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Parkway Corporate (ASX:PWN) boosts stake in Karinga Lakes project to 40pc

ASX News, Mining
ASX:PWN      MCAP $25.13M
24 June 2022 09:03 (AEST)

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Parkway Corporate (PWN) has increased its ownership of the Karinga Lakes potash project (KLPP) in the Northern Territory.

The project is a joint venture between private company Verdant Minerals and PWN’s wholly owned subsidiary Parkway Ventures, which is administered through Territory Potash.

Since acquiring 15 per cent of the project in August 2019 through the purchase of Consolidated Potash, Parkway has been working to satisfy certain conditions to increase its interest to 40 per cent.

This work included completion of a pre-feasibility study (PFS) in November 2020, which demonstrated potential for a small scale operation targeting yearly production of 40,000 tonnes of sulphate of potash over an initial 20-year mine life.

According to Parkway’s Managing Director and CEO Bahay Ozcakmak, the price of sulphate of potash is currently trading around twice the price estimated in the PFS.

“Acquiring this additional 25 per cent equity interest in the KLPP, particularly at a time of buoyant fertiliser prices, represents another important milestone for Parkway,” Mr Ozcakmak said.

“Emerging long-term supply chain challenges, particularly at a time of rising demand for fertiliser commodities, is creating exciting opportunities for new fertiliser projects.”

The company was also granted three exploration licences by the NT Government in December 2021, which finalised a protracted tenement rationalisation process.

Now, the joint venture parties are working to assign Parkway’s interest in the tenements.

Parkway Corporate was up 11.11 per cent to $0.01 per share as of 10:12 am AEST.

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