Press release from Marketwire
Potash Ridge Reports Second Quarter 2013 Results and Provides Blawn Mountain Project Update
Thursday, August 01, 2013
Potash Ridge Reports Second Quarter 2013 Results and Provides Blawn Mountain Project Update09:00 EDT Thursday, August 01, 2013
TORONTO, ONTARIO--(Marketwired - Aug. 1, 2013) - Potash Ridge Corporation ("Potash Ridge" or the "Corporation") (TSX:PRK)(OTCQX:POTRF) today released its second quarter financial results and provided an update on its 100%-owned Blawn Mountain Project (the "Project").
Q2-2013 Financial Results
- The Corporation reported a net loss for the second quarter of 2013 of $0.8 million ($0.01 per share) compared with a net loss of $0.5 million ($0.01 per share) for the second quarter of 2012.
- A total of $3.4 million was incurred on project activities during the second quarter compared with $0.7 million on project activities for the second quarter of 2012. Most of the spending during the second quarter related to the Prefeasibility Study, permitting activities and metallurgical test work.
- The Corporation closed the second quarter of 2013 with cash and short-term investments of $14.0 million.
Second quarter unaudited Financial Statements and Management's Discussion & Analysis are available at www.sedar.com
Key Milestones During the Second Quarter
- A significant amount of metallurgical test work was completed during the quarter in support of the Prefeasibility Study. In May, pilot scale testing commenced and is focused on confirming historic test work and process optimization to maximize SOP recoveries.
- The Corporation announced in June that it had produced sulphate of potash ("SOP") from alunite using the proposed flowsheet.
- Permitting work continues on track, with several advances during the quarter, including completion of a significant number of field surveys.
- Subsequent to quarter end, the Corporation was informed that a federal application by Beaver County to improve an existing road was granted. This marks a major milestone for the Project, as the road provides the Corporation with the access required for development and operation of the Project.
There has been a lot of market activity in the last two days in the potash sector, in light of this week's announcement from Uralkali that they are exiting from the sales organization Belarusian Potash Co. ("BPC"). Potash Ridge believes the downward pressure on stocks is a reaction to uncertainties in the future supply and pricing for muriate of potash ("MOP"). The Corporation believes that the overall positive long term outlook for potash has not changed with growing global population, decreasing arable lands and changing diets in developing countries.
Potash Ridge is planning to produce sulphate of potash ("SOP"), a premium priced potash distinct from MOP. SOP is used on high value crops such as fruits, nuts and vegetables compared with MOP, which is usually applied to row crops. To the best of the Corporation's knowledge, Uralkali does not produce SOP. Demand for SOP continues to be robust with healthy pricing premiums over MOP, with the SOP pricing experiencing an upward trend as reported by the industry operators.
The Corporation is working towards its major upcoming milestones, including completion of the Prefeasibility Study, completion of its metallurgical test program and filing the Large Mining Permit.
On the permitting front, remaining environmental baseline reports and surveys are expected to be completed by late 2013.
A comprehensive analysis of SOP markets by Serecon is underway and expected to be completed later this month.
The Corporation continues to prudently manage its cash position. Sufficient working capital exists to complete the Prefeasibility Study, the metallurgical test program, file the Large Mining Permit Application and continue operations throughout 2014. In the event sufficient capital is raised subsequent to filing of the Prefeasibility Study, the Corporation will immediately commence work on the Bankable Feasibility Study.
All scientific and technical disclosure in this press release have been prepared under the supervision of Ravi Nath, a consultant to Potash Ridge who is a Qualified Person within the meaning of National Instrument 43-101.
About Potash Ridge
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.
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 15,404 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Potash Ridge Corporation
Manager of Investor Relations
416.362.8640 ext. 101