Potash Ridge Reports $1.6 Million Net Income in 2015 First Quarter Financial Results

Potash Ridge Corporation (TSX:PRK,OTCQX:POTRF) announced its 2015 first quarter financial results, which showed a net income of $1.6 million or $0.02 per share due to a foreign exchange gain of $2.5 million.

As quoted in the press release:

• The Corporation reported net income for the first quarter of $1.6 million ($0.02 per share), due to a foreign exchange gain of $2.5 million, compared with a net loss of $0.3 million($0.00 per share) for the first quarter of 2013.
• The Corporation closed the first quarter of 2015 with cash and cash equivalents of $ 0.5 million and had accounts payable and accrued liabilities of $1.5 million.
• The Corporation noted in its MD&A for the year-ended December 31, 2014, that it was in discussions with the Utah School and Institutional Trust Lands Administration (“SITLA”) regarding the current financial obligations due under the terms of the Mining Lease. Due to the liquidity constraints currently being experienced by the Corporation, the payment owed to SITLA on March 31, 2015 was not made in accordance with the terms of the Mining Lease, resulting in an event of default thereunder. The Corporation’s discussions with SITLA towards a possible amendment to the Mining Lease, contemplating a deferral of payments, are on-going. SITLA has indicated that it has no plans at this time to formally notify the Corporation of a default under the Mining Lease which would trigger a 30 day cure period. In the event that SITLA changes its position and seeks to enforce the terms of the Mining Lease, the Corporation could forfeit its rights to the Project. The Corporation is confident that this matter will be resolved favourably in the near term; however no assurance can be provided that a favourable resolution will be reached with SITLA and on what time frame.

Click here to read the full Potash Ridge Corporation (TSX:PRK,OTCQX:POTRF) press release.