-billion, and would have a net present value of $2.9-billion and an internal rate of return of 29.3%
Elemental was targeting initial potash production by 2017 and to reach full capacity in 2018.