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Potash Ridge provides update on projects

Published by , Digital Assistant Editor
World Fertilizer,

The company continues to advance its Blawn Mountain Project in Utah, a world class sulphate of potash development project.

Guy Bentinck, President and CEO, stated: "Since November of last year, we have raised CAN$3.8 million in three capital raises to advance our 100%-owned Valleyfield and Blawn Mountain sulphate of potash projects. Sulphate of potash has been one of the best performing commodities over the last few years, and there has been strong investor interest in each of our capital raises, which demonstrates the compelling nature of our projects."

The proceeds of the recent capital raises will allow the Corporation to advance the Valleyfield Project in Quebec and the Blawn Mountain Project in Utah, as highlighted below, and provide sufficient working capital for beyond the end of 2016.

Valleyfield Project

In April 2016, SNC completed a capital and operating budget study. SNC estimated the total capital cost of the Valleyfield facility to be CAN$48.8 million for a 40 000 tpy sulphate of potash facility. Based on SNC's Valleyfield Study, the Corporation projects an after-tax net present value of CAN$67 million, assuming a 10% discount rate, and an unlevered after-tax rate of return of 32.5%.

Negotiations are advancing on various commercial matters related to Valleyfield, including input commodity supply arrangements, offtake agreements, and project financing. On project financing, discussions have already commenced with multiple parties.

Detailed engineering and permitting work for Valleyfield are expected to commence shortly.

Assuming successful completion of commercial and other project matters, the Corporation expects to break ground on construction in late 2016.

Blawn Mountain Project

The company continues to advance its Blawn Mountain Project in Utah, a world class sulphate of potash development project.

In this regard, the Corporation intends to engage an engineering company shortly to assess the potential of phasing the development, with the initial phase at a more modest scale than what was contemplated in the Prefeasibility Study, thereby reducing the upfront capital cost. It is anticipated that the results of this study will be completed during 3Q16.

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