Join our daily newsletter At The Bell to receive exclusive market insights
- Fin Resources (FIN) has entered into a binding agreement to acquire an 80-per-cent interest in the North Onslow Solar Salt Project
- The project consists of five granted exploration licences and one pending exploration licence, covering 425 square kilometres
- Fin Resources’ consideration will consist of 83,333,333 ordinary company shares, $500,000 cash, and a revenue royalty interest in the project
- In related news, the company has received firm commitments to raise up to $1.6 million through a placement
- Fin Resources is up 65.38 per cent and trading at 4.3 cents per share
Fin Resources (FIN) has entered into a binding agreement, to acquire an 80-per-cent interest in the North Onslow Solar Salt Project.
The company entered into the agreement with North West Solar Salt (NWSS), which currently owns the project.
The North Onslow Solar Salt Project consists of five granted exploration licences and one pending exploration licence. Combined, the tenements cover 425 square kilometres.
Situated just north of Onslow in Western Australia’s northwest coast, the project is strategically placed in the ideal location for solar salt production. Solar salt, as opposed to rock salt, is produced when sunlight evaporates bodies of salt water and brine, leaving behind a purified salt crystal.
The North Onslow project exists in an area with Australia’s highest evaporation rates, very high solar exposure, and low rainfall. These are the perfect climate conditions for a successful solar project, making it an attractive asset for acquisition.
The project also has significant pre-existing support infrastructure, as well as proximity to existing markets. It is currently the subject of a scoping study update, the results of which are expected in 2021’s third quarter.
Fin Resources’ Director, Jason Bontempo, commented on the company’s acquisition of a majority interest in the project.
“The acquisition of the strategically located North Onslow Salt Project interest is an outstanding outcome for our shareholders,” he said.
“With abundant solar and wind energy as well as proximity to infrastructure and markets, we hope the projects will become a major supplier in the lucrative yet stable global salt market,” he added.
Fin Resources’ consideration to NWSS for the acquisition will consist of 83,333,333 fully paid ordinary company shares, as well as $500,000 cash. The consideration shares will be escrowed for 12 months from the date of their issue.
Additionally, shareholders in NWSS will retain a one per cent gross revenue royalty interest in the project.
After the acquisition, Fin Resources and NWSS will form an unincorporated joint venture in respect of the North Onslow project. Fin will free carry NWSS’ 20 per cent joint venture interest to the completion of a definitive feasibility.
In related news, Fin Resources has received firm commitments to raise up to $1.6 million through a placement of 89,333,333 shares. The placement will consist of an initial tranche of up to 72,922,860 shares, with a second tranche of up to 16,410,473 shares.
The company plans to use the proceeds of the placement to fund exploration across its various projects, as well as working capital.
Fin Resources is up 65.38 per cent, trading at 4.3 cents per share at 12:48 pm AEST.
