Transit Holdings chairman boosts stake by 50,000 shares in on-market transaction

Transit Holdings (ASX: TRH) chairman Ananda Kathiravelu has increased his indirect stake in the company with an on-market trade.

Kathiravelu purchased 50,000 for a consideration of $26,875, for an average entry price of around $0.54.
Transit is currently in a very interesting exploration position, and earlier in the month was granted approval from the U.S. state of Utah to commence a maiden potash focused drill campaign at the joint venture Paradox Basin Potash project.

The approval was received within two months of filing the application and drilling will begin in July or August, consisting of four exploratory wells to augment a database of historical drilling.

Importantly, the company’s focus is on sylvinite, a high grade form of potash ore that is cheaper and more effective to process to a saleable form than any other form of potash ore.

Transit expects to have a JORC Resource after drilling the four holes and the analysis of subsequent results.
The company and joint venture partner, K2O Utah LLC, are currently preparing the budget and initial drill campaign as part of the project’s Pre–Feasibility Study.

The drill campaign follows a Scoping Study completed by the joint venture based on two million tonnes per annum production of KCl (potassium oxide) from solution mining of the potash deposit. The study demonstrated the project has robust financials.

The exploration target at the project is 2.3 billion tonnes of sylvinite potash ore grading at 32.8% KCl.
The exploration target assumes a grade thickness cut-off of 20% K2O per metre (grade by thickness), below which mineralisation is excluded from the estimate.

The joint venture will begin working on approvals to drill on federal land to further delineate the resource.
Transit holds a 90% stake in the project with K2O Utah LLC holding the remaining interest.

The project covers applications for 386 square kilometres of prospective potash permits in the Paradox Basin in southeast Utah and the project is in close proximity to infrastructure because of surrounding gas fields.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17487/transit-holdings-chairman-boosts-stake-by-50000-shares-in-on-market-transaction-17487.html