Western Australian Government has recently confirmed that it is going to help in the development of the potash and minerals in brine industry. Following this news, the mineral exploration company Australian Potash Limited (ASX: APC) released a statement in which the company’s CEO Mr. Matt Shackleton said that the company is delighted that the WA Government has acted on industry’s concerns regarding mining leases for minerals in brine. Following the press release, APC’s shares went up by 3.03 percent on 14 December 2018.
Mines and Petroleum Minister Mr. Bill Johnston released a media statement on 13 December 2018 in which McGowan Government has committed to assisting the development of the potash and minerals in brine industry by introducing a new rental rate for potash projects that are granted a new class of mining lease for restricted minerals.
As per the media statement, the existing rental rate ($18.70/hectare) was inappropriate for industrial minerals in brine because the operations in the brine industry are required larger mining leases than other forms of mining.
The proposed new rental rates are $2.32 per hectare for the first five years of the lease and $4.64 per hectare from year six onwards. As per Mr. Bill Johnston, these actions by the WA government will help in the development of a new industry in WA, and it will also generate more employment and opportunities for the community development.
As per Australian Potash Limited (ASX: APC) CEO Mr. Matt Shackleton, this decision by WA government could further reduce the cost of the company’s lowest cost quartile production profile making it an even more internationally competitive project.
Australian Potash Limited, an ASX-listed Sulphate of Potash (SOP) developer, wholly owns the Lake Wells Potash Project located in Western Australia. Recently, the company held its Annual general meeting (AGM) in which the company passed all resolutions which were detailed in the Notice of AGM. Resolution 4 at the AGM which was regarding the Approval of 10 percent Placement Capacity, was a special resolution and was passed with the requisite 75 percent majority.
As at 30 September 2018, the net cash used in operating activities was $1.095 million, the net cash used in investing activities was $1,000 and net cash used in financing activities was $50,000. At the end of September quarter, the company was having cash and cash equivalent of $1.162 million.
Australian Potash’s shares prices increased by 13.79 in the last six months as on 13 December 2018. APC’s shares traded at $0.068 with a market capitalization of circa $20.13 million as on 14 December 2018 (AEST 01:07 PM).
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