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The company capped off the month of August by signing a memorandum of understanding with Tetra Tech and has plenty planned for 2014’s last few months.
Blawn Mountain project, Utah.
Potash Investing News (PIN) last checked in with Canada’s Potash Ridge (TSX:PRK,OTCQX:POTRF) back in July, when the Utah Division of Oil, Gas and Mining approved its notice of intention to start large mining operations at the Blawn Mountain sulfate of potash project.
It hasn’t even been two months since the company received that permit, but already Potash Ridge has made even more progress at Blawn Mountain, which is located in Southern Utah. For instance, it’s released its Q2 financial results and officially received the permit mentioned above, as well as its groundwater discharge permit — though both were subject to 30-day comment periods, no objections were raised.
Tetra Tech MOU
Most significant, however, is last week’s announcement that Potash Ridge has signed a memorandum of understanding (MOU) with Tetra Tech for a long-term strategic relationship to develop Blawn Mountain. According to the company’s press release, the MOU will see Tetra Tech start a feasibility study on the project “later this year, subject to successfully raising additional financing.”
Blawn Mountain project, Utah.
Additionally, under the MOU Tetra Tech will be the engineering, procurement and construction management contractor for Blawn Mountain “on a right of first offer basis.” The agreement also contemplates Tetra Tech being involved in build-own-operate (BOO) arrangements for “various infrastructure arrangements,” possibly including water treatment and sulfuric acid plants.
Commenting positively on the arrangement, Guy Bentinck, president and CEO of Potash Ridge, said, “[t]his partnership combines our world class sulphate of potash project with a leading provider of consulting, engineering and construction management. Tetra Tech’s willingness to participate in BOO arrangements for infrastructure assets represents our Project’s first long-term strategic alliance and is a major positive step in our project financing strategy.”
What’s next?
As mentioned, Potash Ridge intends to begin a feasibility study on Blawn Mountain later this year, though a financing will have to precede it. When the study does get started, it will include drilling at Area 3 and Area 4 of the project — according to Niall Murphy, Potash Ridge’s corporate controller, that’s significant because drilling has thus far only taken place at Area 1 and Area 1. The company hopes that the new focus will “further increase [Blawn Mountain’s] reserves based on verifying data from historical drill campaigns,” he said.
Concurrent to the feasibility study, Potash Ridge will also be working on modeling for its air permit application. The air permit is the only major permit the company still needs for Blawn Mountain, meaning that applying for it will be a big milestone.
Finally, the company is in the midst of lining up offtake, infrastructure and commercial arrangements for the project and “continues to analyze potential markets for the alumina rich material, which will be produced as a by-product of SOP production,” as per its Q2 results release.
Investor takeaway
It’s certainly been a productive summer for Potash Ridge, and if the company’s plans pan out as its expects, the fall will be the same. Investors will certainly have to stay tuned for further developments.
At close of day Friday, shares of Potash Ridge were selling for $0.25 each. Their 52-week low is $0.10 while their high for the same period is $0.45.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Potash Ridge is a client of the Investing News Network. This article is not paid-for content.
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