29 Oct 2021
Quarterly Activities Report
ASX Release 29 October 2021 Agrimin Limited | ABN 15 122 162 396 ASX Code: AMN 2C Loch Street Nedlands , Western Australia 600 9 T: +61 8 9389 5363 E: email@example.com | W: www.agrimin .com.au Page 1 of 7 QUARTERLY ACTIVITIES REPORT FOR PER IOD ENDING 3 0 SEPTEMBER 2021 Highlights Mackay Potash Project • Offtake negotiations advanced with multiple international fertiliser companies • A warded Lead Agency Status by the Western Australian Government • Environmental Impact Assessment progressed with the Environmental Review Document submitted to the Environmental Protection Authority • Heritage surveys completed across all three native title determination areas to clear the proposed haul road and associated infrastructure • Front End Engineering Design (“FEED”) works continued Corporate • Cash balance of $ 3.0 million as at 30 September 2021 A grimin Limited ( ASX: AMN ) (“ Agrimin ” or “ the Company ”) is pleased to report its activities for the quarter ending 3 0 September 2021 . Mackay Potash Project – Western Australia (100% owned ) Agrimin’s vision is to establish the Mackay Potash Project (“ the Pr o ject ”) as the world’s leading seaborne suppl ier of Sulphate of Potash (“ SOP ” ) fertiliser , to develop the P roject with sustainability principles at its core and to empower local Indigenous communities throughout the P roject’s long life. The Project is situated on Lake Mackay in Western Australia (“ WA ”) , the largest undeveloped potash - bearing salt lake in the world. Lake Mackay host s significant volumes of brine ( hypersaline groundwater) containing dissolved potassium and sulphur which can produce high - grade, water - soluble S OP fertiliser. Page 2 of 7 SOP has a low salt index and is virtually chloride - free, making it ideal for use on high value crops such as fruits and vegetables . Agrimin’s SOP is certified as an allowable input for use in organic production systems . The P roject is located 94 0 km by road south of the Wyndham Port in WA ( Figure 1 ). It comprises nin e granted Exploration Licences covering 3,057 km 2 in WA and thre e E xploration Licence application s covering 1,240 km 2 in the Northern Territory. The closest community to the P roject is Kiwirrkurra which is located approximately 60km south - west. A Native Title Agreement is in place and provides the necessary consents for the P roject ’s development and operation. Figure 1. Project Location Map The P roject ’s development plan is based on the sustainable extraction of brine from Lake Mackay using a network of shallow trenches. B rine will be transferred along trenches into a series of solar evaporation ponds located on the salt lake’s surface . R aw potash salts will crystallise on the floor of the ponds a nd be collected by wet harveste rs and pumped as a slurry to the processing plant located o ff the edge of the salt lake . The plant will refine harvested salts into high quality finished SOP fertiliser ready for direct use by customers . SOP will be hauled by a dedicated fleet of road trains to a purpose - built storage facility at Wyndham Port. At the port, SOP will be loaded via an integrated barge loading facilit y for shipment to customers. The Defini tive Feasibility Study (“ DFS ”) for the Mackay Potash P roject was completed in July 2020 . The DFS demonstrated the P roject’s globally significant scale and that once in operation it could be the world’s lowest Page 3 of 7 cost source of seaborne SOP. The Project also offers e xcellent potential to expand over time to meet the expected growth in demand for SOP . The Independent Technical Review (“ IT R ”) of the Project and the DFS was completed in April 2021 by Advisian Pty Ltd, a subsidiary of the Worley Limited group of companies . The ITR report concluded that, based upon the data described in the report, the identified project risks are not expected to impact the technical and financial viability of the Project, particularly when considering the FEED work programs and mitigations that are planned to occur prior to the Company making a Final Investment Decision (“ FID ”) . Agrimin’s commitment to a sustainable and ESG - friendly development wa s embodied through out the DFS and the P roject will deliver on a number of metrics , including : • Strong engagement with Indigenous people and Traditional Owners, as well as support for important land management and community programs; • Significant commitment to training and employment opportunities for Indigenous people, particularly in relation to the road haulage operation; • H igh renewable energy penetration to deliver very low greenhouse gas emissions along with one of the lowest carbon footprints associated with any macro - nutrient fertiliser product; and • Creat ion of critical new seaborne SOP supply to help developing countries achieve their food security goals, especially with respect to increasing demand for high value crops such as fruits, vegetables , tree nuts and grape - vines . Following completion of the DFS and ITR , the Mackay Potash P roject is now rapidly advanc ing toward a n FID . Current activities includ e : • P roject funding and strategic partnership s; • FEED work, e xecution planning and contracting; and • M ining ten ure and e nvironmental approvals . Product Marketing and Project F und ing During the quarter, the Company neared the finalisation of additional binding offtake agreements. These offtake agreements will b e in addition to the Binding Offtake Agreement signed with Sinochem Fertilizer Macao Limited for the supply of 150,000tpa of SOP for sale and distribution in China. Sinochem Fertilizer Macao Limited is a wholly owned subsidiary of Sinofert Holdings Limited, one of China’s la rgest crop nutrition companies and plays a pivotal role with global potash suppliers to ensure the country 's potash supply. T he Company continue d to engage w i th potential project financiers, including the Northern Australia Infrastructure Facility (“ NAIF ”) which has express ed its interest to provide concessional longer term debt finance for the Project. Front End Engineering Design The Company ’s integrated owner’s team is currently progressing the FEED phase of the Project . During the quarter, Primero Group Limited advanced the FEED works for the Project’s process plant and associated non - process infrastructure . Page 4 of 7 Royal IHC has commenced the FEED works for the Project’s automated wet harvest ing equipment . D uring the quarter, the Company completed a wet harvesting trial within its pilot evaporation ponds on Lake Mackay. Completion of long - term wind monitoring at Lake Mackay has allow ed the Company to progress the final power system selection for the Project . The Company is working towards maximis ing renewables penetration by matching process the Project’s power demand with the availability of renewable energy supply (load profiling), as well as progressing the potential integration of hydrog en - based storage solutions. Project Approvals T he Environmental Impact Assessment (” EIA ”) for the Mackay Potash Project continue d during the quarter, and remains the critical path item for the commencement of full - scale construction. The P roject will be assessed by the WA Environmental Protection Authority (“ EPA ”) at a Public Environmental Review level with a four week public comment period. The EPA’s assessment is an accredit ed process under a bilateral agreement with the Commonwealth Government, and therefore the P roject will not require a separate assessment by the Commonwealth Department of Agriculture, Water and the Environment . All environmental surveys and studies required to support the EIA have now been completed. During the quarter, the Company submitted its finalised Environmental Review Document (“ ERD ”) to the EPA . The EPA’s acceptance of the ERD and the public comment period are the next key step s in the EIA timeline. In parallel with the EIA, the Company is progress ing the P roject’s other remaining approvals, licences and agreements , which include : • D epartment of Mines, Industry Regulation and Safety – Miscellaneous Licences , Mining Lease, Mining Proposal and Mine Closure Plan approvals ; • Department of Water and Environmental Regulation – Works A pproval and Li cence ; and • Agreement s with Parna Ngururrpa ( Aboriginal Corporation) RNTBC and Tjurabalan Native Title Lands ( Aboriginal Corporation) RNTBC for the grant of Miscellaneous Licences over the proposed haul road. Government and Community Engagement During the quarter, the Company announced that the Department of Jobs , Tourism, Science and Innovation (“ JTSI ”) will act as the lead agency for the Mackay Potash Project . JTSI is the WA Government ’s lead agency and provides project facilitation assistance to State significant projects . T he majority of the final approvals required for the Mackay Potash Project are managed by the WA Government , emphasising the importance of Lead Agency Status and the st reamlin ing of approvals . WA’s Lead Agency Status is in addition to the Major Project Status awarded to the Mackay Potash Project by the Australian Government in May 2020. T he Company continue s its active engagement in local communit ies and across all levels of F ederal , S tate and L ocal G overnment . T he Mackay Potash P roject enjoys strong support in local communities, particularly given the employment opportunities and economic infrastructure that the P roject will create. T he P roject is expected to create approximately 200 direct full - time jobs and support over 600 jobs through the regional supply chain over its 40 year life, generating valuable long - term opportunities for Indig e nous people living in Central Desert communities , as well as people living throughout the broader Kimberley region . Page 5 of 7 During the quarter, Newhaul Bulk Pty Ltd (the strategic haulage joint venture between Agrimin and Newhaul Pty Ltd ) continued to p rogress p lans to establish a Driver Training Academy to maximise the number of local employees a nd provide further opportunities for local employment and skills training presented by the P roject’s development. The Driver Training Academy will aim to provide inspiring pathways for young people in Central Desert, East Pilbara and Kimberley communities who are interested in pursuing a long - term career in logistics . Lake Auld Potash Project – Western Australia (100% owned) During the quarter, the Company undertook a heritage survey a cross the Lake Auld Potash Project and continued its consultations with Western Desert Lands Aboriginal Corporation (Jamukurnu - Yapalikunu) RNTBC, the Native Title representative body for the Martu people. The Lake Auld Potash Project is located approximately 6 4 0km south - east of Port Hedland, WA ( Figure 1 ) . The Lake Auld Potash P roject consists of a granted Exploration Licence covering a lakebed area of 108km ² across Lake Auld. Lake Auld’s exceptionally high grades, favourable climatic conditions for solar evaporation and proximity to a major ope rating port support the potential for strong economics. The Lake Auld Potash Project is neighboured either side by the Company’s existing Exploration Licence applications which cover the Canning Palaeovalley , including the remainder of Lake Auld and Percival Lakes. The Company’s tenements cover the most prospective portion of the 450km l ong lake system where historic sampling of brine has returned the highest known in - situ SOP grades from an Australian salt lake. C orporate A ctivities During the quarter, the Company provided a number of virtual presentation s, including the Noosa Mining Investor Conference in July 2021 . Share Issues No o rdinary shares or other securities were issued during the quarter. Business D evelopment V arious business development opportunities are constantly under consideration, with a ll opportunities being assessed in context of the Company’s current strategic goals and risk profile . Agrimin hold s a 40% interest in Tali Resources Pty Ltd which h a s Exploration Licences in WA that are prospective for gold and base metals mineralisation . The Exploration Licences are subject to a Farm - in and Joint Venture Agreement with Rio Tinto Exploration Pty Ltd . A ground gravity survey was undertaken during the quarter. Page 6 of 7 Summary of Expenditure Incurred on Activities T he Company incurred $ 1, 786 ,000 which f or accounting purposes has been allocated to exploration and evaluation activities during the quarter. No expenditure was allocated to development or production activities during the quarter. E xploration and evaluation expenditure during the quarter related to on - site operating costs, FEED work s , environmental approvals, native title a greement s, product marketing and project financing. Payments to Related Parties of the Entity A description of and explanation for payments to related parties and their associates per Section 6.1 of the Appendix 5B for the quarter ending 3 0 September 2021 is set out below ( T able 1 ). Table 1 . Payments t o Related Parties of t he Entity a nd t heir Associate s Item Current Quarter (A$) Previous Quarter (A$) Directors’ R emuneration CEO Salary and Superannuation 82,500 82, 500 Non - Executive Director Fees 57, 5 00 57,37 5 Company Secretarial Fees 9 , 000 9 , 000 Total payments to related parties of the entity and their associates 14 9,000 14 8 , 87 5 Tenement Interests Table 2 . Schedule of Tenement Interests as at 3 0 September 2021 Tenement Ref. Project Holder State Status Interest Exploration Licen c es E80/4887 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/4888 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/4889 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/4890 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/4893 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/4995 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/5055 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/5124 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% E80/5172 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% EL30651 Mackay Potash Agrimin Limited N.T. Application 100% EL31780 Mackay Potash Agrimin Limited N.T. Application 100% EL31781 Mackay Potash Agrimin Limited N.T. Application 100% E45/4925 Lake Auld Potash Agrimin Potash Pty Ltd W.A. Granted 100% E45/5417 Lake Auld Potash Agrimin Potash Pty Ltd W.A. Application 100% E45/5419 Lake Auld Potash Agrimin Potash Pty Ltd W.A. Application 100% Page 7 of 7 Tenement Ref. Project Holder State Status Interest E45/5420 Lake Auld Potash Agrimin Potash Pty Ltd W.A. Application 100% E45/5579 Lake Auld Potash Agrimin Potash Pty Ltd W.A. Application 100% Other Licences L80/87 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% L80/88 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% L80/96 Mackay Potash Agrimin Potash Pty Ltd W.A. Granted 100% L80/98 Mackay Potash Agrimin Potash Pty Ltd W.A. Application 100% ENDS For further information, please contact: Investors Media Mark Savich Michael Vaughan Chief Executive Officer Fivemark Partners T: +61 8 9389 5363 T: +61 422 602 720 E: firstname.lastname@example.org E: email@example.com Or visit our website at www.agrimin.com.au This ASX Release is authorised for market release by Agrimin’s Board . About Agrimin Based in Perth, Agrimin Limited is a leading fertiliser development company focused on the development of its 100% owned Mackay Potash Project. The Project is situated on Lake Mackay in Western Australia, the largest undeveloped potash - bearing salt lake in the world. Agrimin is aiming to be a global supplier of specialty potash fertilisers to both traditional and emerging value - added markets . Agrimin’s shares are traded on the Australian S ecurities Exchange (ASX: AMN ). Forward - Looking Statements This ASX Release may contain certain “forward - looking statements” which may be based on forward - looking information that are subject to a number of known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those pres ented here. Where the Company expresses or implies an expectation o r belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward - looking information includes exchange rates ; the proposed production plan; projected brine concentrations and recovery rates; uncertainties and risks regarding the estimated capital and operating costs; uncertainties and risks regarding the development timeline , including the need to obtain the nec essary approvals. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other ASX Releases . Readers should not place undue reliance on forward - looking information. The Company does not undertake an y obligation to release public ly any revisions to any forward - looking statement to reflect events or circumstances after the date of this ASX Release , or to reflect the occurrence of unanticipated events, except as may be required under applic able securities laws.