TORONTO, ONTARIO--(Marketwired - March 25, 2014) - Potash Ridge Corporation (the "Corporation") (TSX:PRK) (OTCQX:POTRF) today announced that it has exercised its option (the "Option") to convert its existing exploration agreement (the "Exploration Agreement") into a long-term mining lease (the "Mining Lease") with its landlord, Utah State School and Institutional Land Trust Administration ("SITLA"), for its flagship Blawn Mountain Project (the "Project").
The Corporation, through its wholly owned subsidiary, Utah Alunite Corporation, entered into the 3-year Exploration Agreement with SITLA in April 2011. The Exploration Agreement provided the Corporation with the right to convert into the Mining Lease upon meeting certain conditions, with an upfront payment to SITLA of US$1,020,000 (the "Option Payment") required upon exercise of the Option. In May 2013, confirmation was received from SITLA that the Corporation had satisfied development conditions to allow for exercise of the Option on or before March 31, 2014.
Concurrent with the exercise of the Option, the Corporation entered into an agreement with SITLA, whereby the upfront payment requirement of $1,020,000 was replaced with an initial payment of US$200,000 plus five equal semi-annual installments of US$164,000 commencing in March 2015. Interest will accrue on unpaid installments at an annual rate of 5.75%.
Guy Bentinck, President & Chief Executive Officer said, "By entering into the Mining Lease we have secured the long-term rights to develop and operate the Blawn Mountain Project. The agreement reached with SITLA demonstrates the strong relationship and support the Corporation has developed with SITLA and the State of Utah."
The Mining Lease has an initial term of ten years (the "Initial Term"). The Mining Lease will remain in effect beyond the Initial Term as long as the Corporation is producing minerals profitably from, or demonstrates diligent exploration, development or operations on, the Project.
About Potash Ridge
Potash Ridge is a Canadian based exploration and development company with a unique opportunity to develop a SOP and alumina rich 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.