Australian gold production company Blackham Resources (ASX:BLK) has announced its entered into a Memorandum of Understanding (MOU) with mineral and exploration company Salt Lake Potash.
The companies intend to investigate the potential development of a Sulphate of Potash operation based in Lake Way, near Wiluna in Western Australia.
Under the agreement SLP will acquire Blackham’s brine rights and Blackham will acquire gold rights to SLP’s Lake Way Holdings.
Each company will retain a royalty on their respective holdings.
The companies say Lake Way has some advantages which make it an ideal site for sulphate of Potash operation such as sharing overheads and infrastructure with the Wiluna Gold Mine.
Shares in Blackham Resources (ASX:BLK) are trading 3.7 per cent higher to 8.4 cents.