Raisebook

IPO: Brine Hosted Sulphate of Potash (SOP) Exploration in WA
Trigg Mining Limited
Trigg Mining Limited
ASX:TMG
  • Sulphate of potash (SOP) is a premium potassium fertiliser required for healthy plant growth, plant metabolism, optimisation of crop yields and quality of produce.
  • Australian consumption of SOP is currently supplied entirely by imports – there is no domestic production.
  • Globally SOP demand has been strong, doubling since 2010.
  • Trigg Mining is exploring approximately 2,640 km2 of tenements for SOP in Western Australia.
  • Projects involve the sustainable extraction and evaporation of hypersaline brines.
  • Brine hosted SOP is a naturally occurring primary source of SOP, with other methods of production requiring secondary chemical processing, increasing production costs.
  • The JORC Compliant Exploration Target at the Lake Rason Project (part of the Laverton Links Potash Project) is 2.5 - 9.0 Mt of drainable SOP with a weighted average grade of 4.3 - 6.3 kg/m3 SOP.
  • Public Offer includes free attaching new options on the basis of 1 new option for every 2 shares subscribed.
  • Enterprise Value on successful ASX listing is $7.1M.
Raise Amount
$4,500,000
Offer Price
$0.2000
Closes
May 31, 2019

Trigg Mining Limited is built on the guiding principle of building mines that communities can be proud of.

The Company aims to do this by exploring for the essential potassium fertiliser sulphate of potash (SOP) needed for global food production and human nutrition, through the sustainable extraction and evaporation of hypersaline brines in Western Australia.

Sulphate of potash is a premium potassium fertiliser required for healthy plant growth, plant metabolism, optimisation of crop yields and quality of produce. It is a necessary fertiliser for high value, chloride sensitive crops such as avocados, cocoa, coffee beans, grapes, berries and tree nuts, as well as arid and acidic soils.

Potassium is also of vital importance for human health where it is required for normal cell function, maintenance of cardiovascular health and prevention of stroke and coronary heart disease.

The Company has built a competitive footprint across two SOP Projects: Laverton Links and Lake Throssell Potash Projects.

The projects cover 2,640 km2 of granted tenure containing over 400 km2 of salt lake playa and 300 km of interpreted palaeochannels (ancient underground rivers), all prospective for brine hosted SOP, located approximately 200 km east of Laverton in Western Australia.

Early exploration work has established a JORC Compliant Exploration Target of 2.5 – 9.0 million tonnes of SOP @ 4.3 – 6.3 kg/m3 SOP for the Lake Rason Prospect. This represents approximately 15% of the Company’s total tenure, by area.

Trigg Mining has assembled an experienced team, led by Keren Paterson, which is well qualified to exploit the potential of the Company’s exploration assets.

The Board has significant expertise in mineral projects, project development and corporate finance, and aims to ensure that funds raised through the Offer will be utilised in a cost-effective manner to advance the Company’s Projects.

The Offer

Trigg Mining Limited (ACN 168 269 752) invites applications for a total of 22,500,000 Shares at an issue price of $0.20 per Share and 11,250,000 free attaching New Options on the basis of one New Option for every 2 Shares subscribed, to raise up to $4,500,000 before costs.

Armada Capital and CPS Capital Group are managing the transaction.

The offer of the securities are made in, or accompanied by, a copy of the disclosure document which can be obtained by clicking on the “ACCESS DISCLOSURE DOCUMENT” button on this page.

Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the Disclosure Document. Before making an investment decision, potential investors should read the Disclosure Documents entirely, and seek professional financial advice.

Investors should be aware that there are risks associated with an investment in this Company. No assurance can be given that the Company will achieve commercial viability through the exploration or development of its Projects and/or treatment of any deposits. A complete set of risks associated with an investment is included in Section 13 of the Disclosure Document.

Capital Structure

Ordinary Shares on Issue 30,225,000 51%
Public Offer Shares in IPO @ 20c for $4.5m 22,500,000 39%
Vendor Offer Shares on ASX listing 5,262,000 9%
Total Shares on ASX listing 57,987,000 100%
Vendor Perform. Shares on Scoping Study 2,117,813
Vendor Perform. Shares on Prefeasibility 2,117,813
Market Capitalisation $11.6 million
Enterprise Value $7.1 million

Options on IPO

OPTIONS ON IPO
Expiring 31 October 2021
1 for 2 Listed Options @ $0.20 exp 31/10/21 19,637,500
Broker Listed Options @ $0.20 exp 31/10/21 7,500,000
Executive Unlisted Options @ $0.20 exp 31/10/21 3,000,000
Executive Unlisted Options @ $0.25 exp 07/01/23 2,000,000
Total 32,137,500

Indicative Timetable

Date
Closing Date for the Offers 31 May 2019
Dispatch of holding statements 26 June 2019
Expected date for quotation of the Company's Shares and New Options on the Official List of ASX 28 June 2019

Brine Hosted SOP

The Company’s brine hosted SOP targets are formed in ancient river beds (known as palaeochannels) and salt lakes, where evaporation has concentrated the minerals in hypersaline brine over millions of years.

Production from brine hosted SOP is typically undertaken through abstraction of mineralised brine water, concentration using solar evaporation ponds and purification.

Hence, there is no need for open cut style mining involving drill and blast or large waste rock landforms.

A visual representation of the production of a solar evaporation SOP project:

The Company’s Projects

At the Laverton Links Potash Project, the Company’s strategy is to focus exploration activities on the more advanced Lake Rason and Lake Hope Campbell Prospects to expand the exploration target and progress towards the estimation of a Mineral Resource and possible processing flow sheet options for the brine.

For the less advanced Prospect of East Laverton, a phased and systematic approach to value adding exploration is planned.

Laverton Links Potash Project

  • The Company’s most advanced Project - comprises a portfolio of three prospects (Lake Rason, Lake Hope Campbell and East Laverton).
  • Consists of eight granted exploration licences and covering an area of approximately 2,315 km2.
  • Following work carried out by earlier explorers and K2O Minerals, Trigg Mining commenced exploration at the Laverton Links Potash Project in 2017 with a gravity and seismic survey, shallow pit sampling and an air core drilling program consisting of 1,050m.
  • Together this work delivered a JORC Compliant Exploration Target of 2.5 - 9.0 Mt of drainable brine SOP with a weighted average grade of 4.3 - 6.3 kg/m3 SOP at the Lake Rason Prospect. It should be noted that the Exploration Target is conceptual in nature and there is insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
  • At the Lake Hope Campbell Prospect, Trigg Mining carried out a shallow pit sampling program where SOP mineralisation was identified along the prospect length with sub- surface brine sample grades up to 6.7 kg/m3 SOP.
  • The Laverton Links Potash Project is located close to established infrastructure including roads, rail and three airstrips. Two gas pipelines pass through the Project tenements.

Lake Throssell Potash Project

  • Comprises a single exploration licence covering an area of 323 km2, situated approximately 200 km east of Laverton along the major unsealed Great Central Road through to Alice Springs and Queensland via the Outback Highway.
  • This Project lies approximately 60 km northeast of the newly established Gruyere Gold Mine and the terminus of the Yamarna Gas Pipeline.
  • The project is considered underexplored with little exploration work since the 1970s. Geoscience Australia rates Lakes Throssell as one of the most prospective lakes for sulphate of potash brine in the region.

Key Strengths and Competitive Advantages of the Company

GLOBAL DEMAND FOR FERTILISER

Global demand for sulphate of potash fertilisers is strong. The world population continues to expand whilst the area of arable land per capita is falling, placing greater pressure on increasing productivity and crop yields to feed the expanding global population.

AUSTRALIA IMPORTS ITS SOP NEEDS

Australian consumption of SOP is currently supplied by imports and Australia has frequent supply constraints from traditional suppliers, resulting in SOP imports coming from secondary (Mannheim) producers. See Section 8.5 of the Disclosure Document for a description of the Mannheim process.

PREMIUM SOP FERTILISER

Sulphate of potash contains the essential nutrients of potassium and sulphur without the addition of chloride, making it the primary choice for high value chloride sensitive crops such as avocados, cashews, almonds, cocoa, berries, stone fruits, citrus, all crops under glass and flowers.

PRIMARY SOURCE OF SOP

Brine hosted SOP is a naturally occurring primary source of SOP, with other methods of production requiring secondary chemical processing, increasing production costs.

CERTIFIABLE ORGANIC SOURCE OF SOP

Primary production of SOP from brine sources is potentially able to be organically certified for use in organic agriculture.

PORTFOLIO OF TENEMENTS

The Projects cover approximately 2,640 km2 containing more than 400 km2 of playa lakes and 300 km of interpreted palaeochannels.

LOCATED CLOSE TO ESTABLISHED INFRASTRUCTURE

The Projects lie near existing transport and energy infrastructure as follows:

  • Distance to sealed road – Lake Rason and Lake Throssell lie approximately 200 km from a sealed road at Laverton.
  • Close to major road – The Lake Throssell Potash Project lies adjacent to the unsealed Great Central Road through to Alice Springs and Queensland via the Outback Highway. The respective state governments, including Western Australia, intend to upgrade and seal sections of this road.
  • Close to established railhead at Leonora – The Malcom railhead at Leonora is 105 km from Laverton via the sealed Leonora to Laverton Road.
  • Close to gas pipelines – The Eastern Goldfields and Yamarna Gas Pipeline pass through the Laverton Links Potash Project. The Lake Throssell Potash Project is approximately 60 km northeast of the terminus of the Yamarna Gas Pipeline.
  • Proximity to port – The total transport distance to the Port of Esperance is approximately 950 km for both Projects.

AN EXPLORATION TARGET

The Company has established an Exploration Target at the Lake Rason Prospect (part of the Laverton Links Potash Project) based on historical exploration work, shallow pit sampling, geophysical surveys and 1,050 m of air core drilling. The JORC Compliant Exploration Target is 2.5 - 9.0 Mt of drainable SOP with a weighted average grade of 4.3 - 6.3 kg/m3 SOP.