Australian-headquartered aspiring fertiliser minerals firm, Parkway Minerals NL (ASX: PWN) focusses on meeting the growing demand for fertiliser products, possessing a robust portfolio of projects in Western Australia, including Lake Seabrook and Dandaragan Trough Project, which contains massive greensand deposits rich in phosphates and potash in Perth basin.
In addition, the company holds strategic investments in Davenport Resources Limited (ASX: DAV), focussed on potash exploration in the South Harz region of Central Germany and Lithium Australia NL (ASX: LIT), focussed on lithium technology. The company also owns patented hydromet technology, K-max® technology.
Parkway has recently expanded its project and technology portfolio with the acquisition of Consolidated Potash Corporation, that enabled it to gain interests in Karinga Lakes Potash Project (KLPP), New Mexico potash-lithium project (NMLP) and aMES™ brine processing technology.
The stock of Parkway Minerals NL has delivered a massive YTD return of 40 per cent, backed by some major project developments in 2019. Considering this, let us take a look at these key updates:
Estimation of Exploration Target at Dambadgee Prospect
Parkway reported regarding an upgrade of the Exploration Target for Dambadgee Prospect on 7th January 2019. An Exploration Target of between 6 billion tonnes and 8 billion tonnes at a grade of between 3.0 per cent and 3.5 per cent K2O and between 0.9 per cent and 1.3 per cent P2O5 was estimated at Dambadgee within the Dandaragan Trough Project.
The target confirmed the Dandaragan Trough’s potential as a region containing substantial tonnages of potash, fertiliser feedstocks and phosphates.
The exploration target complemented the JORC Indicated Resource estimated at Dinner Hill in September 2017, that defined an “Indicated plus Inferred Phosphate Resource of 630 million tonnes @ 1.9 per cent P2O5” and an “Indicated plus Inferred Potash Resource of 910 million tonnes @ 3.8 per cent K2O”.
New JORC 2012 Inferred Resource for Küllstedt License
In February 2019, Parkway’s key strategic investment, Davenport, which focusses on the exploration of potash in the South Harz region of Central Germany, announced a new JORC compliant inferred resource of “1,538 million tonnes at 10.7 per cent K2O” for its Küllstedt Exploration Licence in South Harz region.
The new Inferred Resource took the total resource inventory within South Harz to 4.9 billion metric tonnes at 10.6 per cent K2O, representing the largest potash resource in Western Europe. The inventory contained 1.2 billion tonnes of sylvinite @ 13.1 per cent K2O and 3.3 billion tonnes of carnallitite at 9.4 per cent K2O, totalling over 500 million tonnes of K2O.
Results of Sampling Program at Lake Seabrook Project
Parkway announced the results of an initial sampling program conducted at its wholly owned Lake Seabrook Potash Brine Project in June 2019. The Lake Seabrook Project is situated at about 450 kilometres to the northeast of Perth and around 80 kilometres to the northeast of Southern Cross in the Yilgarn region of WA.
Lake Seabrook Sample Plan, Source: Company’s Report (11th June 2019)
With the completion of the sampling program, the project returned potassium sample results varying from 1012 mg/l to 4209 mg/l from near surface water samples. Three brine samples delivered encouraging potassium concentrations of 2616mg/l, 2521 mg/l and 4209 mg/l in the central part of the lake system.
The company mentioned that the sampling was undertaken over around half of the project area, and it intends to complete additional surface sampling on the rest of the project area. The company is also planning to conduct ground seismic surveys to identify paleochannels to drill test.
Granting of Australian K-Max Patent
In a major achievement, IP Australia granted a patent for K-Max process to Parkway in July 2019. The patent marked a remarkable step in the commercialisation of the Dandaragan Trough and application of the K-Max technology to other deposits. The patent recognised the innovation of the K-Max process for obtaining potassium from a wide array of minerals.
Acquisition of Consolidation Potash Corporation
The most significant milestone of 2019 for Parkway has been the successful completion of the acquisition of Consolidated Potash Corporation Ltd (CPC). The company entered into a binding term sheet with CPC to acquire 97.79 per cent of its issued capital in August 2019, with an intention to acquire the rest 2.21 per cent afterwards.
Parkway successfully completed $45k oversubscribed capital raising to fund the acquisition transaction, by issuing 90 million PWN shares at an issue price of $0.005.
The company recently informed about the finalisation of CPC acquisition following the overwhelming support received from the company’s shareholders. The company issued 98.83 per cent of the Consideration Shares and is planning to acquire the remaining 1.17 per cent stake in CPC by issuing around 5.6 million fully paid ordinary shares and about 1.4 million partly paid shares.
The acquisition allowed Parkway to obtain direct ownership interests in CPC’s two highly prospective brine projects – KLPP and NMLP. The acquisition is likely to offer potential opportunities to Parkway to utilise CPC’s aMES™ technology in Germany at the Davenport potash projects, at the Lake Seabrook Project and other potash projects.
One can deduce that Parkway has taken considerable steps in 2019 in line with its strategy, which includes the following components:
Stock Performance: PWN ended the day’s trade at $0.006 on 25th September 2019, with around 1.21 billion outstanding shares. The stock has generated enormous returns of 75 per cent and 133.3 per cent during the last six and three months, respectively.
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