Parkway Minerals (ASX:PWN) has struck an all-scrip deal worth around $3.5m to acquire privately owned potash and brine processing tech player Consolidated Potash Corporation (CPC).
The acquisition adds to Parkway’s portfolio CPC’s interests in the Karinga Lakes potash project in Northern Territory and a prospective lithium-potash project in New Mexico, as well as full ownership of Activated Water Technologies’ (AWT) aMES™ brine processing technology.
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Parkway is particularly taken with the aMES™ brine processing technology.
“We’ve followed the progress of CPC over the last two years with interest and in particular have been most impressed with the successful aMES™ test-work performed by CPC’s AWT subsidiary,” Parkway boss Patrick McManus told investors.
“By earning a 15 per cent interest in the Karinga Lakes potash project (KLPP), CPC has demonstrated the value of CPC’s technology and capability in relation to potash and other brine projects.”
CPC managing director Bahay Ozcakmak told Stockhead that CPC’s brine technology is a faster, more efficient and more sustainable means to process potash and lithium brines.
“Given the idea of EVs is to be more sustainable (as opposed to using acid to dissolve spodumene), we think we are at the beginning of a journey that will transform mineral processing.”
Essentially the technology is aimed at simplifying the process from feedstock (brine and/or salt) to final product (potash or lithium).
“We believe CPC’s technology has the potential to materially improve product recovery and project economics for brine hosted resource projects globally,” McManus said.
To satisfy the deal, Parkway will issue CPC shareholders roughly 500 million Parkway shares and 10 million Davenport Resources (ASX:DAV) shares, valuing the deal at $3.5m.
Parkway currently owns 44.2 million shares in Davenport, which is focused on potash exploration in the South Harz region of central Germany.
Ozcakmak told Stockhead that when the deal was structured privately, Parkway’s share price was just 0.3c, but the share price had doubled in the last month.
He said the merger provided the enlarged Parkway with the critical-mass to not only advance existing projects in the expanded portfolio, but to further leverage the advantages of CPC’s technology platform into high-value segments of the global mining sector.
In other ASX bulk metals news:
Tolga Kumova-backed Canyon Resources (ASX:CAY) has uncovered “very high-grade” bauxite at its flagship Minim Martap project in Cameroon. Drilling has delivered grades of up to 53.7 per cent, with 23 of the 27 holes delivering grades of over 50 per cent.
Metro Mining (ASX:MMI) has reported monthly mining and shipping records for July. The company mined 443,000 wet tonnes and shipped 463,000 wet tonnes in July, up from 427,000 wet tonnes mined and 374,000 wet tonnes shipped in June.
“We are still trending upwards as our team gains experience with our operation, and the improved work systems have enhanced our productivity,” CEO Simon Finnis said. “Metro is confident of maintaining these levels throughout the year and remains on track to meet production and shipping guidance of 3.3-3.5 million [wet tonnes].”
Shares, however, headed south 11.5 per cent to 11.5c on Tuesday morning.
Metallica Minerals (ASX:MLM) is still unable to reach an agreement with its joint venture partner on how to proceed with the Urquhart bauxite project in Queensland. This has seen Metallica withdraw its application for a mining lease over the proposed haul road to Hey Point. The partners are instead continuing to progress studies and designs for building a barge loading and/or ship loading facility on an area adjacent to the project.