Announcement PDF ASX Announcement 31 JULY 2019 ___________________________________________________________________________________________ PARKWAY MINERALS NL JUNE 2019 QUARTERLY REPORT COMPANY DETAILS ABN: 62 147 346 334 PRINCIPAL AND REGISTERED OFFICE Parkway Minerals NL Level 1, 675 Murray St. West Perth WA 6005 POSTAL ADDRESS PO Box 1088 West Perth WA 6872 W www.parkwayminerals.com.au E info@parkwayminerals.com.au P +61 8 9479 5386 F +61 8 9475 0847 ASX CODE PWN FRANKFURT CODE A1JH27 Parkway Minerals (“Parkway” or “The Company”) is pleased to provide an update of activities for the June 2019 quarter. HIGHLIGHTS Davenport Resources (44.3 Million shares held, 31%)  An Inferred Resource of 1.5 Billion tonnes announced on Küllstedt exploration licence.  Total Inferred Resource at South Harz now 4.9 Billion tonnes @ 10.6% K2O, including 1.6 Billion tonnes of silvinite @ 13.1%. Dandaragan Trough Project  No activity Lake Seabrook  Surface brine samples returned encouraging brine assays of over 4,000mg/L potassium Strategic Investment  PWN owns 6.5 Million Lithium Australia shares. CORPORATE INFORMATION 31 July 2019 634M Ordinary shares 123M Partly paid shares 68M Unlisted options BOARD OF DIRECTORS Adrian Griffin (Non‐Executive Chairman) Patrick McManus (Managing Director) Natalia Streltsova (Non‐Executive Director) 1 Parkway Minerals NL – Quarterly Report JULY 2019 DAVENPORT RESOURCES Davenport Resources (DAV) is focused on the development of the South Harz potash field in Thuringia, Central Germany. Davenport owns 2 exploration and 3 mining licences (figures 1 & 2). The mining licences were purchased from the German Government in late 2017 (ASX release 25 October 2017) and are perpetual, with no expenditure or royalty commitments. The mining licences were subject to detailed drilling in 1960s and 80s, when the field was owned by the State‐owned Potash Mining Corporation of East Germany. Data from over 150 drill holes is available. Figure 1: South Harz Project Location Review of the drill data is in progress and has allowed reporting of significant historic (Soviet era) resources. The quality of the drilling information is high, and Davenport is working to update the resources to JORC 2012 compliance. JORC compliant Inferred Resources now total close to 5B tonnes as shown in table 1. 2 Parkway Minerals NL – Quarterly Report LICENCE JULY 2019 TONNES, Millions %K2O EBELEBEN Sylvinite 324 Carnallatite 253 MUHLHAUSEN/KÜLLSTEDT Sylvinite 1,268 Carnallatite 3,098 TOTAL 4,943 Table 1 South Harz JORC Inferred Resources 15.6 7.5 12.5 9.6 10.6 Evaluation of some of the resource areas is now in progress. Figure 2: Location of Davenport mining and exploration licences LAKE SEABROOK Lake Seabrook consists of 5 exploration licences covering a Salt Lake close to the Koolyanobbing iron ore mining area, straddling the Perth to Kalgoorlie rail‐line (figure 3). Lake Seabrook is a large paleovalley salt lake that overlies a basement of granite and greenstone rocks of Archaen age. 3 Parkway Minerals NL – Quarterly Report JULY 2019 Figure 3: Lake Seabrook exploration licences A sampling programme was conducted on the lake from a traverse across the centre (refer ASX release 11 June 2019). Brine samples were taken from shallow holes on the surface of the lake and assayed for potassium (K). Figure 4 shows the sample location and brine assay. A peak assay of 4.2 gm/litre was considered encouraging. Figure 4: Lake Seabrook assay values 4 Parkway Minerals NL – Quarterly Report JULY 2019 DANDARAGAN TROUGH PROJECT Parkway holds 100% of the Dinner Hill Potash and Phosphate Deposit, located some 200km north of Perth in Western Australia, (Figure 5). Dinner Hill forms part of the larger Dandaragan Trough Project (DTP), where Parkway holds over 100km2 of exploration tenure. Sedimentary sequences within the trough contain glauconite, a potash rich mica, and phosphate nodules. The objective is to produce phosphate and sulphate of potash fertilisers and a range of valuable by‐products from the phosphate and glauconite present within the sediments of the Dandaragan Trough. The Dinner Hill Project covers some 40 km2 within the DTP. The DTP has unique advantages of excellent connectivity to transport facilities, infrastructure and proximity to local and regional markets. It is located within an easy drive from Perth, and is less than 200km from two major bulk export ports, Kwinana and Geraldton. It is well situated in relation to major project infrastructure, and significant local and regional markets for its products. Figure 5: Location plan, Dandaragan Trough Project Dinner Hill Resource Statement The resources for the Dinner Hill project were recalculated and reported to ASX on 26 September 2017. The resources cover an area of approximately 40 km2 and are shown in table 1. 5 Parkway Minerals NL – Quarterly Report JULY 2019 DINNER HILL RESOURCE Table1 Dinner Hill Deposit: Resource Summary Resource Category Phosphate Indicated Inferred Total Tonnes (Mt) 160 470 630 Indicated Inferred Total 160 470 630 4.2 4.4 4.4 Potash Resource outside the Phosphate Resource area Indicated Inferred Total 50 230 280 2.65 2.6 2.6 Total Potash Resources Indicated Inferred Totals 210 700 910 3.8 3.8 3.8 Potash Potash Resources included within the Phosphate Resource area P2O5 (%) 2.45 1.7 1.85 K2O (%) Note: Totals may differ from sum of individual items due to rounding SHAREHOLDINGS Parkway owns shares in the following ASX listed Companies: Lithium Australia (ASX: LIT) 6.47 M Davenport (ASX: DAV) 44.3 M CORPORATE Parkway monitors activities and opportunities that may be relevant to the Company’s objectives. This may include expanding or changing the scope of existing projects or engaging with third parties on other projects. If a proposal advances, details would be announced in accordance with the Company’s continuous disclosure obligations. ANNOUNCEMENTS The following ASX announcements were made during the quarter: 1 Jun 2019 18 Apr 2019 Lake Seabrook Project Returns Encouraging Potash Values Quarterly Activities and Cashflow Report The following ASX announcements were made subsequent to the end of the quarter: 23 July 2019 Appendix 3B, issue of shares 6 Parkway Minerals NL – Quarterly Report JULY 2019 CASH ON HAND At 30 June 2019, $0.14 million cash and $ 0.4 million of liquid assets was available. For further information contact: Parkway Minerals NL: Patrick McManus Managing Director Tel: +61 (08) 9479 5386 Email: info@parkwayminerals.com.au Web: www.parkwayminerals.com.au Competent Person’s Statement: Dandaragan Trough Project Information in this announcement that relate to Mineral Resources, are based on, and fairly represent, the Mineral Resource and supporting documentation extracted from the reports which have been prepared by a Competent Person in compliance with the JORC Code (2012) and released to ASX by the Company on 26 September 2017 and 28 September 2017. Parkway Minerals confirms that it is not aware of any new information or data that materially affect the information included in the original announcements. All material assumptions and technical parameters underpinning the Mineral Resource estimate in those previous ASX releases continue to apply and have not materially changed. The Company further confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Details of Mining Tenements at 31st June 2019, ASX Listing Rule 5.3.3 Australian Project Tenement ID Name Location State Interest E70/3987 Dinner Hill Dandaragan WA 100% E70/4137 Jam Hill Dandaragan WA 100% E70/4609 Dandaragan Dandaragan WA 100% E70/5102 Dandaragan Dandaragan WA 100% E77/2529 Lake Seabrook Lake Seabrook WA 100% E77/2532 Lake Seabrook South Lake Seabrook WA 100% E77/2533 Lake Seabrook North Lake Seabrook WA 100% E77/2537 Lake Seabrook Lake Seabrook WA 100% E77/2563 Lake Seabrook Lake Seabrook WA 100% 7 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report +Rule 5.5 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Introduced 01/07/96 Origin Appendix & Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16 Name of entity Parkway Minerals NL ABN Quarter ended (“current quarter”) 62 147 346 334 30 June 2019 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Current quarter $A’000 Year to date (12 months) $A’000 22 132 (72) (548) (d) staff costs (71) (268) (e) administration and corporate costs (138) (512) - 5 (a) exploration & evaluation (b) development (c) production 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds - 70 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (259) (1,121) 2. Cash flows from investing activities 2.1 Payments to acquire: (3) (3) - - (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets + See chapter 19 for defined terms 1 September 2016 Page 1 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Consolidated statement of cash flows 2.2 Current quarter $A’000 Year to date (12 months) $A’000 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments 16 52 13 49 - 69 (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities 3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (Equity Raising Costs) - (22) 3.10 Net cash from / (used in) financing activities - 47 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 386 1,165 (259) (1,121) 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 13 49 4.4 Net cash from / (used in) financing activities (item 3.10 above) - 47 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period 140 140 + See chapter 19 for defined terms 1 September 2016 Page 2 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 5. Reconciliation of cash and cash equivalents Current quarter $A’000 Previous quarter $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 120 366 5.2 Call deposits 20 20 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 140 386 6. Payments to directors of the entity and their associates 6.1 Aggregate amount of payments to these parties included in item 1.2 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 Current quarter $A'000 71 Item 1.23 relates to Directors Remuneration, Directors Fees and Superannuation Contributions. Current quarter $A'000 7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 + See chapter 19 for defined terms 1 September 2016 Page 3 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (sale of liquid investments) 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. 9. Estimated cash outflows for next quarter 9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 75 9.5 Administration and corporate costs 90 9.6 Other (provide details if material) 9.7 Total estimated cash outflows 10. Changes in tenements (items 2.1(b) and 2.2(b) above) Tenement reference and location 10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced E70/4138 10.2 Interests in mining tenements and petroleum tenements acquired or increased + See chapter 19 for defined terms 1 September 2016 400 $A’000 50 215 Nature of interest SURRENDER Interest at beginning of quarter Interest at end of quarter 100% 0% Page 4 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Sign here: Date: 31 July 2019 (Director/Company secretary) Print name: Patrick McManus Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. + See chapter 19 for defined terms 1 September 2016 Page 5