BHP Billiton has announced it will invest $358 million in the acquisition of Canadian junior potash company, Athabasca Potash (API).
Acquiring API will BHP access to the Burr project and various potash exploration properties in Saskatchewan, Canada. API also holds one of the largest exploration permit areas in the Saskatchewan basin, covering approximately 6,900 square kilometres.
The Burr project is located adjacent to BHP Billiton's Jansen project, while some of API's exploration properties neighbour BHP Billiton's potash permit areas. This acquisition will also mean BHP Billiton will have a total of more than 14,000 square kilometres of prospective exploration ground in the world-class Saskatchewan potash basin.
BHP Billiton Diamonds & Specialty Products president Graham Kerr says it a strategic move for the company.
"Today's announcement is consistent with BHP Billiton's strategy of building a strong potash resource position,” he says.
“This acquisition fits well with our existing projects and land positions in the Saskatchewan potash basin."
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