Wednesday, July 11, 2012
Potash projects press forward
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.
at 8:45 PM