Impact strikes an HPA deal in WA

21st March 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – ASX-listed Impact Minerals on Tuesday announced a ‘transformational’ acquisition, acquiring an 80% interest in the Lake Hope high purity alumina (HPA) project, in Western Australia.

Under the terms of the agreement with unlisted Playa One, Impact would earn an interest in the company in stages, with the first A$25 000 cash payment payable for a six-week option to complete a due diligence.

The company could then exercise its option and earn the right to sole fund a prefeasibility study (PFS) by paying a further A$175 000 in cash and issuing 50-million fully paid ordinary shares as well as 30-million unlisted options, exercisable at 1.15c each and vesting 12 months from the date of issue.

On completion of the PFS, Impact can enter into an incorporated joint venture (JV) with Playa One, and could acquire an immediate 80% interest in Playa One by issuing up to 120-million fully paid ordinary shares capped at a maximum value of A$8-million.

On completion of a definitive feasibility study (DFS), which will be sole-funded by Impact, the ASX-listed company would issue a further 100-million shares, capped at a maximum value of A$10-million to Playa One.

Playa One will be free carried to a decision to mine, after which the company could contribute to mine development costs or see its interest in the project diluted. If the interest falls below 7.5%, it would convert to a 2% net smelter royalty.

“This is a watershed day for Impact Minerals and its shareholders. We believe the Lake Hope project presents an unrivalled opportunity to put the company firmly on the path to low-cost production in the rapidly expanding and high-margin HPA business. Combining a globally unique deposit within the top few metres of a playa salt lake and a straightforward metallurgical process offers a disruptive entry into the HPA space,” Impact MD Dr Mike Jones said.

Speaking at the Paydirt Battery Minerals conference, in Perth, Jones noted that the Lake Hope project currently had an exploration target of between 620 000 t to 1.25-million tonnes of aluminium oxide.

Jones told delegates that Impact was planning a maiden resource at Lake Hope later this year and would undertake PFS and a 10 t/y pilot plant in 2024, with the DFS planned for 2025, with a 1 000 t/y pilot plant and financing and offtake negotiations planned for 2026.

“This is our clear strategy. We're going to be one of the lowest cost producers of HPA globally. We've got a unique deposit and a tier one jurisdiction. We've got a cost disruptive metallurgical process, we're going to build out our capabilities and metallurgy and product specification and we're going to deliver this product into a high margin growth market with significant upside potential,” Jones said on Tuesday.

Edited by Creamer Media Reporter


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