HOUSTON (ICIS)--Potash West has entered into an agreement with fertilizer exploration firm East Exploration to develop high-grade deposits in Germany, with an objective of increasing its share of the European markets, the Australian fertilizer developer announced on Tuesday.
Company officials said that through a series of funding payments and exploration analysis, it can earn a 55% stake in the joint venture, which will be targeting a site in the South Harz district of Germany, where potash has been mined since 1896.
Currently it holds a 25% stake after paying $100,000 with a further $200,000 pending for an additional 25% share. These funds will be utilised to acquire the necessary licensing for the project and to conduct a comprehensive review of the past geological data. Once completed Potash West holds the option to acquire another 5% in the venture for a $50,000 payment.
Previous drilling results at South Harz indicate the presence of shallow potash mineralisation. The joint venture has applied for two exploration permits.
Potash West said both areas they are targeting are known to have intersected potash deposits and are adjacent to areas which have had significant production over the last century.