Millennial Potash has successfully secured a 70% interest in the shares of Equatorial Potash Pty, which, through its Gabon subsidiary Mayumba Potasse SARL, holds 100% ownership of the Banio Potash Project. This milestone was achieved following the company's filing of a Preliminary Economic Assessment (PEA) and the completion of milestone payments totaling $300,000 along with the issuance of 1 million shares of MLP to the vendors of the project.
The PEA report reveals promising economic prospects for the Banio Potash Project, highlighting the potential for a low-cost solution mining operation. The assessment is based on the production of 800,000 tonnes per year of granular muriate of potash. Notably, the thick potash horizons and solution mining approach have led to some of the industry's lowest capital expenditures (CAPEX) at US$480 million and operating expenditures (OPEX) at US$61 per tonne of muriate of potash (MOP). The project's robust economic potential is underscored by a post-tax Net Present Value (NPV) of US$1.07 billion and an Internal Rate of Return (IRR) of 32.6%.
Millennial Potash intends to follow through on the PEA's recommendations, which include preparing for additional drilling at the North Target to further expand the project's resources. This forward-looking approach aims to solidify the Banio Potash Project's standing as a significant player in the potash industry, which is crucial for agriculture and various industrial applications.
