Wednesday, July 11, 2012

Potash projects press forward

Observers are noting with interest the news that Prospect Global Resources, parent of American West Potash, sold 15.4 million shares of common stock at a price to the public of $2.60 per share for net proceeds of approximately $36.8 million.   The money is intended to pay for the acquisition of the Karlsson Group's 50% interest in American West Potash LLC, "to fund the preparation of a bankable feasibility study, and for permitting and environmental, engineering and general corporate purposes."   This is considered a key step towards development of a proposed 2 - 2.5 million tonnes per year underground potash mine in the Holbrook area.  [Right, cross section of Supai salt with potash layer in red. From AZGS Open-file Report 08-04]

Meanwhile, in a promotional interview with Passport Potash Chairman David Salisbury, he advises that the company is waiting completion of a Preliminary Economic Analysis (PEA) for their project. "Upon completion of the PEA, work will begin immediately to advance the PEA into a pre-feasibility study."   Salisbury offered that a bankable feasibility study could bring in the investments leading to potash production in early 2016.

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