Potash Ridge Accomplishes Unconditional Right to Convert Exploration Lease into Mining Lease
May 6, 2013 (Source: Marketwire) Toronto, ON — Potash Ridge Corporation (“Potash Ridge” or the “Corporation”) (TSX:PRK)(OTCQX:POTRF) announced today that it has received confirmation from the State of Utah School and Institutional Trust Land Administration (“SITLA”) that it may proceed with exercising its option under the Exploration and Option Agreement with SITLA dated April 1, 2011. This option allows Potash Ridge to convert its exclusive Exploration Right with respect to its 100%-owned Blawn Mountain Project into a Mineral Lease. The Mineral Lease establishes the terms for mining and operating the Blawn Mountain Property for the production of sulphate of potash and other minerals. The Corporation has until March 31, 2014 to exercise its option, at which time it is required to pay SITLA US$1,020,000.
In its letter, SITLA concluded that the Corporation’s NI 43-101 Technical Report dated November 5, 2012 “meets the requirements of a “Positive Prefeasibility Study”” as defined under the terms of the Exploration and Option Agreement (which differs from the definition under NI 43-101).
SITLA also highlighted in its letter that it “remains impressed with the manner in which Utah Alunite/Potash Ridge has conducted the physical work on the option lands and the professional level of consultants hired to do the technical work”.
Guy Bentinck, Potash Ridge’s President and Chief Executive Officer commented, “Meeting the criteria that allows us the right to convert our Exploration Lease into a Mineral Lease represents an important milestone for Potash Ridge. We are extremely grateful for the support shown by SITLA and the Utah Government as we continue to develop the Blawn Mountain Project.”
The Corporation remains on track to complete its NI 43-101 complaint prefeasibility study by the end of June 2013.
Potash Ridge is a Canadian based exploration and development company with a unique opportunity to develop a SOP and bauxite-type material project into long-term mining production.
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The Company’s Blawn Mountain Project consists of four areas of surface mineable alunite mineralization in the State of Utah. Alunite is a sulfate mineral ore rich in both SOP and alumina.
Located in a mining friendly jurisdiction with established infrastructure nearby, the project covers approximately 11,550 acres of state-owned land and has a known permitting process. Extensive development was completed in the 1970s including a mine plan, feasibility study and 3-year pilot plant operation.
Potash Ridge has a highly qualified and proven management team in place with significant financial, project management and operational experience and the ability to take projects into production.
This press release contains forward-looking statements, which reflect the Corporation’s expectations regarding future growth, results of operations, performance and business prospects. These forward-looking statements may include statements that are predictive in nature, or that depend upon or refer to future events or conditions, and can generally be identified by words such as “may”, “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “guidance” or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts but instead represent the Corporation’s expectations, estimates and projections regarding future events. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the future financial or operating performance of the Corporation and its subsidiaries and its mineral projects; the anticipated results of exploration activities; the estimation of mineral resources; the realization of mineral resource estimates; capital, development, operating and exploration expenditures; costs and timing of the development of the Corporation’s mineral projects; timing of future exploration; requirements for additional capital; climate conditions; government regulation of mining operations; anticipated results of economic and technical studies; environmental matters; receipt of the necessary permits, approvals and licenses in connection with exploration and development activities; appropriation of the necessary water rights and water sources; changes in commodity prices; recruiting and retaining key employees; construction delays; litigation; competition in the mining industry; reclamation expenses; reliability of historical exploration work; reliance on historical information acquired by the Corporation; optimization of technology to be employed by the Corporation; title disputes or claims and other similar matters.
If any of the assumptions or estimates made by management prove to be incorrect, actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such assumptions include, but are not limited to, the following: that general business, economic, competitive, political and social uncertainties remain favorable; that agriculture fertilizers are expected to be a major driver in increasing yields to address demand for premium produce, such as fruits and vegetables, as well as diversified protein rich diets necessitating grains and other animal feed; that actual results of exploration activities justify further studies and development of the Corporation’s mineral projects; that the future prices of minerals remain at levels that justify the exploration and future development and operation of the Corporation’s mineral projects; that there is no failure of plant, equipment or processes to operate as anticipated; that accidents, labour disputes and other risks of the mining industry do not occur; that there are no unanticipated delays in obtaining governmental approvals or financing or in the completion of future studies, development or construction activities; that the actual costs of exploration and studies remain within budgeted amounts; that regulatory and legal requirements required for exploration or development activities do not change in any adverse manner; that input cost assumptions do not change in any adverse manner, as well as those factors discussed in the section entitled “Risk Factors” in the Corporation’s Annual Information Form (AIF) for the year-ended December 2012 found on sedar.com. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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