FTI Consulting directors have been appointed as voluntary administrators for Australian Potash, marking the third time in over two years a Western Australian potash player has collapsed.
Australian Potash directors resolved on December 6 to appoint Hayden White and Daniel Woodhouse, following the company’s unsuccessful 12-month effort to raise capital to advance the Lake Wells sulphate of potash project (LSOP).
The company surrendered the LSOP mining leases with the Department of Energy, Mines, Industry Regulation and Safety in August, while holding onto the exploration licenses it holds at Lake Wells and the West Arunta region of WA.
It follows Kalium Lakes’ August announcement that it would be entering into administration.
“The administrators intend to pursue a realisation strategy involving a sale of Australian Potash’s business and assets and/or a recapitalisation of the company via a deed of company arrangement,” FTI Consulting said.
“The administrators will collaborate closely with the company’s employees and suppliers to preserve value for stakeholders.”
Australian Potash non-executive chair Natalia Streltsova said the last two years have been challenging for the company.
“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,” she said.
“We still maintain the project information and knowhow and will be ready to deploy them should a new opportunity emerge for this project.”
Streltsova said due to strong negativity in the market towards solar evaporation potash projects in WA, the company has turned its efforts to focusing on existing project opportunities.
“Notwithstanding this appointment, we continue to work diligently to retain and restore as much value for shareholders as we can in the circumstances. We aim to update our stakeholders with progress in this area in the very near future,” she said.
The appointment of voluntary administrators will not affect Australian Potash’s subsidiaries which will continue to operate as normal.
Australian Potash’s shares will remain suspended from trading on the Australian Securities Exchange while in administration.
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