WA venture into potash one to keep tabs on

WA venture into potash one to keep tabs on

Agribusiness
Trigg Mining managing director Keren Paterson was at WAFarmers' 2019 Trending Ag conference.

Trigg Mining managing director Keren Paterson was at WAFarmers' 2019 Trending Ag conference.

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Punter is tempted to pour his money into salt lakes in WA, by investing in the latest tiddler to seek a stock market quotation, Trigg Mining.

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Rats again! The Punter sold half his shares in Andromeda Mining (ASX code ADN) last week when he had doubled his money. The next day the shares doubled in price.

The price has since held up well despite profit-taking, but the Punter has now sold his Andromeda options (ADNOB) for $1190. They came at nil cost as part of a share purchase plan.

He is tempted to pour the money straight into salt lakes in WA, by investing in the latest tiddler to seek a stock market quotation, Trigg Mining. Trigg (ASX code will be TMG) has tenements covering 400 square kilometres of salt lakes and 300km of paleo channels, and hopes to produce sulphate of potash (SoP) using solar-powered evaporation ponds.

Trigg aims to raise a minimum of $4.5m (before expenses) at 20c a share, with the sweetener of one free 20c option for every two shares. The options expire at the end of October 2021. The offer, first announced in April, has been extended and will now close on August 26.

It is still at an early stage of exploration, and with only $50,000 in the bank in late July, it has had to borrow $250,000 from one of its directors to keep going.

This contrasts with Kalium Lakes (KLL) which is currently raising up to $72m at 50c a share for its SoP operation. It expects to produce its first potash late next year and already has a binding ten-year off-take agreement for its entire output with the German fertiliser giant K+S.

Kalium has reserves of 1.5 million tonnes of SoP. Trigg has only an exploration target. Its attraction is that if it eventually proves up serious reserves, it could be a takeover target for the likes of Kalium, Australian Potash (APC) or Salt Lake Potash (SO4).

But that is pure speculation, and years down the track. The Punter will sit on his hands for now, especially as the market as a whole is looking wobbly after its strong run.

  • The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.
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