Australian Potash (APC) has surrendered the mining leases it holds to its Lake Wells project in WA.
The decision follows Kalium Lakes’ announcement that it would be entering into administration last week.
“The directors of APC are extremely disappointed that the demise of local high profile potash projects has largely contributed to the lack of investment support for our sector and project,” chairperson Natalia Streltsova said.
“We stress to shareholders that all possible options have been vigorously pursued in our efforts to preserve optimal value in the LSOP.
“We are fully committed to and already engaged in considering the company’s alternate project opportunities to generate value for our shareholders.”
APC has held the leases for the Lake Wells site for nine years but has now lodged surrender documents with the WA Department of Mining, Industry Regulation and Safety.
The company will retain its interest in the exploration license tenure for Lake Wells.
“Following the demise of Kalium Lakes this past fortnight we reviewed once again our strategic plan with respect to the LSOP,” APC managing director and chief executive officer Matt Shackleton said.
“We brought the best technical expertise the world of solar SOP has to offer to our project, and consequentially secured binding take or pay offtake agreements for nearly all our forecast output with several of the world’s more recognised and influential potash distributors.
“However, the current investment sentiment has for obvious reasons turned away from solar SOP development. We remain committed to all opportunities to restart the LSOP, but pragmatically will also pursue the Lake Wells gold project, Nexus REE and lithium project and other opportunities in pursuit of value for our shareholders and stakeholders.”
APC has received consideration of $950,000 for the sale of the camp accomodation units, wet and dry mess and water treatment equipment held at Lake Wells.