TORONTO, ONTARIO–(Marketwired – Nov. 17, 2014) – Potash Ridge Corporation (“Potash Ridge” or the “Corporation”) (TSX:PRK)(OTCQX:POTRF) today announced the results of an independent economic impact analysis (the “Analysis”) for its 100%-owned Blawn Mountain Project (the “Project”).
The Analysis, commissioned by Potash Ridge, was completed by Louis Berger, an international professional services company with extensive experience in completing these types of analyses.
The Analysis sets out the anticipated economic benefits of the Project to the State of Utah and the local counties (Beaver County and Iron County) during the expected construction and operation stages. In total, the construction phase of the Project will generate approximately 7,300 jobs in Utah, with about 4,550 of those jobs benefitting the surrounding counties. The total Gross Regional Product (“GRP”) will exceed US$1.1 billion per annum in Utah during the construction phase through direct, indirect and induced impacts.
The Analysis anticipates that subsequent mine and plant operations will generate on average 3,100 jobs per year in Utah during the Project’s 40-year mine life, with over half being employed within Beaver and Iron Counties. The GRP in Utah throughout the operations stage is expected to be US$375 million per annum, with US$230 million to be generated in the local economy.
Guy Bentinck, President and Chief Executive Officer said, “We are delighted to share the results of this Analysis and highlight the significant economic impact that our Project is expected to have locally and in the state. Additionally, the Project will provide an annual revenue stream for Utah public schools through royalty payments, which will directly benefit current and future generations of school kids in the state. We look forward to building on our strong partnership with the School and Institutional Trust Lands Administration (“SITLA”) as we continue to advance our Project.”
The results of the Analysis has also solicited expressions of support for the Project from numerous key stakeholders.
Lt. Governor Spencer J. Cox commented, “The partnership between Potash Ridge and SITLA to develop the Blawn Mountain Project is a prime example of why Utah is a great place to do business. Thanks to the vision and leadership of Beaver and Iron County Commissioners, SITLA and others, we have an exciting opportunity before us. This Project will bring a significant number of high paying jobs to rural Utah and other parts of our state. The Governor is very pleased with the progress that has occurred and is encouraged that, with the experience of the Potash Ridge management team in developing large-scale mining projects, we will see this project in full operation.”
Kevin S. Carter, Director of SITLA said, “The impact of this Project on behalf of the public education system will be nothing short of tremendous. To put it in perspective, projected annual royalties of US$28.7 million represent nearly one-fourth of our agency’s total earnings currently generated each year from literally thousands of leases and other business transactions. Such projected trust land earnings from a singular lessee is unprecedented.”
Beaver County Commissioner, Mark Whitney said, “Potash Ridge’s Blawn Mountain Project is a world-class operation. We are very pleased with the achievements made by the Corporation in expediting development of the Project. Blawn Mountain is slated to boost Utah’s economy by several billion dollars over the next 40 years and provide large-scale economic development in economically underserved areas in Beaver and Iron County.”
Beaver County Commissioner, Mike Dalton commented, “The Blawn Mountain Project has achieved several major permitting milestones since its inception, reflecting the strength of the management team to work in unison with state and local government representatives. Potash Ridge has invested and continues to invest millions of dollars into the Project, which shows their level of commitment.”
Iron County Commissioners Adams, Brinkerhoff and Miller commented, “Iron County enthusiastically supports the prospect of Potash Ridge developing the Blawn Mountain Project in neighboring Beaver County. This project has tremendous appeal economically as a primary sector industry that will create thousands of jobs in Beaver and Iron County. We are pleased to see the efforts of Potash Ridge advance this Project and again express our desire to see it succeed.”
The Analysis, which is available on Potash Ridge’s website, contains forward looking statements and is subject to a number of estimates and assumptions. If any of these assumptions or estimates prove to be incorrect, actual results and developments are likely to differ, and may differ materially, from those expressed above. See “Forward Looking Statements” below for a description of certain material estimates and assumptions.
About Potash Ridge
Potash Ridge is a Canadian based exploration and development company focused on developing a surface alunite deposit in southern Utah called the Blawn Mountain Project. It is expected to produce a premium fertilizer called sulphate of potash (“SOP”) and a possible alumina rich material.
Located in Utah, a mining friendly jurisdiction with established infrastructure nearby, the Project is expected to produce an average of 645,000 tons of SOP per annum over a 40-year proven and probable reserve life. A NI 43-101 compliant Prefeasibility Study completed in November 2013 by Norwest Corporation demonstrated that the Project is both technically and economically viable. The Prefeasibility Study, entitled “NI 43-101 Technical Report Resources and Reserves of the Blawn Mountain Project, Beaver County, Utah” dated November 6, 2013 is available on SEDAR.
Potash Ridge has a highly qualified and proven management team with significant financial, project management and operational experience and the proven 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 31, 2013 available at 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.