Prospect Global Resources Restructures Debt to Move Ahead with Holbrook Potash Mine

Prospect Global Resources, Inc. (NASDAQ:PGRX) announced that they have restructured their long-term debt with the Karlsson Group, which will assist with their plans to build the potash mine in the Holbrook Basin.

As quoted in the press release:

Key highlights include:

• Debt maturity extended to July 2015; interim principal payment of $30 million due January 2015
• Interim payments to KG decreased to 10% of any capital raised after $10 million of capital raised (previously 40% of any capital raised)
• Restructured $6.75 million Unsecured Notes from 3^rd party to extend maturity dates, and reduced interim capital payments to 10% of any capital raised after $10 million of capital raised (previously 33% of any capital raised)
• The Company is required to meet interim financing milestones to fund the continued development of the Holbrook Basin project

Prospect’s President and CEO, Damon Barber, said:

The restructuring of our debt marks a significant step forward for the company. Despite the recent volatility in our stock price, we believe that we are now well positioned to move forward in building long-term value for all shareholders.

To view the whole press release, click here.