Parkway Minerals NL entered into a binding term sheet to acquire 97.79% of Consolidated Potash Corp., or CPC, which holds a 15% interest in the Karinga Lakes potash project in Australia's Northern Territory and a 50% stake in a lithium-potash-prospective project in New Mexico.
CPC is also the sole owner of Activated Water Technologies, which owns the aMES brine processing technology, according to an Aug. 5 release.
The company said the acquisition has potential to add value to the project portfolio of its 31%-owned affiliate, Davenport Resources Ltd., and the acquired technology has the potential to improve recoveries and project economics for brine-hosted resource projects.
Parkway will issue about 479.6 million ordinary shares, about 123.3 million partly paid shares and 10 million Davenport Resources shares to CPC shareholders as well as about 10.97 million Parkway shares to CPC's majority vendor, Lions Bay Capital Inc., and 6 million Parkway shares to Victoria University. The company has also agreed to loan CPC up to A$130,000 in working capital.
In connection with the acquisition, CPC Managing Director Bahay Ozcakmak and Western Potash Corp. founder Patrick Power will be appointed to the Parkway board. Natalia Streltslova will retire from the board.