Trigg Mining Limited (ASX: TMG) is an explorer of the essential potassium fertiliser, sulphate of potash (SOP), which is needed for global food production and human nutrition. Founded on the purpose of building mines communities can be proud of, the company engages in 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.
Trigg Mining Limited is seeking to raise A$4.5 million and will have an enterprise value of A$7.1 million at listing. The company is also offering 1 free attaching option on the basis of 1 new option for every 2 shares subscribed. Each new option will be quoted (ASX: TMGO) and will be exercisable at $0.20 per new option on or before 31 October 2021.
The Company intends to use the funds raised under the Offer as follows:
to pay for the costs associated with the Offer.
Trigg Mining is engaged in the exploration and evaluation of SOP mineralisation, used predominantly as a mineral SOP fertiliser and is a valuable tool in crop management by positively influencing crop yield and quality. SOP nutrients play an important role in the development of proteins, enzymes and vitamins, as well as improving plant photosynthesis and growth. It improves nutritional value, taste and appearance (size, colour, and scent), fruit’s resistance to deterioration during transport and storage and its suitability for industrial processing. SOP can improve the uptake of phosphorus, iron, and other micronutrients and helps the plant to be more resistant to drought, frost, insects and many diseases. In sandy soils it can also reduce leaching of cations such as calcium and potassium.
The Company has built a competitive footprint across two SOP Projects: Laverton Links and Lake Throssell Potash Projects.
The Projects total 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. Early exploration work has established a JORC Compliant Exploration Target of 2.5–9.0 million tonnes of SOP (at 4.3 – 6.3 kg/m3) for the Lake Rason Prospect, representing approximately 15% of the Company’s total tenure by area.
Both Projects are well endowed in terms of transport and energy infrastructure. Multiple roads and tracks access the Projects and two gas pipelines pass directly through the Laverton Links SOP Project. Nearby airstrips are located at the Tropicana and Gruyere mines, as well as the commercial airport at Laverton. Logistics for access to domestic and international markets is, subject to negotiation of suitable access and infrastructure arrangements, likely to be via 300 km of road to the railhead at Leonora and then onwards via rail or road to domestic markets, or to international markets via the deep-water port of Esperance.
In 2017, the United Nations estimated the world’s population had reached almost 7.6 billion and would continue to expand at 1.1% per annum to reach 8.6 billion by 2030. In contrast, the world’s arable land has decreased by more than a third in the 40 years to 2015 and fertiliser application rates have increased by approximately 30% in just the last 15 years. More people are going to need more food, and with global arable land decreasing per capita, the need for higher crop yields will become increasingly important for global food security. These higher yields will remove more nutrients from the soils, increasing the need to be replenished with the use of fertilisers.
About 35% of the world’s SOP production is produced from natural brines via solar evaporation. It is a relatively low-cost, primary production method. Natural brines, such as that being explored for by Trigg Mining, are the only source of SOP to be certified as organic. For organic certification, SOP must come from natural sources with little or no processing, such as solar evaporation.
There are two other, non-organic methods for producing SOP, including sulphate salts reaction and the Mannheim Process.
Given the inelastic nature of the demand for SOP and its exceptional qualities, produce growers are willing to pay a higher price for SOP and it effectively serves a separate market to muriate of potash (MOP), sustaining a price premium over MOP. Price premiums are further supported by the higher cost of manufacturing SOP in the Mannheim Process. By way of illustration, and noting that historic pricing differentials are not a guarantee of future differentials, on 13 September 2018 the stated landed pricing at the Port of Kwinana was $989/t (for SOP) and $618/t (for MOP).
The Company’s main objective is to complete the next exploration and evaluation phase which will involve:
Trigg Mining Limited’s Board has significant expertise in mineral projects, project development and corporate finance:
You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 13 of the prospectus, Trigg Mining Limited is subject to a range of risks, including but not limited to the nature of mineral exploration and exploitation, exploration target, the inability to attract brine volume, climate change and commodity price volatility.
Section 734(6) disclosure: The issuer of the securities isTrigg Mining Limited ACN 168 269 752. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).
OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.
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Trigg Mining Limited (ASX: TMG) is a mineral exploration company focussed on developing a sustainable sulphate of potash (SOP) mine in WA. SOP is an essential fertiliser needed for global food production of high value crops and human nutrition, where it can assist in the prevention of stroke and heart disease. Early exploration work has established a JORC compliant target representing ~15% of the total tenure. The company will have an enterprise value of A$7.1 million at listing. Investors will receive 1 free attaching option for every 2 shares subscribed.
The Lead Manager has confirmed that the company has reached the $5 million min offer size.
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