East Exploration Pty Ltd. entered into a binding term sheet to acquire Davenport Resources Pty Ltd. in a reverse merger transaction on August 18, 2015. Under the terms of agreement, the consideration to be paid includes 36.46 million fully paid ordinary Davenport shares at listing price of AUD 0.20 cents per share, plus 67.71 million performance shares, which will convert to ordinary shares on achieving pre-determined project milestones. At listing, Potash West will receive 19.25 million shares for 55% stake being sold, expected to be 28% of the issued capital of Davenport. The consideration for the acquisition of East Exploration will be the issue of 36.46 million fully paid ordinary Davenport shares plus two tranches of 33.85 million performance shares each which will be subject to the milestones including Davenport will pay an option and exclusivity fee to East Exploration of AUD 0.25 million, the first AUD 0.12 million of which is payable within 5 business days of signing the term sheet with the balance payable by November 1, 2015 subject to prior satisfactory completion of due diligence. The option and exclusivity fee amount is to be applied by East Exploration solely to maintaining and advancing the South Harz Potash Project and does not form part of the consideration payable to the vendors of East Exploration. The milestones applicable to the two tranches of performance shares are Tranche 1 performance shares which would take place when the announcement to ASX is made by Davenport within four (4) years after completion of the transaction of the first JORC Code compliant Inferred Resource of one of the following as 250 million tons of Potash at or above 11.0% K2O by content, or 150 million tons of Potash at or above 12.0% K2O by content, or 100 million tons of Potash at or above 13% K2O by content, or 75 million tons of Potash at or above 15% K2O by content, or 50 million tons of Potash at or above 18% K2O by content. Issue of Tranche 2 performance shares would take place after the announcement to ASX by Davenport within six (6) years after completion of the transaction of satisfaction of all mining approvals and utility contracts required to construct and operate a minimum of 500,000 ton per annum potash mine on the project (including all Government approvals, water and energy contracts necessary to operate the mine). Upon and subject to completion of the acquisition, East Exploration will be entitled to appoint 2 suitably qualified Directors to the Board of Davenport, one of whom will be the Chairperson. Angus Edgar will remain as a non-executive Director of Davenport. East Exploration and Davenport will jointly select and appoint a Managing Director to the Board of Davenport. The transaction is subject to conditions including listing on ASX subject to satisfying conditions of Term Sheet, entry into formal documentation by East Exploration’s shareholders for the sale of their shares, the proposed seed capital placement and initial public offering by Davenport, Arunta Resources Limited (ASX:AJR), Davenport and Potash West NL shareholder approvals, demerger of Davenport by Arunta Resources and regulatory approvals. The acquisition will occur after, and subject to, the proposed demerger of Davenport from Arunta. Arunta Resources Limits has completed its due diligence investigations in respect to the acquisition on September 24, 2015. As announced on July 18, 2016, Potash West is still in the process of closing the transaction. Colin Hay of Professional Public Relations acted as Public Relations advisor for Potash West NL. East Exploration Pty Ltd. completed the acquisition of Davenport Resources Pty Ltd. in a reverse merger transaction on January 9, 2017. The shareholders of East Exploration obtained accounting control of the Davenport Resources. All conditions fulfilled have been fulfilled.