Under the terms of the Agreement, the parties will form an unincorporated joint venture over the Carnegie Project with BC Iron having the right to earn up to a 50 per cent interest in a sequential staged manner.
During an initial Scoping Study Phase (Stage 1), BCI Minerals (formerly BC Iron) can earn a 30 per cent interest in the Carnegie Project by contributing its mobile camp facilities to the joint venture and sole-funding the first $1.5M of expenditure. During a Pre-Feasibility Study Phase (Stage 2), BC Iron can elect to earn a further 10 per cent interest in the Carnegie Project (for a total interest of 40 per cent) by sole-funding a further $3.5M of expenditure through Stage 2. During a Feasibility Study Phase (Stage 3), BC Minerals can elect to earn a further 10 per cent interest in the Carnegie Project (for a total interest of 50 per cent) by sole-funding a further $5.5M of expenditure through Stage 3.
Kalium will be appointed the manager of the joint venture, allowing the parties to leverage Kalium’s experience and expertise in developing their primary potash project, Beyondie, which is at an advanced pre-feasibility study stage. Kalium will also contribute relevant intellectual property from the Beyondie Project, which is expected to materially reduce the time and cost of progressing the Carnegie Project towards development. The Manager will report regularly to a Joint Venture Management Committee.
Further strengthening the parties’ co-operation on solar evaporation projects, BC Minerals has provided Kalium with the right to acquire a 50 per cent interest in the Mardie Project at certain development stages. The Mardie Project, which is located on the coast approximately 100km south-west of Karratha, has a large area of natural salt lakes, making it highly prospective for solar salt production with many similarities to other successful solar salt operations in the region. BC Iron is currently completing a high level scoping study on a potential 3 Mtpa solar evaporation salt operation at Mardie, with an aspirational goal to potentially strengthen Australia’s position as the largest exporter of solar salt globally in the future.