Australian Potash, which owns Lake Wells sulphate of potash (LSoP) development in Western Australia, has succumbed to financial challenges, leading to the company being placed in the hands of administrators.
This development marks the collapse of a third Western Australia-based potash venture in just over two years. Previously, Salt Lake Potash, which owned the Lake Way project, folded in 2021, and Kalium Lakes’ Beyondie experienced a similar fate in August this year.
“The last two years have been very challenging for the company,” commented nonexecutive chairperson Natalia Streltsova, stating that much focus and effort had gone into finding a funding solution for the LSoP.
I can assure you that no stone remained unturned in our pursuit of funding for the LSoP development because we believe the project has considerable value for all stakeholders, both economic and social. We still maintain the project information and know-how and will be ready to deploy them should a new opportunity emerge for this project,” said Streltsova.
“More recently, due to strong negativity in the market towards solar evaporation potash projects in Western Australia, we turned our efforts to re-focusing the company on our other existing project opportunities where we believe we have project targets that have the potential to create significant shareholder value.”
Voluntary administrators Hayden White and Daniel Woodhouse of FTI Consulting have been appointed.
The administrators said they intend to pursue a realisation strategy involving a sale of Australian Potash’s business and assets and/or a recapitalisation of the company through a deed of company arrangement.