Market Update: Potash Ridge Cashes in with $20 Million IPO

The potash market was shaken up on Wednesday when Canada’s Potash Ridge (TSX:PRK) generated $20 million through the initial public offering (IPO) of its common shares.

Most of the money will go toward developing the company’s Utah-based Blawn Mountain sulphate of potash (SOP) project. The 11,550-acre project is close to the infrastructure required for its construction and operation, and is made up of four areas that include surface-mineable alunite, which is rich in SOP. Most importantly, Potash Ridge’s website notes, the project is supported by both the municipality and the state.

The company anticipates that completion of a prefeasibility study and issuance of a NI 43-101 technical report for the project will both occur in the second quarter of 2013.

Additionally, as part of the IPO, Potash Ridge entered into a private placement with Sprott Resource Partnership. That leaves Sprott with 16,144,746 common shares of Potash Ridge, according to a statement released by Sprott.

Potash Ridge’s positive news indicates that perhaps favorable 2013 forecasts from major potash market players like Russia’s Uralkali and Potash Corporation of Saskatchewan (TSX:POT) are not unrealistic.