Millennial Potash has announced that it has successfully earned a 70% interest in the shares of Equatorial Potash Pty, which, through its Gabon subsidiary Mayumba Potasse SARL, holds 100% of the Banio Potash Project. This significant milestone was achieved through the filing of a Preliminary Economic Assessment (PEA) and by making milestone payments amounting to $300,000 and 1 million shares of MLP to the vendors of the Banio Potash Project.
Farhad Abasov, Chairman of Millennial Potash, elaborated on the details of the PEA report. It indicates the potential for a low-cost solution mining operation at the Banio Potash Project. The assessment is based on an annual production of 800,000 tonnes of granular muriate of potash. The thick potash horizons and the solution mining approach have resulted in one of the lowest capital expenditure (CAPEX) estimates in the industry, at US$480 million, and operating expenditure (OPEX) at just US$61 per tonne of muriate of potash (MOP).
The economic viability of the project is further underscored by a post-tax Net Present Value (NPV) of US$1.07 billion and an Internal Rate of Return (IRR) of 32.6%. These figures highlight the robust financial potential of the Banio Potash Project, marking it as a significant development in the potash industry.
Moving forward, Millennial Potash intends to continue implementing the recommendations outlined in the PEA. This includes preparation for additional drilling at the North Target to further expand the project's resources. The company’s strategic actions are aimed at maximizing the project’s value and ensuring long-term success.
