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Allana Resources Announces Joint Venture With Government-Owned Exploration and Development Organization in China and Announces Private Placement Finan
Mon Jul 20, 1:44 PM
http://ca.news.finance.yahoo.com/s/20072009/28/link-f-ccnmatthews-allana-resources-announces-joint-venture-government-owned-exploration.html
TORONTO, ONTARIO--(Marketwire - July 20, 2009) - Allana Resources Inc. (TSX VENTURE: AAA.V) ("Allana" or the "Company"), is pleased to announce the signing of a memorandum of understanding setting out the principle terms and conditions of a joint venture between Allana and one of the largest government-owned exploration and development organizations in China ("ChinaCo") with respect to the financing of exploration works, feasibility study, construction of a solution mine and processing plant and production at Allana's Potash project in the Danakil Depression in Ethiopia (the "Joint Venture").
Pursuant to the Joint Venture, ChinaCo shall be responsible for financing 70% of the costs of the Joint Venture with Allana maintaining responsibility for the remaining 30%. ChinaCo will have to spend 70% of the total project costs at all stages including solution mine and processing plant construction costs in order to earn 70% of the project.
In addition, the terms of the Joint Venture provide for ChinaCo to participate in a private placement financing, pursuant to which Allana shall issue up to 19.99% of its issued and outstanding shares to ChinaCo. at $0.25 per share (the "Offering Price") for approximate total gross proceeds of CAD$4,500,000 maximum to Allana (the "Offering"). ChinaCo will appoint one director to Allana's board.
Closing of the Offering is anticipated to occur within three weeks of the signing of a definitive agreement and the transfer of 100% of the exploration permits from the current owners to Allana or as soon as practicable (the "Closing Date") and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The common shares issuable are subject to resale restrictions for a period of four months plus one day from the Closing Date.
The net proceeds of the financing will be used to fund exploration and development of Allana's potash project in Ethiopia.
In connection with the Offering, Allana has agreed to pay a finder's fee in the amount of 8% cash and issue finders' warrants that shall entitle the finder to acquire that number of common shares of Allana equal to 3% of the shares issued pursuant to the Offering for a period of five years at a price to be determined in the context of the market and regulatory requirements, but in no event shall it be greater than 125% of the Offering Price.
Farhad Abasov, the President and CEO of Allana, said "We are very pleased to announce this joint venture as this agreement could pave the way to the establishment of one of the first potash production centres in Africa. Our long-term relationship with this partner will provide not only the necessary capital but also significant technical expertise critical for the development of our potash project in Ethiopia. Our future partner is one of China's largest government -owned exploration and development organizations with over 10,000 employees and dozens of projects throughout China and number of foreign countries, including Ethiopia. We view this joint venture as a key strategic step in developing long-term partnerships with China-based mining and fertilizer organizations."
Closing of the Joint Venture remains subject to several conditions, including without limitation, approval of regulatory authorities in both countries, including the TSX Venture Exchange, the completion of due diligence and the signing of a Definitive Agreement, which Allana anticipates occurring on or before September 14, 2009.
Peter J. MacLean, Ph.D., P. Geo., Allana's VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.
About Allana Resources Inc.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally and recently optioned a previously explored potash property in Ethiopia with NI 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (see News Release Sept. 17, 2008). Allana has approximately 80.2 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".
Forward-Looking Statement
Except for statements of historical fact relating to the Company, certain information contained herein constitutes ''forward-looking information'' under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect of the investment, the proposed terms of the joint venture, the terms of the financing, estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; limitations on insurance and the receipt of all required regulatory approvals. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts
Farhad Abasov
Allana Resources Inc.
416 309-2691
fabasov@allanaresources.com
Peter MacLean
Allana Resources Inc.
416 861-2262
peter@allanaresources.com
Athabasca Potash forms committee to evaluate proposals for Burr project
http://www.miningweekly.com/article/athabasca-potash-forms-committee-to-evaluate-proposals-for-burr-project-2009-07-16
By: Esmarie Swanepoel
16th July 2009
JOHANNESBURG (miningweekly.com) – Canadian potash explorer Athabasca Potash (API) has established a special committee to consider and evaluate proposals for the development of its Burr project, in Saskatchewan, as a low-cost conventional potash mine.
API said it had broadly solicited expressions of interest from qualified third parties in respect of a strategic alliance to develop the Burr project and reported that it had held in-depth discussions and meetings with many of these parties to advance a possible alliance.
In response to initial indications of interest received from third parties, API has expanded the scope of transactions it was considering from joint ventures and other forms of direct participation in the development and financing of the Burr project, to include potential mergers or potential acquisitions of all or a portion of the company or its business.
"We are committed to delivering value to our shareholders in the most efficient way possible," said special committee chairperson John King Burns.
"With the definition of a measured and indicated mineral resource of 425-million tons at the Burr project and the advancement of work on our upcoming prefeasibility study, API believes it is well-positioned to actively seek out a strategic alliance with an established, global industry player to support development of the Burr project.”
Burns added that during the company’s efforts to advance an alliance, however, it had also became clear that it might need to consider a broader range of transactional structures that were being presented to us and which might provide value to its shareholders.
"API has a number of potential opportunities arising during its search for a potential strategic alliance which need to be advanced. I am fully committed to working in the best interest of API and its shareholders," said API founder Dawn Zhou.
Mosaic Climbs After Report Vale May Bid $25 Billion (Update2)
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By Helder Marinho and Christopher Donville
July 16 (Bloomberg) -- Mosaic Co., North America’s second- largest fertilizer producer, rose the most in eight months in New York after a Brazilian newspaper reported that Vale SA is preparing a $25 billion bid for the company. Vale shares fell.
Mosaic jumped 13 percent to $50.43 as of 10:41 a.m. on the New York Stock Exchange. Vale, the world’s biggest iron-ore miner, fell 2.3 percent to $17.65, the most since July 7. Vale’s Brazilian shares declined 1.1 percent to 29.84 reais.
A five-year rally that has pushed prices of potash, a raw material used to make fertilizers, up more than 300 percent has fueled speculation that Mosaic would be acquired. O Estado de S. Paulo reported, without saying how it obtained the information, that Vale and BHP Billiton Ltd. are both interested in purchasing the company.
“Mosaic is a little more than what I was expecting,” said Marcel Varejao, who covers Vale as an analyst at Sociedade Corretora Paulista, a Sao Paulo-based brokerage. “In a time like this, strategic acquisitions are seen as positive in the long run.”
Fernando Thompson, a spokesman for Rio de Janeiro-based Vale, said the company doesn’t comment on market speculation. Linda Thrasher, a spokeswoman for Mosaic and Lisa Clemens, a spokeswoman for Cargill Inc., which owns about 64 percent of Mosaic, both declined to comment.
Buyout Targets
“We wouldn’t comment on speculation or market rumor,” BHP’s London-based spokesman Illtud Harri said in an e-mail response when asked for comment.
Mosaic has been the subject of speculation this year that it may be acquired by Melbourne-based BHP, which said in February it may expand its investments in potash. Vale agreed in January to pay Rio Tinto Group $850 million for potash projects in Argentina and Canada.
Potash is a form of potassium, a primary agricultural nutrient with phosphorus and nitrogen. Companies such as Potash Corp., Agrium Inc. and Mosaic mine the material.
Companies including Mosaic and Potash Corp. of Saskatchewan Inc., the world’s largest producer of its namesake crop nutrient, are attractive buyout targets because they have existing mines, Terence Ortslan, a mining analyst at TSO & Associates in Montreal, said in an interview last month.
Mosaic is the world’s largest maker of finished phosphate products and the second-largest producer of potash by capacity, according to the company Web site. It has three potash mines in Saskatchewan, one in New Mexico and another in Michigan. The company also mines phosphate rock in Florida.
Vale denied last month it was planning an acquisition after Anglo American Plc’s board unanimously rejected a proposal from Xstrata Plc for a “merger of equals” to create a mining company that would compete with BHP. Vale’s negotiations to acquire Zug, Switzerland-based Xstrata broke down in April last year.
Vale’s Bond Offer
Any takeover talk is “market speculation,” Chief Executive Officer Roger Agnelli said on June 25.
A $1 billion convertible bond offer announced by Vale on July 6 further fueled speculation that the miner might acquire a rival in order to compete for access to resources when commodity demand rebounds.
“Potash, along with coal and copper, is part of Vale’s M&A/growth plan,” Itau Unibanco Holding SA analysts wrote in a note to clients today. “Vale sees Potash as the new iron ore.”
Vale raised 19.4 billion reais in Brazil’s largest-ever share offering in July 2008. At the time, Agnelli said the proceeds would be used to fund acquisitions and expand existing operations.
U.S. trading of bullish Mosaic options jumped to a record on July 10 amid renewed speculation that the fertilizer producer may be acquired. Mosaic shares have rallied 43 percent this year.
To contact the reporters on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net. Helder Marinho at hmarinho@bloomberg.net.
Last Updated: July 16, 2009 12:05 EDT
Raytec Metals Corp. Receives Final 2D Seismic Report
Tue Jul 7, 11:24 AM
http://ca.news.finance.yahoo.com/s/07072009/60/raytec-metals-corp-receives-final-2d-seismic-report.html
VANCOUVER, BRITISH COLUMBIA -- Raytec Metals Corp. (the "Company" or "Raytec") (TSX VENTURE: RAY.V) announces that it has received the final seismic interpretation report from the 2D seismic survey conducted on the KP441 permit area of the Spar Property in Saskatchewan. The seismic program was conducted to define additional potential potash mineralization to the previously defined indicated resource of 12.49 million tonnes of K2O and an inferred resource of 12.24 million tonnes of K2O.
The seismic data identified a large area on the Spar Property that has a stable Prairie Evaporite environment where potash mining can occur. The report estimates that the size of the total mineable potash area on the KP441 potash permit is up to 97,000 continuous acres and outlines several primary targets. A four well exploratory drill program is recommended to further define the extent, grade, thickness and type of potash mineralization present on the property. Seismic surveys offer the Company a way of determining the lateral extent of the potash beds as well as providing geological data to guide future drilling and mining operations.
Raytec's president, Mr. Brian G. Thurston, states: "We are pleased with the results from the seismic program and look forward to advancing our potash projects toward commercialization together with Angus Ventures Corp. and Encanto Potash Corp."
The technical content in this news release has been reviewed by Wayne J. Roberts, P.Geo., a director of Raytec and a qualified person as defined by National Instrument 43-101.
About Raytec:
Raytec Metals Corp. is a well-financed, Canadian exploration company with a recently signed Farm-In letter of intent with Africa Oil Corp. and a recently signed letter of intent with Angus Ventures Corp. and Encanto Potash Corp. Raytec currently holds over 180,000 acres of potash permits in Saskatchewan, Canada - the largest producing region for potash in the world. The Company holds approximately a 20 per cent interest in Sulphur Solutions Inc., an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur fertilizer. The Company is further diversified with an iron ore project in Ontario, and a uranium joint venture project in the Athabasca Basin of Saskatchewan.
To find out more about Raytec Metals Corp., please visit the company website at www.raytecmetals.com or review the documents filed on www.sedar.com.
On behalf of the Board,
RAYTEC METALS CORP.
Brian Thurston, President and CEO
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements in this news release include statements regarding the Offering (including the anticipated closing date) and future exploration plans and expenditures. Although, the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. These statements are based on a number of assumptions, including among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contacts: Raytec Metals Corp. Brian Thurston President and CEO 604 688 6410 604 688 6402 (FAX) www.raytecmetals.com
SOURCE: Raytec Metals Corp.
http://www.raytecmetals.com
Trigon's Intercontinental Potash Corp. Provides Update of Operations
Tue Jul 7, 2:36 PM
http://ca.news.finance.yahoo.com/s/07072009/30/link-f-cnw-trigon-s-intercontinental-potash-corp-provides-update-operations.html
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/
TORONTO, July 7 /CNW/ - Mr. Sidney Himmel, President and CEO of Trigon Uranium Corp. ("Trigon") (TSXV: TEL.V) and of Intercontinental Potash Corp. ("ICP" or "the Company") is pleased to provide an update regarding recent work carried out in respect of the Ochoa Polyhalite Project ("Ochoa") in New Mexico. Polyhalite is a potash mineral which the Company anticipates will be developed as slow release, non-chloride, multinutrient potash fertilizer that can be applied directly and as a potassium sulphate fertilizer.
Ochoa, which is the primary ICP property under investigation, comprises 16 federal prospecting permits covering an area of 36,589 acres located about 20 miles east of Carlsbad, New Mexico. The Company has applied for additional exploration permits comprising approximately 9,000 acres.
Mr. Himmel, President of ICP stated: "Recent investigations have confirmed the existence of polyhalite at the Ochoa property and the likely physical characteristics of the polyhalite as a fertilizer mineral. The correlation of polyhalite presence with geophysical gamma logs and acoustic logs has also been confirmed. We have obtained polyhalite core from the Rustler Formation from historical drilling close to our Ochoa project. The anticipated results from metallurgical testing of that core will be helpful to us in establishing agricultural testing procedures and initial views on processing methods and possible milling costs."
The development concept of Polyhalite as an organic, non-chloride, slow-release and multi-nutrient fertilizer and potassium sulphate potash fertilizer is based on early investigations by the United States Department of Commerce and Bureau of Mines, and also more recent agricultural testing in the United States and internationally.
Agricultural research testing in greenhouse environments has demonstrated that Polyhalite may be an effective source of potassium, magnesium, calcium, and sulphur as plant fertilizer nutrients. ICP has concluded that Polyhalite has the potential to be developed as a significant new fertilizer which will provide, on a cost-competitive basis, the same nutrients as currently marketed langbeinite and with additional beneficial features. As a new fertilizer product, Polyhalite is comparable to other multi-nutrient potassium fertilizers such as langbeinite which has approximately one million tons of sales per year. The langbeinite market evolved over the past few years and continues to grow internationally. Supplies of langbeinite are currently being depleted through mining and this may allow for polyhalite being an attractive alternative for potassium sulphate consumers in the future.
Polyhalite has the advantage, as with potassium nitrate and sulphate salts, of being free of chlorides that are problematic in arid environments where accumulation of salts from potassium chloride fertilizers are deleterious to certain plant species. Furthermore, the slow-release aspect may result in beneficial delivery characteristics in agricultural environments where the soils are heavily leached due to high levels of rainfall. Polyhalite may also be developed as a stand-alone product in the potassium sulphate market where combined product demand is approximately 6 million tons per year.
Findings from recently completed investigations:
ICP recently completed numerous geological and metallurgical investigations including:
1. Metallurgical and processing investigation of polyhalite rock
obtained from locations in the vicinity of Ochoa in Lea County, from
the Rustler and Salado Formations that are comparable to polyhalite
beds that underlie the project area under permit.
2. Investigation of rock chip samples from historical oil and gas rotary
drilling on locations in Ochoa.
3. Review of regional oil and gas logs from the Permian Basin within
which Ochoa is located.
4. Review of additional data regarding substantial historical drilling
in the Permian Basin for potash including polyhalite as well as
sylvite.
ICP has completed new drill hole log studies and reviewed detailed reports of historical potassium drilling in the Permian Basin of west Texas and southeastern New Mexico. This information has substantially confirmed the selection of the Ochoa lands as likely large and exploitable deposits. Through the study of polyhalite rocks from various locations in the vicinity of the drill program, and examination of Ochoa rock chips, ICP has confirmed that polyhalite exists in appreciable quantities in the Ochoa permit area. Further, ICP technical staff has concluded that the thickness trends and continuity make Ochoa unique from the regional distribution of polyhalite where thinner, discontinuous beds prevail.
The Company performed a series of tests on polyhalite rock from the Salado Formation to determine the rock's physical and chemical characteristics. The polyhalite rock contains minor amounts of halite to anhydrite depending on the local conditions where the polyhalite was deposited. The physical liberation of polyhalite in analogous Salado Formation to Ochoa by size fraction and solubility were tested. It was determined that upgrading the concentration of such polyhalite concentration can be accomplished by simple washing. It was also determined that the polyhalite can occur as both large crystals and as fine grained masses. Further we have determined that early dissolution of potassium and magnesium is released in a sustained water bath and that post-bath samples indicate the presence of slower-to-release polyhalite fractions as well. Thus the fact that polyhalite can provide potassium, sulphate, and magnesium macronutrients by slow release, as well as standard "immediate" release, was confirmed from rock samples obtained in the Salado Formation to the west of the Ochoa occurrence.
ICP further obtained polyhalite core samples from the shallower Rustler Formation in the vicinity of Ochoa. From these samples, it was confirmed that the presence of polyhalite can be determined from gamma logs and physical density logs such as those utilized on the Ochoa permit. X-ray fluorescence and X-ray diffraction of the lower part of core samples obtained from the Rustler Formation, north of Ochoa, confirmed 73% to 90% or more polyhalite by weight across several feet. The upper core samples are currently at the lab and are also undergoing analyses of textures and mineral phases by microscopy and by a scanning electron microscope (SEM) before and after the samples are exposed to moisture. This will be followed by a series of tests on fresh core to determine the affects of different extractive processes to concentrate polyhalite and potassium. Results of the latter work should be available in late July or early August.
Polyhalite in the Potash Markets and Recent Pricing:
ICP believes that it can develop polyhalite as direct-application multi-nutrient and non-chloride fertilizer potassium mineral. The term "potash" is commonly limited to the mineral sylvite, which is potassium chloride. However, "potash" should include all potassium fertilizers including the nitrates and sulphates. Such potassium sulphate fertilizers include the mineral Langbeinite, mined in New Mexico at locations close to Ochoa and distributed internationally, and schoenite which is extracted from sulphate-rich brines in China and the Great Salt Lake of Utah.
New Mexico is one of the Four Corner States where Trigon has established expertise in finding potassium sulphate trends of significance in the Permian Basin. Minor polyhalite trends were also found in the Paradox Basin but these occurrences lacked the structural suitability necessary for underground mining as was found at Ochoa in New Mexico. Both The Mosaic Company and Intrepid Potash produce sylvite and langbeinite from mines in New Mexico where we understand that the occurrence of polyhalite in their mines is erratic and non-economic. The potassium sulphate fertilizer market is a proven market with current world operating capacity of approximately 8 million tonnes.
During 2008 to the spring of 2009, sylvite (potassium chloride), FOB Vancouver, was quoted in the range of $600 to $1000 with recent quotes in the range of $800. During the same period potassium sulphate was quoted at approximately $1000 FOB US Gulf and Europe.
The non-chloride fertilizer products are potassium sulphate and potassium nitrates. These meet the following demands: (i) chloride sensitive crops which include most fruits, vegetables, horticultural crops; (ii) tobacco; (iii) salty and arid soils such as soils in India and North Africa; and (iv) soils where cultivation is intense and there is therefore a tendency towards chloride build-up. Salty soils reduce water uptake which is further reduced by chloride. Arid soils allow for the buildup of chloride which reduces water uptake and causes toxicity.
Announced Planned Corporate Reorganization of Trigon and Timing of New
Mexico Drill Program:
Trigon recently issued a comprehensive news release announcing the proposed Reverse Takeover ("RTO") involving an offer to purchase the common shares of ICP that it does not already own. The process of the RTO requires that 75% of non-Trigon ICP shareholders tender their shares to the offer. The completion of the RTO process also requires that the independent shareholders of Trigon approve the acquisition by way of shareholder vote at a special meeting of the shareholders. So that required Trigon Information Circular can be completed on a timely basis, the commencement of the drill program on Ochoa will be deferred until the completion of the RTO.
The geological aspects of this press release were reviewed by Sean Muller, P. Geo., and a Qualified Person under NI43-101. Mr. Muller is an independent contractor who provides technical assistance to ICP in potash exploration and development.
About Trigon and ICP:
Trigon Uranium Corp. is an exploration and development company focused in the western and southwestern United States, with operations based in its Golden, Colorado office. Intercontinental Potash Corp. is a private company with 37% ownership by Trigon and is involved in the acquisition, exploration, and development of polyhalite and potash-related minerals in the United States southwest. The shares of Trigon traded on the TSX Venture Exchange under the symbol "TEL".
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Trigon and ICP, including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Trigon does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts
please visit www.trigonuraniumcorp.com or www.intercontinentalpotash.com or contact: Trigon Uranium Corp.
Sidney Himmel
President and CEO
Toronto
Ontario
T: (416) 624-3781
shimmel@intercontinentalpotash.com
Western Potash Corp. Completes Redirectional Drilling on Second Well, Intersects over Twenty Metres of Potash Mineralization
Thu Jul 9, 10:12 AM
http://ca.news.finance.yahoo.com/s/09072009/60/western-potash-corp-completes-redirectional-drilling-second-well-intersects-twenty.html
VANCOUVER -- Western Potash Corp. (the "Company") (TSX.V: WPX, FSE: AHE) is pleased to announce that it has intersected further significant potash mineralization in its drill program on the Milestone property in southern Saskatchewan. The Company's wholly-owned Milestone property, comprising 500 square km in area, is located approximately 30 km southeast of Regina, and is southeast of Mosaic's Belle Plaine Mine, one of the largest producing potash solution mines in the world.
The well presently reported is the third well drilled on the Milestone property and the second well drilled from this particular setup. This redirected well (Milestone - 002A) intersected the potash beds 800 m to the north of the original vertical well (Milestone - 002, located approximately 5.25 km to the southeast of the first well) using directional drilling. The Company decided to drill this directional hole to test the theory that the clay disturbed Patience Lake member, with lower grade potash mineralization, is only a local anomaly. The geological details are described in the news release dated June 15th, where the results for well Milestone - 002 are reported.
The Company is pleased to report that the theory of a locally-disturbed potash bed is correct. The new well has hit good potash mineralization in all three potash members. Coring of the Milestone - 002A well commenced at a true vertical depth of 1,656 m, and intersected the Prairie Evaporite Formation at a true vertical depth of 1,662 m. Visual geological evaluation of the core in conjunction with down-hole gamma ray logs indicate strong potash grades (below a well-developed salt back), very low carnallite content, and very promising minimum formation temperatures of 62deg C within the two upper members, with some carnallite present in the Esterhazy member. The following potash member thicknesses are indicated by the down-hole gamma ray logs:
Member From (m) To (m) Thickness (m) Patience Lake 1674 1683 9 Belle Plaine 1686.7 1691.8 5.1 Esterhazy 1709.5 1716 6.5
All drill intercepts noted in this release are considered the true thickness of the mineralization, as the salt beds are relatively flat-lying and down-hole directional surveys indicate the hole was essentially vertical upon intersecting the salt and potash sequences. The Company utilized directional drilling technology to complete this S-shaped well, one of very few such potash exploration wells ever completed in the province.
The company sees the presence and indicated grade of the potash beds in this third well as a very encouraging result when taken in conjunction with the results reported for the Milestone - 001 well (reported in the June 15th news release). In that well, drilled on the northern part of the property, all three potash members: the Patience Lake, Belle Plaine and the Esterhazy were intersected with thicknesses and grades consistent with those mined at the Belle Plaine solution mine. The Company is confident that it has confirmed that the anomaly encountered in the original vertical well, Milestone - 002, is truly localized and small, and that it has now demonstrated regional continuity of all three potash members between the first and second wells.
A comparison of the gamma ray responses from Milestone - 001 and Milestone - 002A suggest that the mineralized sections observed for each of the three potash members are very consistent and will have very similar tenor in grade and thickness. The current reporting utilizes the gamma log data that has shown an improved correlation with assay data indicating threshold potash mineralization. This reporting is more representative of anticipated mineralized intervals over the initial reporting of visually-logged potash members for Milestone - 001 and Milestone - 002 using marker beds to delineate thicknesses. The observed thicknesses for the mineralized portion of the members from visual logging and gamma ray logging from all holes compares as follows:
Prairie Milestone - 001 Milestone - 002A* Milestone - 002*
Evaporite
Member
Visual Gamma Ray Assay Visual Gamma Ray Visual Gamma Ray
Marker Logging Results Marker Logging Marker Logging
Logging Logging Logging
Interval (m) Interval (m) Interval (m) Interval (m) Interval (m) Interval (m) Interval (m)
Patience 12 11 9.6 10.25 9 12.25 1
Lake
Belle Plaine 5 3.5 4.3 7.3 5.1 6.8 4.5
Esterhazy 7.5 6.1 6 9.25 6.5 11.05 6.5
*Assays are pending for these holes
Passport Metals Inc.: Holbrook Basin Drilling Program Update
Thursday July 9, 9:00 am ET
http://ca.us.biz.yahoo.com/iw/090709/0517557.html?.v=1
Passport Metals Inc. (TSX-V:PPI - News) is pleased to announce completion of the second hole, PP DDH 02-09, at its Holbrook Basin potash project . This hole also twinned one of the previous holes drilled in the 1960's. A total of 5 holes have been permitted and Passport now plans to complete all five holes in this phase of the program.
The objective of this phase of the exploration program is to correlate the historic well data with modern coring and down hole geophysical surveying to verify the historical data and allow Passport to combine the historical data with the data from the 2009 programs to define a NI43-101 potash mineral resource for Passport's Holbrook Basin holdings.
PP DDH 02-09 was rotary drilled to a depth of 880 feet (268.2 metres) and cored from that point through the complete potash horizons to a final depth of 1068 feet (325.52 metres). Initial geophysical down hole testing by electrical gamma rays (an industry standard) indicated the presence of potash in PP DDH 02-09. The entire core horizon has been sealed in plastic to prevent desiccation and shipped to ALS Chemex Laboratory in Reno, Nevada. The ALS Chemex analyses and testing will determine the mineralization, type of potash horizons, widths and grades and most importantly the solubility of the deposit for solution mine testing. Results from the tests performed by ALS Chemex will be released upon receipt. The core from PP DDH 01-09 is being currently being processed. Assay results from this hole are not expected for at least another two weeks.
Drilling on the third hole of this program commenced on July 6th and it is anticipated that this hole will be drilled and cored to 1020 feet (323.1 metres).
Passport has also added two additional exploration permits to the property holdings: Township 17 North - Range 23 East - Section 32 at 433.64 acres and Township 17 North - Range 22 East - Section 36 at 640 acres. Passport now has the right to earn a 100% interest in 18 State Leases totaling 11,046.73 acres or 4,470.45 hectares.
R. Tim Henneberry, P.Geo., a Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
PASSPORT METALS INC.
Laara Shaffer, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Passport Metals Inc.
Laara Shaffer
Director
(604) 687-0300
(604) 687-0151 (FAX)
www.passportmetals.net
Source: Passport Metals Inc.
UPDATE 2-Canpotex inks potash contracts in Korea, Taiwan
Thu Jul 9, 2009 3:27pm EDT
http://www.reuters.com/article/marketsNews/idCAN0927394120090709?rpc=44
* Says contracts priced in the range of $700/tonne
* Key contracts with India, China still to come
* Potash Corp shares up 3.3 pct (Adds analyst comments, background; in U.S. dollars unless noted)
TORONTO, July 9 (Reuters) - Potash Corp of Saskatchewan (POT.TO) (POT.N) said on Thursday its export consortium Canpotex has signed a contract with customers in Korea and Taiwan covering potash shipments for the second half of 2009.
Potash Corp, the world's largest fertilizer maker, said the new contract that varied based on the grade of potash, priced in the range of $700 a tonne on a delivered basis.
Last month, Canpotex signed a contract with Japanese customers covering shipments for the second half of 2009, which were priced at similar levels.
The price of potash -- a key crop nutrient -- has remained stubbornly high even as demand has collapsed, as a small group of companies, which account for roughly 75 percent of global potash supply, have drastically cut production in a bid to maintain pricing.
Analysts and investors are keenly awaiting the outcome of contract negotiations with China and India, as global potash spot market prices are typically pegged above these key contract prices.
"Due to small volumes, these transactions (with Korea and Taiwan) are not expected to have a meaningful impact on price discovery to larger markets such as China and India, as well as Brazil and Southeast Asia," BMO Capital Markets analyst Edwin Chee said in a note to clients.
Most analysts now expect these contract prices to decline this year in light of the collapse in demand. The contracts with the two Asian giants are likely to close some time in the next two months.
China is the world's largest potash buyer and it typically negotiates annual contracts with Belarussian Potash Co (BPC) and Canpotex, at a substantial discount to spot market prices.
BPC is a 50-50 joint venture between Russia's Uralkali (URKA.MM) and Belaruskali, while Canpotex is a partnership between Potash Corp, Mosaic Co (MOS.N) and Agrium Inc (AGU.TO). These five companies along with K+S (SDFG.DE) and Russia's Silvinit (SILV.RTS) account for about 75 percent of global potash supply.
Shares of Potash Corp were up 3.3 percent at C$108.85 on the Toronto Stock Exchange on Thursday afternoon.
($1=$1.16 Canadian) (Reporting by Euan Rocha; editing by Rob Wilson)
UPDATE 2-India-Silvinit deal hits potash producers' shares
Fri Jul 10, 2009 3:44pm EDT
http://www.reuters.com/article/marketsNews/idAFN1052275520090710?rpc=44
* Silvinit-India contract prices well below expectations
* Expected to set tone for further key India, China deals
* Potash Corp shares down 9.2 pct, Agrium, Mosaic fall (Adds Silvinit comment, details; updates shares; in U.S. dollars unless noted)
By Euan Rocha
TORONTO, July 10 (Reuters) - Shares of Potash Corp (POT.TO) and its peers fell sharply on Friday after fertilizer trade publications reported that India has settled some of its 2009 potash contract order with Russian producer Silvinit (SILV.RTS) at a price sharply below market expectations.
India has agreed to buy 850,000 tonnes of potash from Silvinit at a delivered price of $460 a tonne, analysts said, citing reports in Fertecon and FMB. This is well below the $625 to $635 per tonne range that all other major producers had proposed.
"This is a large volume contract between a major seller and large buyer, we thus believe this will establish the market floor price and set the range for Chinese buyers," said UBS analyst Brian MacArthur, who has now placed his "buy" rating and $125 price target for Potash Corp under review.
The price of potash -- a key crop nutrient -- has remained stubbornly high even as demand has collapsed, as a small group of companies, which account for roughly 75 percent of global supply, has drastically cut production in a bid to maintain pricing.
However, concerns that cash-strapped Silvinit might cave on pricing arose after the price it bid in the recent Indian tender was kept confidential, while the prices bid by other major suppliers were made public.
India typically imports between 4 million and 5 million tonnes of potash annually. The contract with Silvinit will account for just a small portion of its 2009 potash requirements, but it will put pressure on other major producers to cut prices.
"If Silvinit has indeed contracted with India at $460 (per tonne) delivered, other producers (BPC, Canpotex) must now decide what to do with their own offer prices," said Morgan Stanley analyst Vincent Andrews.
Silvinit has not issued any official comment on the reported contract pricing. A spokesman for Silvinit told Reuters that the company does not publicly discuss its pricing and marketing policies.
Analysts are optimistic that the settlement of this contract price with Silvinit will lead to a thaw in global potash markets, which have remained frozen as buyers waited for India and China to ink contracts.
China is the world's largest potash buyer and the global price setter. It typically negotiates annual contracts with Belarussian Potash Co (BPC) and Canpotex -- global spot prices usually reset at above the Chinese contract price.
BPC is a 50-50 joint venture between Russia's Uralkali (URKA.MM) and Belaruskali, while Canpotex is a partnership of Potash Corp, Mosaic Co (MOS.N) and Agrium Inc (AGU.TO). These five companies along with K+S (SDFG.DE) and Russia's Silvinit account for about 75 percent of global potash supply.
Shares of Potash Corp fell 9.2 percent to $84.90 on the New York Stock Exchange on Friday afternoon, while those of its peers Agrium and Mosaic Co were down 4.8 percent and 4.4 percent respectively.
Uralkali's shares closed down 5.2 percent on the London Stock Exchange, while those of K+S closed down 1.9 percent in Germany. (Reporting by Euan Rocha; editing by Rob Wilson)
Canpotex Announces Second-Half 2009 Potash Sales to Korea and Taiwan
Canpotex announced today that it has concluded second-half 2009 contract business with a number of customers in both Korea and Taiwan at average equivalent delivered prices in the range of US$700/MT, depending on grade.
Source: Canpotex
Passport Metals Inc. Acquires 3 Additional Leases in Holbrook Potash Property in Arizona
Monday July 6, 10:46 am ET
http://ca.us.biz.yahoo.com/iw/090706/0516361.html?.v=1
Passport Metals Inc. (TSX-V:PPI - News) is pleased to announce that it has acquired 3 new leases adjacent to its property holdings in the Holbrook Basic Potash property. The 3 claims: #08-113498, 640 acres, T16N R22 E Sec 16, #08-113499, 439.79 acres, T15N R 22E Sec 4 and #08-113500, 480 acres, T16N R22E Sec 28 total 1559.79 acres. There are two leases pending approval by the State of Arizona.
In September 2008, Passport entered into a mineral option agreement with Southwest Exploration Inc., a private Arizona incorporated company, to acquire a 100-per-cent interest in 13 state leases comprising 8,413.3 acres (3,404.76 hectares). The properties, to be designated the Holbrook holdings, are located in Navajo county, covering portions of the prospective Holbrook basin. Passport now has the right to acquire a 100% interest in 16 state leases totaling 9,973.09 acres or 4,035.96 hectares.
ADVISORY BOARD APPOINTMENT
Passport Metals Inc. has appointed Clive Bailey, Certified Professional Geologist, to the Advisory Board effective immediately. Mr. Bailey is a "Qualified Person," or "QP" as defined by the NI 43-101 standards and has a BS in geology. Mr. Bailey has more than 30 years of experience in salts, uranium and precious metals. Additionally, Mr. Bailey has extensive experience with downhole logging and geophysics and has completed more than 1,000,000 feet of drilling throughout his career. Mr. Bailey is an environmental specialist and served as a manager/advisor to a public company that controlled a portion of the Carlsbad, New Mexico potash deposit.
The company also wishes to announce that Terence Smithson is no longer on the Advisory Board and the Company wishes to thank him for his efforts.
On behalf of the Board of Directors
Laara Shaffer, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Passport Metals Inc.
Laara Shaffer
Director
(604) 687-0300
(604) 687-0151 (FAX)
www.passportmetals.net
Source: Passport Metals Inc.
Talon Metals Granted Rights to New Potash Exploration Licences
Mon Jul 6, 8:00 AM
http://ca.news.finance.yahoo.com/s/06072009/30/link-f-cnw-talon-metals-granted-rights-new-potash-exploration-licences.html
Update Provided on Sergipe Potash Project, Brazil
TSX:TLO
ROAD TOWN, Tortola, British Virgin Islands, July 6 /CNW/ - Talon Metals Corp., ("Talon" or the "Company") (TSX: TLO.TO) is pleased to announce the granting of two new exploration licences for potash and to provide an update on the Sergipe Potash Project located in Sergipe State, Brazil.
In a news release dated May 25, 2009, the Company announced the acquisition of the Sergipe Potash Project and immediately commenced a detailed review of the available technical data. Subsequently, Talon submitted an application for two additional exploration licences within the potash bearing Sergipe basin, which together comprise a new prospect area, the Ilha das Flores prospect.
The Sergipe Potash Project now comprises seven onshore and two offshore prospects. Talon holds exploration licences for a total area of 21,117 hectares (52,181 acres) and has applications for exploration licences pending for a further 19,150 hectares (47,320 acres). Currently, the Sergi, Rio do Sal and Capela prospects are the most attractive onshore prospects and are the focus of Talon's exploration program.
"The granting of two new exploration licences for potash enhances our drive to build a significant portfolio of potash projects in Brazil and the technical information we have acquired and reviewed recently from past petroleum exploration is very encouraging," said Mr. Stuart Comline, President and CEO of Talon. "This is particularly so for the Sergi prospect as the data has confirmed the presence of several potash layers. We will complete the review of the existing data in order to guide our field based exploration program."
There is a significant amount of technical data on the Sergipe-Alagoas sedimentary basin, generated by the oil and gas industry since 1960. To date, the Company has acquired the logs of 86 historical oil wells within the basin, some of which are strategically located within Talon's prospect areas.
In addition, the Company is acquiring other existing exploration data, including 2-D and 3-D seismic data, additional drill logs, downhole geophysical profiles and the data from a regional gravity survey. All of this data originated from exploration programs focused on oil and gas and therefore requires reinterpretation in order to apply it to potash exploration. The Company expects to receive all the data by the middle of July 2009 and to complete the evaluation of this historical data by the end of August 2009, which will correspond to the end of Phase I of the exploration program.
Phase II is planned to commence in September 2009 and would include 2-D and 3-D seismic surveys over the most prospective targets, followed by a drilling program, which is currently scheduled to start in November 2009. Talon is in the process of submitting applications for the licences that are required to conduct the Phase II field based program.
SERGI PROSPECT
Sergi is one of the most attractive prospects and has excellent infrastructure as it is located 37 kilometres southwest of the Taquari-Vassouras potash mine (the only potash mine in Brazil and which is operated by Vale) and 18 kilometres from the town of Aracaju (the capital of Sergipe State).
There are three historical oil wells within this prospect area, which were drilled by Petrobras (a Brazilian oil & gas company) between 1969 and 1991. Oil well 1 FT 0001A SE reportedly intercepted seven discrete potash-bearing layers, composed of sylvinite or sylvinite and carnallite, with widths ranging from 2.0 metres up to 11.5 metres. The combined width of the seven layers represents 35.5 metres of potash mineralization, which were intersected at a depth of between 1,167.5 metres and 1,319 metres.
Wells 1 COL 0001 SE and 1 TC 0001 SE intercepted the evaporite sequence, which hosts the potash mineralization, but the logs only report the intersection of anhydrite and halite. Nevertheless, Talon's reinterpretation of the downhole geophysical profiles suggests the presence of potash mineralization in both oil wells.
RIO DO SAL PROSPECT
The Rio do Sal prospect is located immediately to north of the town of Aracaju, some 20 kilometres east of the Sergi prospect.
According to the data recorded in this area, there are five wells within the property, of which Talon has accessed log data for three of them to date. Potash mineralization is reported in two oil wells. Well 1 CAU 0002 SE intersected nine potash layers with widths ranging from 1.5 to 13.0 metres, and with a cumulative width of 40.0 metres, between an intersection depth of 1,320 metres to 1,438 metres. Well 1 SC 001 SE intercepted an 18 metre-thick layer of massive carnallite, from a depth of 1,648 metres. The third well investigated by the Company reportedly intersected the evaporate sequence (Ibura Member) but did not report any potash mineralization. A reinterpretation of this data will be undertaken.
CAPELA PROSPECT
The Capela prospect has no existing oil wells within the prospect area, although two wells, located 2.5 and 3.8 kilometres away from the southern and south eastern border of the property respectively, reportedly intersected carnallite mineralization. Of significance, the prospect is within a geophysically defined basin, some 19 kilometers-long and 1.0 to 3.5 kilometres-wide, which is postulated to be the northern extension of Vale's Miranda potash deposit.
Preliminary modelling by Talon of the evaporate sequence (Ibura Member) suggest that the Capela prospect has potential to hold potash mineralization at depths of less than 1,000 metres.
FUTURE WORK
The acquisition and reinterpretation of oil exploration data in the Sergipe-Alagoas basin will continue until the end of August 2009, with an aim of defining the most attractive targets for potash mineralisation and to delineate the basin structure, based on the reported geology in the well logs and on geophysical interpretations. Particular emphasis will be placed on identifying the more continuous and well developed potash deposits, occurring at the shallowest depths. Much of the reinterpretation is being conducted in association with experienced consultants, Stratageo SARL, and the results of this work will be reported as it becomes available.
Qualified Person
Talon's exploration programs are being managed by Talon's VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), who is a qualified person within the meaning of National Instrument 43-101. Mr. Ilidio de Brito, who is responsible for the technical material in this release, has verified the data disclosed in this release.
About Talon
Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality resource projects. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.
Talon has a treasury of approximately CDN$5.5 million and holds 2,450,000 common shares in Beadell Resources Limited (ASX: BDR.AX). Talon has 24,054,222 common shares outstanding.
Contacts
on Talon please visit the Company's website at www.talonmetals.com or contact: Erica Belling
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com
Canadian potash juniors: Prime BHP takeover targets
Don Coxe, one of North Americaa's best regarded mining gurus, reckons that a trio of Canadian junior potash explorers will be key takeover targets for BHP Billiton.
Author: Marc Davis
Posted: Wednesday , 24 Jun 2009
Vancouver, BC (BNW News Wire) -
http://www.mineweb.net/mineweb/view/mineweb/en/page31?oid=85417&sn=Detail
Canada's trio of small but well-financed potash exploration juniors - Western Potash (TSX.V: WPX), Potash One (TSX: KCL) and Athabasca Potash (TSX: API) - are obvious takeover targets for potash-hungry BHP Billiton, the world's largest mining company. So says Don Coxe, one of the investment industry's leading experts on commodities.
Chicago-based Coxe is the chief strategist for Canada's Coxe Commodity Strategy Fund (TSX: COX.UN), which was named after him by the BMO Financial Group, the big-league investment banking firm that runs the fund.
BHP Billiton has already stated that it wants to be a "major" player in the potash industry within the next decade. And it is already hard at work developing the world's largest potash mine ever. Located 150 kilometres east of Saskatoon near the town of Jansen, it will eventually produce eight million tonnes per year mine and is scheduled for commissioning in early 2015. The mine will cost upwards of Cdn. $2.5 billion to build.
Yet, the diversified Australia-based mining company is a newcomer to the potash business and its grand aspirations cannot be realized with the commercialization of just one potash mine - no matter how big it is. Hence, Coxe believes that BHP Billiton may become an aggregator by buying out other valuable potash resources, such as potash deposits that are already in-development elsewhere in Saskatchewan.
And the most obvious candidates would be Saskatchewan's trio of publicly-traded potash explorers - Western Potash, Potash One, and Athabasca Potash - all of which are making good headway with their respective flagship projects.
"If you're a small potash exploration company operating in Saskatchewan, BHP Billiton might be interested in you," Coxe hinted during an exclusive interview with BNW Business News Wire. "Their cash flows are enormous and they want to be known as the leading resource company in the world."
This astute insight is shared by Jacob Bout, a fertilizers analyst for the Toronto-based investment banking heavyweight CIBC World Markets.
"Companies involved solely in exploration of potash are likely take-out candidates, either by diversified mining companies seeking a way into the potash industry or by countries looking to lock-in supply," he stated a few months ago in a comprehensive research report entitled ‘Global Potash Supply - A Focus on Saskatchewan Exploration.'
In the same report, Bout pointed out that BHP Billiton is "looking to get involved in potash mining." It is worth noting that global mining giant Vale has recently taken over all of Rio Tinto's global potash assets, making Vale another potential suitor for potash juniors in Saskatchewan.
A BHP Billiton spokesperson, Ruban Yogarajah, declined to discuss any future takeover plans that BHP Billiton might have to significantly build up its potash assets in the region in order to become a "major" producer.
Among the three remaining publicly-traded mining juniors that are still in the race to develop Saskatchewan's first new potash mine in nearly 40 years is Potash One. It announced the completion of a multi-million dollar pre-feasibility study (a preliminary blueprint for a mine) in late June. The assessment suggests that Potash One's solution-extraction amenable (low-cost and scalable) Legacy Deposit has a net present value of US $4.47 billion.
The company recently received another major boost with the arrival of its new chairman, Robert Friedland, in May. The mining magnate is best-known as the man behind the epic Voisey's Bay nickel discovery in the remote Labrador region of eastern Canada. His company later sold the deposit to the mining multinational Inco Ltd. (now Vale Inco) for the princely sum of Cdn. $4.3 billion.
Coxe says he greatly admires Robert Friedland's "visionary" business acumen and believes that the famous financier has made a shrewd move by becoming the new driving force behind Potash One.
Friedland's efforts to develop huge mining projects in Mongolia and the Democratic Republic of Congo have lately been thwarted by "Third World politics," Coxe laments. By comparison, Friedland's commitment to developing a new potash mine in Saskatchewan represents a "pretty attractive" opportunity, he adds.
Meanwhile, BHP Billiton's drive to break into Canada's lucrative potash mining business may prove to be yet another master stroke, experts agree. In recent years, BHP Billiton helped break up De Beers' seemingly omnipotent diamond cartel with the commercialization of Canada's first ever diamond mine in 1998 - the rich Ekati Mine in the Northwest Territories.
Such takeover talk is music to the ears of Western Potash's president, Patricio Varas. "At WPX, we are exploring and developing a world-class resource. But lots of work is still ahead of us to prove and show companies like BHP that we have a worthwhile asset. On our side, we have the funds and the technical ability to explore and discover that one special asset that attracts mine builders like BHP," he told BNW News Wire.
Rumours are even circulating that BHP Billiton could take a run at Potash Corp. of Saskatchewan - which boasts the world's largest potash reserves. Fai Lee, a mining analyst for another major Canadian investment bank, RBC Capital Markets, thinks that the merger would make strategic sense.
"We view Potash Corp.'s potash assets as long-life, low-cost assets that can be expanded and are largely export-oriented. As such, we believe Potash Corp.'s potash business would represent a good fit with BHP Billiton's stated business strategy," he recently advised clients.
Lara Acquires Sergipe Potash Targets in Brazil
Mon Jun 22, 10:00 AM
http://ca.news.finance.yahoo.com/s/22062009/28/link-f-ccnmatthews-lara-acquires-sergipe-potash-targets-brazil.html
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2009) - Lara Exploration Ltd. (TSX VENTURE: LRA.V) ("Lara" or "the Company") is pleased to report that it has been granted potash exploration licenses, totaling approximately 14,000 hectares, in Sergipe State, northeast Brazil. The claims are adjacent to and cover the extensions of the potash-bearing sedimentary basins of Vale's Taquari-Vassouras mine, which produced 607,000 tons of potash in 2008.
These sedimentary basins have been explored extensively for oil and gas in the past and a database of seismic surveys and exploration drilling is available through the Brazilian National Petroleum Agency ("ANP"). This ANP data includes eight wells drilled within Lara's new licenses, several of which intercepted potash, with the best drilled intercept a cumulative 37.6 meters of potash mineralization in ten separate sedimentary units between 1,710 and 1,806 meters depth. The Company plans to access and review the available exploration data in the coming months.
Brazil is a major consumer of potash, mostly as a feedstock for fertilizers. Taquari-Vassouras is the only operating potash mine in Brazil, which currently imports 90% of its potash needs.
The Company's Sergipe Potash exploration licenses are held through Lara Alianca Ltda., a Brazilian company owned 100% by Lara Alliance BVI Ltd., which is in turn owned 50% by Lara and 50% by Sprott Resource Corp.
Quality Control
Michael Bennell, Lara's Vice President Exploration and a member of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, and is responsible for the preparation and verification of the technical information in this release.
About Lara
Lara is a well-funded prospect generator, with a multi-commodity exploration portfolio focused on Brazil, but with significant holdings in Colombia and Peru. Lara's common shares trade on the TSX Venture Exchange under the symbol "LRA".
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contacts
Miles Thompson
Lara Exploration Ltd.
President
(604) 669-8777
Kim Casswell
Lara Exploration Ltd.
Corporate Secretary
(604) 669-8777
Julia Maxwell
Lara Exploration Ltd.
Investor Relations
(604) 669-8777
(604) 688-1157 (FAX)
Chris MacIntyre
Lara Exploration Ltd.
Investor Relations
(416) 640-1932
info@laraexploration.com
www.laraexploration.com
Trigon Uranium Corp. and Intercontinental Potash Corp. Announce Proposed Reverse Take-Over
Fri Jun 19, 12:01 AM
http://ca.news.finance.yahoo.com/s/19062009/30/link-f-cnw-trigon-uranium-corp-intercontinental-potash-corp-announce-proposed.html
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/
TORONTO, June 19 /CNW/ - Trigon Uranium Corp. ("Trigon") (TSXV: TEL.V) and Intercontinental Potash Corp. ("ICP") are pleased to announce that they have entered into a non-binding letter of intent executed on June 18, 2009 pursuant to which Trigon intends to make an offer to acquire all of the issued and outstanding common shares of ICP, a private company existing under the laws of Canada, by way of a share exchange (the "Transaction"). ICP is engaged in the exploration and development of potash properties. Trigon currently holds approximately 37% of ICP through its ownership of 15,000,000 common shares of ICP. Upon completion of the Transaction, Trigon intends to change its name to Intercontinental Potash Corp. and continue to be listed on the TSXV in the mining issuer category and ICP intends to change its name to ICP Corp.
ICP is seeking to commercialize Polyhalite as a slow-release fertilizer from its Ochoa project in Lea County, New Mexico. Polyhalite is an evaporite mineral containing potassium, magnesium, sulphate, and calcium. ICP is also investigating other areas of the world for the possibility of exploring for and developing Polyhalite Deposits. The area of interest of the Ochoa project is being investigated by ICP with the ultimate objective of producing and marketing Polyhalite as a multi-nutrient, slow-release, chloride-free fertilizer. ICP controls 100% of the Ochoa property, which consists of federal sub-surface potassium permits granted by the Bureau of Land Management ("BLM") comprising an area of 36,589 acres. All reclamation plans, environmental plans, and archeological work have been approved by BLM. Bonds in respect of the drill program have been accepted and all cost recovery charges have been paid in accordance with federal regulations. The initial term of the permits, granted on December 1, 2008, is two years and may be extended to four years in total if in the opinion of BLM exploration has proceed in an expeditious manner. The prospecting permits include the approval of a detailed 16 drill hole program covering the entire acreage. A technical report in respect of the Ochoa project was filed on Trigon's profile on SEDAR in January, 2009 at www.sedar.com.
In anticipation of the closing of the Transaction, Trigon proposes to consolidate all of its currently issued and outstanding common shares on the basis of one new share for each four existing shares (subject to receipt of shareholder and regulatory approval). Under the terms of the offer, ICP shareholders will receive one new Trigon common share (on a post-consolidation basis) for each ICP common share. In connection with the Transaction, all options of ICP will be exchanged for equivalent options of Trigon which will thereafter entitle the holders to acquire common shares of Trigon in lieu of common shares of ICP based on the same terms and subject to the same conditions as the existing options of ICP. Because Trigon and ICP are not arm's length parties, the Transaction must be approved by an ordinary resolution of shareholders and a majority of the votes cast by minority shareholders of Trigon. In addition, the consolidation and name change must be approved by a special resolution of shareholders of Trigon. The ultimate structure for the Transaction may, however, be revised after Trigon and ICP have each had an opportunity to receive final legal, accounting and tax advice regarding the most appropriate form for the Transaction.
It is the intention of Trigon to use its best efforts to complete a private placement prior to the closing of the Transaction, pursuant to which Trigon shall issue subscription receipts (the "Subscription Receipts") at a price to be determined to raise gross proceeds currently estimated to be approximately $3,000,000. The terms of the financing will be determined in the context of the market.
Over the past several months, Trigon has been considering various alternatives to increase shareholder value in light of current market conditions for junior uranium exploration companies. Trigon believes that the proposed Transaction with ICP provides significant opportunity. The acquisition of interests in the potash sector is expected to provide Trigon with a new focus and a significant asset base and, as a result, greater flexibility and value, and enhanced ability to raise capital. For further financial information concerning Trigon, please refer to the annual audited financial statements of Trigon for the year ended December 31, 2008 as well as the unaudited interim financial statements of Trigon for the three month period ended March 31, 2009, all available on SEDAR at www.sedar.com.
It is anticipated that immediately following the closing of the Transaction (and prior to giving effect to the offering of Subscription Receipts) and assuming that all of the ICP common shares are acquired under the offer and there are no changes to the outstanding common shares or convertible securities of either company, Trigon will have approximately 41,555,598 common shares outstanding, of which 25,800,001 common shares will be issued to acquire the remaining portion of ICP not already owned by Trigon, and approximately 15,755,597 common shares will be held by existing Trigon shareholders. Furthermore, based upon the foregoing assumptions, it is anticipated that a further 5,186,325 common shares of Trigon will be reserved for issuance upon the exercise of outstanding convertible securities.
ICP currently has 34 shareholders. Trigon owns, directly or indirectly, or controls or directs 15,000,000 common shares (approximately 37%) of ICP. No other shareholder controls more than 11% of the shares of ICP. As at December 31, 2008 ICP had net working capital of approximately $4,080,000, assets of $5,466,686 and shareholders' equity of $5,312,343. ICP has no liabilities other than accounts payables incurred in the operation of its business.
Sidney Himmel, the current President, Chief Executive Officer and a director of Trigon is also the President, Chief Executive Officer and a director of ICP, Kevin Strong, the current Chief Financial Officer of Trigon is also the Chief Financial Officer of ICP and Dr. George Poling, a current director of Trigon is also a director of ICP. Mr. Himmel holds 1,211,433 common shares and 950,000 stock options of Trigon and 1,000,001 common shares and 750,000 stock options of ICP. Dr. Poling holds 2,914,235 common shares and 375,000 stock options of Trigon and 950,000 common shares and 500,000 stock options of ICP. Mr. Strong holds 100,000 stock options of Trigon.
Following the closing of the Transaction, it is anticipated that three nominees of ICP will join the four person board of directors of Trigon such that the reconstituted board of directors will consist of Dr. George Poling, Sidney Himmel, John Greenslade, and Knute Lee (representing the existing Trigon board of directors) as well as the Honourable Pierre Pettigrew PC, Anthony Grey, and Ernest Angelo (representing the existing ICP board of directors).
Dr. Poling is currently a director of Quadra Mining Ltd. (TSX) since February 2004 and the Chair of the Environmental and Safety Committee and a member of the Compensation Committee, a director and Chairman of the Board of BioteQ Environmental Technologies Inc. (TSX) since December 2000, a director of Minterra Resource Corp. (TSXV) since 1995, and the Senior Vice President of Rescan Environmental Services Ltd, an environmental and engineering consulting firm. Mr. Himmel is the President of Trigon and was previously its Chief Financial Officer. He has over 17 years experience in Canadian capital markets, having worked for Toronto Dominion Securities as Vice President and Director, and Merrill Lynch Canada Ltd. as a Corporate Finance specialist in mining finance. Mr. Himmel holds B.Sc. and B.A. degrees from the University of Toronto and has been a Chartered Accountant since 1981. Mr. Greenslade has practiced securities law in Vancouver, British Columbia since 1981, and is President (since 1992) and a director (since 1991) of Minterra Resource Corporation (TSXV), and President (since April 2004) and a director (since 2004) of Baja Mining Corp. (TSX). Mr. Lee is an independent landman and owner of KHL Inc., an oil and gas company.
The Honourable Pierre S. Pettigrew, P.C. has been Executive Advisor, International at Deloitte & Touche LLP since 2006 and was a Minister for the Government of Canada from 1995 to 2006. Anthony Grey has been Chairman of International Ferro Metals Limited, a ferrochrome mining company, since 2002. Ernest Angelo is a self-employed petroleum engineer and the managing partner of Discovery Exploration, which invests in oil and gas exploration and production.
Completion of the Transaction is subject to a number of conditions, including the approval of the TSX Venture Exchange, the execution of definitive documentation, the completion of satisfactory due diligence, shareholders holding a minimum of 75% of the issued and outstanding common shares of ICP (excluding common shares held by Trigon) tendering such shares to the offer, and the approval of the requisite majority vote of shareholders of Trigon (including the approval of the requisite majority of disinterested Trigon shareholders). In this regard, Trigon proposes to hold a meeting of its shareholders to approve the Transaction and such other matters as are required by law or the TSX Venture Exchange as soon as possible. The Transaction cannot close until the approval of shareholders of Trigon and all required regulatory approvals are obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the Transaction, any information released or received with respect to the proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Trigon should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release.
About Trigon and ICP
Trigon Uranium Corp. is a uranium exploration and development company focused on deposits in the western and southwestern United States , with operations based in its Golden, Colorado office. Intercontinental Potash Corp. is a private company with 37% ownership by Trigon and is involved in the acquisition, exploration, and development of potash and potash-related mineral lands in the United States Southwest with emphasis on polyhalite, a multinutrient potash mineral. The shares of Trigon trade on the TSX Venture Exchange under the symbol "TEL".
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Trigon and ICP, including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Trigon does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts
please visit www.trigonuraniumcorp.com or www.intercontinentalpotash.com or contact: Trigon Uranium Corp.
Sidney Himmel
President and CEO
Toronto
Ontario
T: (416) 624 3781
shimmel@intercontinentalpotash.com
Raytec Signs Letter of Intent With Proposed Amalgamated Angus Ventures Corp. & Encanto Potash Corp.
Tue Jun 16, 10:16 AM
http://ca.news.finance.yahoo.com/s/16062009/60/raytec-signs-letter-intent-proposed-amalgamated-angus-ventures-corp-encanto.html
VANCOUVER, BRITISH COLUMBIA -- Raytec Metals Corp. (the "Company" or "Raytec") (TSX VENTURE: RAY.V) announces that it has entered into a letter of intent to sell a 100 percent interest in its potash assets, including the Spar Property and KP452, to Angus Ventures Corp. ("Angus") (TSX VENTURE: AGN-H.V) and Encanto Potash Corp. ("EPC"). Angus and EPC have agreed to merge by way of an amalgamation (the "Amalgamation") and the merged company will also have the name Encanto Potash Corp. and is hereinafter referred to as "Encanto".
Under the letter of intent, Raytec will sell all of its current potash properties including the Spar Property and KP 452 to Encanto. The Company will receive up to 20,680,000 shares of Encanto at a deemed price of $0.25 per share for a deemed value of up to $5,170,000, which is approximately equal to the aggregate of Raytec's acquisition costs and costs incurred to date on its potash properties. The actual number of shares to be issued will be determined based on all expenditures incurred to date by Raytec to acquire its potash properties and all expenditures incurred by Raytec on such properties, subject to the above maximum number of shares being issued.
Furthermore, Raytec will make available $6.5 million to be spent on the combined potash properties ("Encanto's Potash Properties") by December 29, 2009 to earn a 51% interest in Encanto's Potash Properties. Encanto will have the option to repurchase the 51% Raytec interest in Encanto's Potash Properties for 26,000,000 shares of Encanto (the "Option").
Upon exercise of the Option, Raytec will own an aggregate of up to 46,680,000 shares of Encanto which will approximate 29% of the Encanto's issued and outstanding share capital as it will be constituted on completion of the Angus/EPC Amalgamation.
Additional terms include:
(i) Raytec will have the right to nominate up to two directors to the board of directors of Encanto; and
(ii) Raytec will have a pre-emptive right to participate in future financings of Encanto so as to preserve its percentage interest in Encanto.
The proposed transactions are subject to a number of conditions, including:
|p
b. Due diligence investigations by both parties;
c. The drafting of a formal agreement between the parties;
d. Regulatory approval; and
e. The approval of the shareholders of Angus Ventures Corp. and Encanto Potash Corp.
Raytec's President, Mr. Brian Thurston states, "We are extremely pleased to provide Raytec shareholders with the opportunity to be involved with Encanto whose primary focus is to explore our combined properties and develop an economic potash deposit. A key factor in the success of any potash venture is the ability to finance through to production. We believe that Encanto's strategic alliance with Endeavour Financial Ltd. will be a determining factor in our successful development of the next potash mine."
The transactions are subject to TSX-Venture Exchange approval. A finders fee will be payable in accordance with TSX-Venture Exchange policies.
About Encanto:
Encanto is a company that has to date, obtained exploration permits from the Federal Department of Indian and Northern Affairs Canada (INAC) on two first nation band's lands in southeastern Saskatchewan. Preliminary environmental approval has been received and 2-D seismic exploration has been concluded over the respective areas. Encanto has memorandums of understanding with seven bands in total, and is pursuing additional permits to explore on further first nations lands. Encanto has entered into a financial advisory services agreement with Endeavour Financial Ltd. pursuant to which Endeavour has agreed to provide Encanto with certain general corporate financial advice and consulting services, including services with respect to structuring, negotiating and closing of certain transactions, as well as corporate management and administrative services.
About Raytec:
Raytec Metals Corp. is a well-financed, Canadian exploration company with a recently signed Farm-In letter of intent with Africa Oil Corp. and, with over 180,000 acres of potash permits in Saskatchewan, Canada - the largest producing region for potash in the world. The Company holds approximately a 20 per cent interest in Sulphur Solutions Inc., an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur fertilizer. The Company is further diversified with an iron ore project in Ontario, and a uranium joint venture project in the Athabasca Basin of Saskatchewan.
On behalf of the Board,
RAYTEC METALS CORP.
Brian Thurston, President and CEO
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements in this news release include statements regarding the Offering (including the anticipated closing date) and future exploration plans and expenditures. Although, the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. These statements are based on a number of assumptions, including among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Contacts: Raytec Metals Corp. Brian Thurston President and CEO 604 688 6410 604 688 6402 (FAX) www.raytecmetals.com
SOURCE: Raytec Metals Corp.
http://www.raytecmetals.com
Americas Petrogas Engages Experts for Potash Brine Reservoir and Evaporite Deposit
Wednesday June 17, 9:25 am ET
http://ca.us.biz.yahoo.com/iw/090617/0511517.html
Americas Petrogas Inc. (TSX-V: BOE) (BOE) (the "Company" or "Americas") is pleased to announce it has formally engaged experts to assist in development of Americas surface potash brine reservoir and solid evaporate deposits located on the Company's Bayovar concession in the Sechura Desert in Northwest Peru.
Mr. Luis Coronel is a Chemical Engineer with over 40 years experience worldwide (including Australia, Brazil, China, Mexico, Peru, India, Venezuela, and the USA) in all aspects of analysis, planning, design, engineering and project management and implementation of solar evaporation technology for processing of brines for producing potash, salt and chemical by-products. Mr. Coronel was Project Manager for producing salt and potassium chloride from surface-underground brine in the Ramon pilot plant for Minero Bayovar and Kaiser Chemical (USA) in Peru, two of the prior ("historical") concession holders of the Company's Bayovar concession. In Mexico, he acted as Production Manager for the world's largest solar evaporation plant. His operating experience includes process optimization, crystallization production, harvesting, hauling and washing technologies. He was a leader in the production of potassium sulphate by solar evaporation of bittern. Mr. Coronel also worked for Akzo Nobel Salt Inc. which was the world's largest salt company, based in USA and the Netherlands. He was Manager of Solar Salt Technology and assisted senior management in special projects in the USA and around the world.
Luis Coronel commented:
"Because of Bayovar's unique geographic location, the Company will be able to efficiently utilize the sun and the wind in its solar evaporation processing. This will allow the project to have low capital costs, low operating costs and to be environmentally friendly with very low carbon emissions."
Mr. Vicente Palacios, Chemical Engineer, has 40 years experience in quality control and was head of the laboratory and quality control director for Southern Peru Copper refining operations in Peru. Mr. Palacios also has direct experience with the Company's Bayovar concession as he served as Head of Laboratory, head of the Ramon Pilot Plant and head of Fertilizers and Brines for Minero Peru. He was also involved in prefeasibility and feasibility studies concerning brines at Bayovar.
Barclay Hambrook, President and CEO commented:
"The engagement of these two highly qualified chemical engineers, both with hands-on experience with historical Bayovar concession holders provides the Company the advantages of proceeding ahead quickly in updating historical engineering information, retesting of potash brines and in initial design of the Company's Solar Evaporation Processing plant for potash fertilizers and other specialty chemicals."
Mr. Hambrook added that an additional advantage is having experts familiar with worldwide operations experience including countries like China, India and Brazil.
About Americas Petrogas Inc.
Americas Petrogas is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". The Company has oil and gas exploration and development activities in Argentina and, in Peru, the Company, through its wholly owned subsidiary, Americas Potash Peru SA, is developing a surface potash brine reservoir and evaporate deposit at Bayovar in the Sechura Desert, Northwest Peru.
Except for historical information, certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include but are not limited to references to future development activities on the Bayovar potash concession. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
Contact:
Contacts:
Americas Petrogas Inc.
Barclay Hambrook, P. Eng., MBA
President and CEO
(403) 685-1888
(403) 685-1880 (FAX)
Email: inquiries@americaspetrogas.com
Website: www.americaspetrogas.com
Source: Americas Petrogas Inc. and Americas Potash Peru SA
Pre-Feasibility Study at Potash One's Legacy Solution-Mining Project Estimates Net Present Value of US$4.47 Billion
Thursday June 18, 10:47 am ET
http://ca.us.biz.yahoo.com/iw/090618/0511965.html?.v=1
Paul Matysek, President and Chief Executive Officer of Potash One Inc. (TSX: KCL) is very pleased to announce that a team of internationally-respected engineering and consulting firms has completed work on a Pre-Feasibility Study ("PFS") for Potash One's Legacy Solution-Mining Potash Project in Saskatchewan, Canada. Compilation of the study components was performed by SNC-Lavalin Inc. ("SNC-Lavalin"), an international engineering and construction firm headquartered in Montreal, QC.
Highlights Include:
- PFS estimates are based on estimated capital and operating costs for a 2.5 Million t/y potash solution mine, a financial model based on 100% equity and future potash prices as projected by British Sulphur Consultants - part of the CRU Group, United Kingdom.
- Measured Resources of 29 million tonnes and Indicated Resources of 222 million tonnes of KCl.
- Annual Potash Production: 2.5 million tonnes per year of KCl.
- Initial Mine Life: 40 years.
- Estimated Capital Cost: US$1.877 Billion including allowances for contingency, risk and escalation.
- Estimated After-tax and royalty Internal Rate of Return (IRR) is 30.1%.
- Estimated Net Present Value (NPV) after tax at a 10% discount rate is US$4.47 Billion.
- After-tax payback period of approximately 3.3 years.
- Recommendation to Potash One to advance the Legacy Project to the Feasibility Study stage, based on the favourable results of the PFS summarized above.
Paul F. Matysek, President and CEO of Potash One stated: "On the anniversary of our Toronto Stock Exchange Listing, the completion of the Pre-Feasibility Study represents a significant milestone in the development of the Legacy Solution-Mining Project. The PFS study estimates confirm our view that the Legacy Project has the potential to become a high quality, long-life potash solution mine with robust economics. We have a sizeable resource, a best in class technical team and a strategic plan for international capital investment. By utilizing proven solution mining technology, we believe that Potash One will develop a scalable, low risk mining operation which could see its first production as early as Q4 2013."
Robert M. Friedland, Chairman of Potash One commented: "The Pre-Feasibility Study confirms the stature of Potash One as one of the most attractive new opportunities to develop an important Potash operation. There is no substitute for Potash and as a fertilizer ingredient it truly is the Mineral of Life. With an updated Measured and Indicated resource estimate to potentially support a 2.5 million tonnes per annum solution-mining operation for more than 100 years, the Legacy Project will contribute to filling the supply gap for potash."
To ensure success in the preparation of the PFS, Potash One commissioned a team of world-class engineering and specialized consulting firms with the following responsibilities:
- SNC-Lavalin Inc. - Compilation of study components, Plant Engineering, Cost Estimating, and Project Economics (pre-tax)
- North Rim Exploration and Agapito Associates - Geology
- Agapito Associates, Cavern Engineering, and Potash One - Mining
- Golder Associates - Environmental and Socio-Economic Aspects
- Swenson Technology - Evaporation-Crystallization Technology
- Potash One - Utilities and Off-Site Infrastructure
- Bullee Consulting - Sewage Treatment and Potable Water Treatment
- Hergott Duval Stack and Partners - Taxation and Royalty impacts
- British Sulphur Consultants - Marketing(1)
A summary of the PFS will be filed at http://www.SEDAR.com and will be available at http://www.potash1.com.
The 97,240-acre Legacy Project is Potash One's flagship potash permit area. Located 80km NW of Regina, Saskatchewan, the 100% owned Legacy Project is a green-field potash solution mine in the pre-feasibility stage of development.
The resource estimate for the Project was significantly increased in May 2009, with an updated NI 43-101 Technical Report prepared by Agapito Associates of Grand Junction, Colorado and North Rim Exploration of Saskatoon, Saskatchewan (See Potash One Inc. News Release dated May 14, 2009). The May 2009 Report stated that the project had a measured resource of 29 million recoverable tonnes of KCl product, an Indicated Mineral Resource of 222 million recoverable tonnes of KCl product, and an Inferred Mineral Resource of 853 million recoverable tonnes of KCl product.
The updated Measured and Indicated resource estimate provides support for Legacy's potential to become a 2.5 million tonnes per annum solution-mining operation for more than 100 years.
All of the above listed companies have reviewed and authorized the disclosure of the content of this news release related to their respective contributions to the study. Mike Ferguson, P.Eng., Vice President, Projects for Potash One Inc. is a Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer
About Potash One Inc.:
Potash One Inc. is a well-funded TSX-listed Canadian resource company engaged in the exploration and development of advanced potash properties amenable to solution mining. The Company owns 100% of more than 515,000 acres of contiguous Potash Subsurface Exploration Permits in Saskatchewan, Canada. It includes the 97,240 acre Legacy Project which has an NI 43-101-compliant Measured Resource of 29 million tonnes of KCl, Indicated Mineral Resource of 222 million tonnes of KCl and an Inferred Mineral Resource of 853 million tonnes of KCl. The Legacy Project is adjacent to the largest producing solution potash mine in the world.
Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Statements in this press release other than purely historical information, including statements relating to the company's future plans and objectives or expected results, constitute forward-looking statements. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the company's business, including risks inherent in mineral exploration and development. The company does not assume the obligation to update any forward-looking statement. There are numerous risks and other factors that will influence a development decision, including concluding resource evaluations on mineral properties, extraction and processing design limitations, financing requirements, permitting risks and economic factors, all of which may be beyond the control of the company.
(1) British Sulphur Consultants (BSC), an internationally respected fertilizing market analysis firm has provided a confidential market report to Potash One, forecasting future potash demand and associated pricing. BSC provided a range of expected potash prices and to maintain a conservative stance, Potash One has used the lower values of the annual ranges in its financial analysis. BSC also provided a Q2 2009-normalized flat line average price of $US 525 per tonne of KCl, FOB Vancouver.
The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.
Contact:
Contacts:
Potash One Inc.
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
(604) 331-4431
(604) 408-4799 (FAX)
info@potash1.com
www.potash1.com
Source: Potash One Inc.
Passport Metals Inc.: Holbrook Drilling Permit Received
Mon Jun 15, 6:00 AM
http://ca.news.finance.yahoo.com/s/15062009/28/link-f-ccnmatthews-passport-metals-inc-holbrook-drilling-permit-received.html
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2009) - Passport Metals Inc. (TSX VENTURE: PPI.V) has received the drilling permit from the Arizona State Land Department for the Holbrook Potash Project in east central Arizona. Passport plans to commence with the drilling program as recommended by independent Qualified Person Steve Butrenchuk, P.Geol. (Alberta) within two to three weeks.
Historic drilling in the 1960's and 1970's by Arkla Exploration Company and Duval Corporation included 9 holes on the current Passport holdings. Five of the 9 holes were assayed with potash values ranging from 11.05% K2O to 14.59% K2O all over 1.2 metres (4 feet). Passport will initially complete 5 reverse circulation / diamond drill holes, including twinning some the historic holes, to verify the potash horizon and historic grades and then continue drilling to allow the completion of an NI43-101 resource estimate.
The Passport exploration permits lie in the Holbrook basin, an evaporite basin underlying 1,550 square kilometres (600 square miles) of east central Arizona. Passport has the right to earn a 100% interest, subject to a 1% Net Smelter Return (NSR) royalty in 3,210.5 hectares (7,933.31 acres) within the potash bearing portion of the basin.
Potash mineralization within the Holbrook basin is located at about 365 to 396 metres below surface. Maximum thickness of the potash is about 12.2 metres. Previous exploration has shown the potash mineralization consists of sylvite, carnallite and polyhalite.
There have been two estimates for the entire potash component of the Holbrook basin. The area of the Holbrook basin underlain by potash is 1,550 square kilometers or 155,000 hectares. Carr (1966) estimated a geological target of 256.9 million tonnes of potash at an average grade of 19.76% K2O. Rauzi (2008) reviewed all available data and estimated a geological target for the entire Holbrook basin of 682 million tonnes of potash at 6% K2O to 2.58 billion tonnes of potash at 20% K2O.
The current Passport holdings comprise a total of 3,210.5 hectares, suggesting these holdings could host 2.07% of the total geological target or 14.1 million tonnes of potash at 6% K2O to 53.4 million tonnes of potash at 20% K2O.
There are no current 43-101 mineral reserves or resources on Passport's Holbrook basin Potash Project holdings. The potential quantities and grades indicated are conceptual in nature. At this time, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the discovery of these mineral resources.
Passport is acquiring a 100% interest, subject to a 1% NSR, in the 12 Holbrook exploration permits by making payments of up to $1,000,000 over two years and issuing 250,000 shares and 1,000,000 warrants exercisable for a further 1,000,000 shares. Passport also has to complete minimum exploration commitments of US$200,000 on the Property.
A National Instrument 43-101 Technical Report on the Holbrook Property is available on the Company's website www.passportmetals.net and also under the Company's profile on SEDAR: www.sedar.com.
R. Tim Henneberry, P. Geo., a Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
PASSPORT METALS INC.
Laara Shaffer, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts
Laara Shaffer
Passport Metals Inc.
Director
(604) 687-0300
(604) 687-0151 (FAX)
www.passportmetals.net
Western Potash Intersects 19.9 m of Combined Potash Mineralization Grading 17.2% K2O From the First Well at Milestone, Completes Drilling Second Well
Mon Jun 15, 9:53 AM
http://ca.news.finance.yahoo.com/s/15062009/60/western-potash-intersects-19-9-m-combined-potash-mineralization-grading.html
VANCOUVER, BRITISH COLUMBIA -- Western Potash Corp. (the "Company") (TSX VENTURE: WPX.V)(FRANKFURT: AHE.F) is pleased to announce that it has received results from its first potash exploration well on the Milestone property in southern Saskatchewan. The first well targeted potash prospective sequences within the Prairie Evaporite formation, and was drilled to define the extent, grade, thickness and type of potash mineralization present on the property. The well was drilled vertically to a total depth of 1,776m. Coring commenced at a depth of 1,640m, and intersected the Prairie Evaporite Formation at a depth of 1,657m. The well intersected a total of 19.9 m of potash mineralization with an average grade of 17.2 wt.% K2O across three potash bearing members. A summary of the results from this drilling are summarized in Table 1. All drill intercepts noted in this release are considered the true thickness of the mineralization, as the salt beds are relatively flat lying and the holes were drilled vertically.
Table 1: Potash thickness and weighted average grade from the
Milestone - 001 well.
----------------------------------------------------------------------------
Inter- Insol-
From To val K2O MgO uble
Potash Member (m) (m) (m) Wt % Wt % Wt % Best Intercept
----------------------------------------------------------------------------
Patience Lake 1661.5 1671.1 9.6 16.77 0.08 11.66 20.0 wt% K2O over 6.6m
----------------------------------------------------------------------------
Belle Plaine 1673.6 1677.9 4.3 14.42 0.09 5.45 18.5 wt% K2O over 2.7m
----------------------------------------------------------------------------
Esterhazy 1697 1703 6 19.96 1.2 3.57 23.46 wt% K2O over 3.9m
----------------------------------------------------------------------------
Note: The core recovered from this hole was logged, photographed, split, and
sampled at the Company's secure core storage facility on the property. All
samples were handled in accordance with the Company's Chain of Custody
procedures. The half-split core samples from the wells were analyzed at the
Saskatchewan Research Council (SRC) Laboratory in Saskatoon. The Laboratory
has been certified by the Standards Council of Canada (SCC) to conform to
the requirements of ISO/IEC 17025:2005 (CAN-P-4E).
MagIndustries Announces Updated Technical Report and Clarifies Previous Disclosure
Thu Jun 11, 2:17 PM
http://ca.news.finance.yahoo.com/s/11062009/28/link-f-ccnmatthews-magindustries-announces-updated-technical-report-clarifies-previous-disclosure.html
TORONTO, ONTARIO--(Marketwire - June 11, 2009) - MagIndustries Corp. (the "Company") (TSX VENTURE: MAA.V) is pleased to announce that it has filed an updated National Instrument 43-101 ("NI 43-101") compliant technical report entitled "Updated Reserve and Resource Estimate for MagMinerals Kouilou Potash Project, Republic of Congo" dated June 10, 2009 (the "2009 Technical Report") in respect of the property held by its wholly-owned subsidiary MagMinerals Potash Corp. The Technical Report updates the 43-101 technical report filed on December 1, 2008 (the "2008 Technical Report").
The 2009 Technical Report updates a number of areas in the 2008 Technical Report including, but not limited to:
- A minor decrease in the total reserve and resource estimates as a result of a change in the area available for the brinefield as a result of the finalization of the land use and occupation survey.
- The 2009 Technical Report indicates proven and probable reserves of 33.2 million tonnes of potash which can support a reserve life of more than 54 years at a projected production rate of 600,000 tonnes per year. The 2009 Technical Report estimates proven reserves of 151.2 million tonnes of carnallitite, at a carnallite grade of 64.4% of ore and a KCl grade of 17.3% of ore, concluding with proven reserves of 26.1 million tonnes of KCl. The 2009 Technical Report further estimates probable reserves of 40.3 million tonnes of carnallitite, at a carnallite grade of 65.7% of ore and a KCl grade of 17.6% of ore, concluding with probable reserves of 7.1 million tonnes of KCl.
- This compares to the 2008 Technical Report which indicated proven and probable reserves of 33.5 million tonnes of potash which could support a reserve life of more than 54 years at a projected production rate of 600,000 tonnes per year. The 2008 Technical Report estimated proven reserves of 155.0 million tonnes of carnallitite, at a carnallite grade of 64.2% of ore and a KCl grade of 17.2% of ore, concluding with proven reserves of 26.7 million tonnes of KCl. The 2008 Technical Report further estimated probable reserves of 33.2 million tonnes of carnallitite, at a carnallite grade of 63.9% of ore and a KCl grade of 17.2% of ore, concluding with probable reserves of 6.8 million tonnes of KCl.
- An increase in the estimated capital expenses of Phase 1 of the Kouilou potash project from US$723 million to US$835 million due, in part, to the inclusion of the 26 km gas pipeline between the Djeno gas treatment plant and the Kouilou project site, an increase in material costs (mainly an increase in the price of steel), and an increase in the indirect costs.
- An increase in estimated operating expenses of Phase 1 of the Kouilou potash project from US$83 per tonne of K60 to US$124 per tonne of K60 resulting from, among other things, an increase in the cost of natural gas, based on the finalization of a fixed-price (US$1.20/million BTU), 13-year gas supply agreement.
- An increase in the assumption of the base potash price for 2012 of US$649 from US$464 net realized price per tonne of KCl (based on current third-party potash price forecasts).
The overall recommendations of the authors of the 2009 Technical Report remain unchanged and they conclude that, using the base case, the Kouilou potash project's internal rate of return is estimated at 23% with the net present value estimated at US$914 million using a discount rate of 12%. Assuming total project costs of US$1.2 billion, pay back is achieved in approximately five years, assuming cumulative cash flows from operations for the period 2012 to 2016.
Clarification
In connection with the review by the Ontario Securities Commission (the "OSC") of the Company's amended and restated preliminary prospectus filed with the OSC and certain other provincial regulatory authorities on June 2, 2009, the Company has been requested to issue a press release in respect of certain of its previous disclosure relating to the Kouilou potash project (the "Project").
Specifically, the OSC has noted that certain of the Company's previously filed continuous disclosure documents did not include the grade information for each category of mineral resource and reserves in accordance with Section 2.2(d) of NI 43-101. In particular, the information contained in news releases of the Company dated December 29, 2008, March 26, 2009 and April 16, 2009, in the management's discussion and analysis of financial results for the year ended December 31, 2008, in the annual information form for the year ended December 31, 2008 dated May 27, 2009 and on the Company's website, which disclosed potash resource and reserve estimates without also stating the grade or quality and quantity for each category of the mineral resource and mineral reserve and is expressly prohibited by NI 43-101. Accordingly, such information should not be relied upon.
The Company hereby confirms that its current mineral resource and mineral reserve estimates at the Kouilou potash project are as set out in the following excerpt taken from the 2009 Technical Report filed on SEDAR at www.sedar.com on June 11, 2009.
The estimated resources of each category for Horizon 1, Horizon 2, Horizon 3 and Horizon 4 are presented in the table below. Already excluded from these resources are areas with geological and technical exclusion zones (approx. 35 % reduction) and mining losses assuming the use of a solution mining method have also been accounted for.
-----------------------------------------------------------------------
Horizon 1 Horizon 2 Horizon 3 Horizon 4 Total
-----------------------------------------------------------------------
Measured resources
Million tonnes of
carnallitite - 38.1 22.4 86.2 146.7
Carnallite grade of
ore (%) - 44.2 90.0 67.4 64.9
KCl grade of ore (%) - 11.8 24.1 18.1 17.4
Million tonnes of KCl - 4.5 5.4 15.6 25.5
-----------------------------------------------------------------------
Indicated resources
Million tonnes of
carnallitite - 9.2 5.4 24.9 39.5
Carnallite grade of
ore (%) - 44.8 89.3 68.9 66.1
KCl grade of ore (%) - 12.0 23.9 18.5 17.7
Million tonnes of KCl - 1.1 1.3 4.6 7.0
-----------------------------------------------------------------------
Inferred resources
Million tonnes of
carnallitite 427.6 191.9 113.7 482.5 1215.7
Carnallite grade of
ore (%) 63.6 44.1 90.0 66.3 64.1
KCl grade of ore (%) 17.1 11.8 24.1 17.8 17.2
Million tonnes of KCl 73.0 22.7 27.5 85.8 209.0
-----------------------------------------------------------------------
The estimated reserves of each category for Horizon 2, Horizon 3 and
Horizon 4 are presented in the table below.
-----------------------------------------------------------------------
Horizon 2 Horizon 3 Horizon 4 Total
-----------------------------------------------------------------------
Proven reserves
Million tonnes of
carnallitite 39.3 22.4 89.5 151.2
Carnallite grade of
ore (%) 44.2 90.0 67.1 64.4
KCl grade of ore (%) 11.8 24.1 18.0 17.3
Million tonnes of KCl 4.6 5.4 16.1 26.1
-----------------------------------------------------------------------
Probable reserves
Million tonnes of
carnallitite 9.2 5.4 25.7 40.3
Carnallite grade of
ore (%) 44.5 89.4 68.2 65.7
KCl grade of ore (%) 11.9 24.0 18.3 17.6
Million tonnes of KCl 1.1 1.3 4.7 7.1
-----------------------------------------------------------------------
Lara Delineates Phosphate Targets in Colombia
Tue Jun 9, 7:30 AM
http://ca.news.finance.yahoo.com/s/09062009/28/link-f-ccnmatthews-lara-delineates-phosphate-targets-colombia.html
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2009) - Lara Exploration Ltd. ("Lara" or "the Company") (TSX VENTURE: LRA.V) is pleased to report that it has registered claims, totaling approximately 80,000 hectares, covering a series of high-grade phosphate beds in the Cretaceous sedimentary sequences in the Boyaca District of the Central Colombian Andes. There are three main phosphate-bearing units within the sequence. In various places these phosphate beds are mined on a small-scale to produce 25-35% P2O5 phosphate rock, which is generally milled and consumed locally as direct application fertilizer.
The claim blocks, denominated Tasco, Tota, Iza and Nueva Colon, cover synclinal and anticlinal fold structures, where the mineralized units are repeated and can be traced at surface for many kilometers. Fieldwork has comprised field checks and stratigraphic mapping to delineate the areas with the thickest and most extensive phosphate units. To date the most promising target is Iza, on the western flank of the San Miguel syncline, where the upper phosphate unit comprises stacked massive phosphate beds with an aggregate thickness of more than 4 meters. This synclinal fold is 15 kilometers long and 2 kilometers wide, with the target phosphate bed exposed on both flanks of the fold (i.e. approximately 30 kilometers of near-surface extension). The Company plans to conduct more detailed mapping and systematic channel sampling around the San Miguel syncline and other priority targets in the coming months, aiming to delineate potentially bulk-mineable areas.
The Boyaca claims are held indirectly through Colombia Alliance (BVI) Ltd., a joint venture company held 70% by Lara Alliance (BVI) Ltd., and 30% by Colombian consulting group Geotec. Lara Alliance (BVI) Ltd., is in turn owned 50% by Lara and 50% by Sprott Resource Corp.
Quality Control
Michael Bennell, Lara's Vice President Exploration and a member of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, and is responsible for the preparation and verification of the technical information in this release.
About Lara
Lara is a well-funded prospect generator, with a multi-commodity exploration portfolio in Brazil, Colombia and Peru. Lara's common shares trade on the TSX Venture Exchange under the symbol "LRA".
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contacts
Miles Thompson
Lara Exploration Ltd.
President
(604) 669-8777
Kim Casswell
Lara Exploration Ltd.
Corporate Secretary
(604) 669-8777
Julia Maxwell
Lara Exploration Ltd.
Investor Relations
(604) 669-8777
(604) 688-1157 (FAX)
Chris MacIntyre
Lara Exploration Ltd.
Investor Relations
(416) 640-1932
info@laraexploration.com
www.laraexploration.com
BHPB potash project may cost US$10 billion
http://www.mining-journal.com/production-and-markets/bhpb-potash-project-may-cost-us$10-billion
Publishing Date
02 Jun 2009 3:32pm GMT
Author
Mining Journal
BHP Billiton may need to spend US$10 billion to develop a potash project in Canada, Goldman Sachs JBWere Pty said.
Once completed, the Jansen mine may be able to supply as much as 8Mt/y, equivalent to about 15% of global sales, Goldman analysts led by Neil Goodwill said in a report.
Demand for potash, used mostly in fertiliser, may increase as population growth forces the world’s farmers to grow more food more efficiently to save space, Mr Goodwill said. At current prices, the global potash market is worth US$28 billion, he said.
“Growth has been around 3% per annum with India and China having the potential for significantly increasing this growth trend,” Mr Goodwill said. “We would expect BHP to look to acquire if the conditions are right in order to accelerate its potash position and reduce the marketing risk.”
Construction may begin at Jansen in July 2011, with first production in January 2015, BHPB said in a document lodged with the Saskatchewan Ministry of Environment in November. It may take 10 years to reach capacity, the company said.
Chief executive Marius Kloppers said in February that BHPB’s expansion preference in potash would be through the purchase of producing mines rather than undeveloped deposits.
Americas Petrogas Signs Surface Rights Agreement for Bayovar Potash Brine Reservoir and Evaporite Deposit
Tuesday June 2, 5:24 pm ET
http://ca.us.biz.yahoo.com/iw/090602/0507130.html
CALGARY, ALBERTA--(MARKET WIRE)--Jun 2, 2009 -- Americas Petrogas Inc. (CDNX:BOE.V - News) ("Americas" or the "Company") (TSXV: BOE) announced today that it has, through its wholly owned subsidiary, Americas Potash Peru SA ("Potash Peru"), signed an agreement (the "Surface Rights Agreement") with the Community Foundation of San Martin de Sechura (the "Foundation") that permits Americas the unconditional right of surface access in respect of the Company's Ramon and Zapayal potash brine reservoirs and evaporite deposit located on the Company's 82,195 hectare (approximately 203,000 acres or 821 sq.km.) Bayovar concession in the Sechura Desert in Northwest Peru. As part of the Surface Rights Agreement, Potash Peru has released to the Foundation a payment to be used for local community projects.
With the signing of the Surface Rights Agreement, all of the requirements contemplated in Americas' option agreement (the "Bayovar Agreement") with the Agency for Promotion of Private Investment of the government of Peru ("ProInversion") to be able to acquire the Bayovar potash brine concession have been satisfied. The Company is proceeding with the investments in the concession such as additional resource assessments, environmental assessments, exploration and other feasibility work. A summary of the main terms and conditions of the Bayovar Agreement were previously disclosed.
The signing of the Surface Rights Agreement occurred at a signing ceremony in the Sechura town community and was attended by a number of important local, regional and national dignitaries including:
- President Dr. Cesar Trelles Lara on behalf of the region of Piura;
- Mr. Paiva Dante Garcia, President on behalf of the Community Foundation of San Martin Sechura;
- Mr. Jorge Merino Tafur on behalf of ProInversion; and
- Ms. Rosa Marina Leon Flores, Peru's representative to the Andean Parliament.
Also in attendance were many individuals from the civil authorities and the community.
Mr. Carlos Lau, Chairman of Americas Petrogas Inc. commented that "The signing by Americas Potash Peru SA of the Surface Rights Agreement with the Community Foundation represents an historical and very pleasing day for the company because it has allowed us to secure the approval and support of the local community and the region of Piura which is essential to permit Americas Potash Peru SA to develop a future fertilizer and specialty chemicals project in a relatively short period of time." Mr. Lau went on to say, "We wish to thank the Community Foundation, President Dr. Cesar Trelles Lara and ProInversion for their hard work and ongoing dedication in securing this important agreement and we look forward to working with all of them in the future."
Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
Contact:
Contacts:
Americas Petrogas Inc.
Barclay Hambrook, P. Eng., MBA
President and CEO
(403) 685-1888
(403) 685-1880 (FAX)
Email: inquiries@americaspetrogas.com
Website: http://www.americaspetrogas.com
Source: Americas Petrogas Inc. and Americas Potash Peru SA
Athabasca Potash Inc. Announces an Updated Potash Resource Estimate for the Burr Project Including 425 Million Tonnes of Measured & Indicated Mine
Fri May 29, 11:14 AM
http://ca.news.finance.yahoo.com/s/29052009/28/link-f-ccnmatthews-athabasca-potash-inc-announces-updated-potash-resource-estimate.html
SASKATOON, SASKATCHEWAN--(Marketwire - May 29, 2009) - Athabasca Potash Inc. ("API" or the "Company") (TSX: API.TO) is pleased to announce an updated National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant potash resource estimate for the Burr Project prepared by Lions Gate Geological Consulting Inc. ("LGGC"). The targeted mining members, including both the Upper Patience Lake ("UPL") and Lower Patience Lake ("LPL") Sub-Members, contain Measured Mineral Resources of 125,800,000 tonnes at a grade of 21.27% potassium oxide ("K2O"), Indicated Mineral Resources of 299,000,000 tonnes at a grade of 23.07 % K2O, and Inferred Mineral Resources of 186,900,000 tonnes at a grade of 23.55% K2O. The updated resource estimate has an effective date of May 22, 2009.
The updated resource estimate is based on 17 potash test wells, including new assay results from three test wells - Burr08-13-19, Burr08-01-32 and Burr08-09-34 - that were not included in the mineral resource estimate announced on September 29, 2008. New assay results were also used for two test wells included in the 2008 resource estimate, Burr08-04-23 and Burr08-16-36. In the 2008 mineral resource estimate, equivalent or eK2O results were used for these test wells. The assay results received to date for the 2008 test well core samples have corroborated the eK2O results used in the 2008 mineral resource estimate. API was given permission by the Saskatchewan government to sample some previously unsampled core in the historical drill hole Burr-04-14. The assay results returned high grade potash mineralization that increased the thickness of the potash intersection in this test well and has been included in the updated resource estimate.
The confidence level and sufficient tonnage of the Measured and Indicated Mineral Resource of 424,800,000 tonnes in the Burr Project is sufficient to support API's Pre-feasibility Study (the "Pre-feasibility Study") being led by SNC-Lavalin Inc. The Pre-feasibility Study is expected to be completed in the third quarter of 2009. A new NI 43-101 compliant technical report will be prepared by SNC-Lavalin Inc. upon completion of the Pre-feasibility Study. "This resource update confirms management's assumptions and validates the potential development of the Burr Project as a potential low operating cost conventional potash mine" states Dawn Zhou, President and Chief Executive Officer.
Polygonal Resource Tabulation for the Burr Project 2009 Mineral Resource
Update
(Tonnages are Net of Deductions for Freehold Lands, Identified Collapse
Structures and a 35% Extraction Ratio, May 22, 2009)
----------------------------------------------------------------------------
Tonnes K2O(1) MgO Carnallite H2O Insol(1)
(t) (%) (%) (%) (%)
----------------------------------------------------------------------------
LPL Measured 125,800,000 21.27 0.07 0.51 5.67
LPL Indicated 191,000,000 24.28 0.08 0.54 5.94
LPL M&I 316,800,000 23.09 0.08 0.53 5.83
LPL Inferred 117,500,000 23.97 0.08 0.52 5.75
----------------------------------------------------------------------------
UPL Indicated 108,000,000 20.93 0.08 0.53 6.55
UPL Inferred 69,400,000 22.84 0.08 0.53 6.25
----------------------------------------------------------------------------
Total Measured 125,800,000 21.27 0.07 0.51 5.67
Total Indicated 299,000,000 23.07 0.07 0.45 5.48
Total M&I 424,800,000 22.54 0.07 0.47 5.28
Total Inferred 186,900,000 23.55 0.07 0.49 5.07
----------------------------------------------------------------------------
(1) The summary value at the bottom of this column is inclusive of the eK2O
and eInsol values.
Assay Results for Burr-04-14 and the 2008 Potash Test Well Intersections
Included in the Burr Project 2009 Mineral Resource Update
----------------------------------------------------------------------------
From To Width eK2O K2O MgO Carnallite Water
Total Insoluble
m m m wt % wt % wt % wt % wt %
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Upper Patience Lake Sub-Member
Burr08-13-19 939.39 946.01 6.62 22.05 0.08 0.56 6.51
Burr
08-01-32 927.92 934.25 6.33 25.20 0.06 0.43 5.47
Lower Patience Lake Sub-Member
Burr-04-14 957.41 964.08 6.67 19.70 0.05 0.32 3.17
Burr08-01-34 931.56 936.24 4.68 28.01 0.08 0.54 5.01
Burr08-04-23 940.30 945.30 5.00 24.3 Assay Results Pending 7.6
Burr08-16-32 945.97 950.15 4.18 24.63 0.11 0.74 6.39
Burr08-16-36 939.40 943.60 4.20 22.8 Assay Results Pending 6.3
Burr08-09-34 940.95 945.11 4.16 23.61 0.08 0.55 4.46
----------------------------------------------------------------------------
Canada’s junior miners pose threat to potash cartel
2009-05-29 15:10:00
http://www.commodityonline.com/news/Canada%EF%BF%BDs-junior-miners-pose-threat-to-potash-cartel-18218-3-1.html
The dominance of Canada’s high-powered cartel of three major potash producers may come to an end if a couple of small but well-financed potash exploration upstarts continue their winning ways.
Both Western Potash Corp. (TSX.V: WPX) and Potash One Inc. (TSX: KCL) have made impressive headway recently in their quest to muscle-in on Canada’s highly lucrative potash mining business.
Earlier this week, Vancouver-based Western Potash received a major shot in the arm by way of impressive drilling results from its Milestone Property in southern Saskatchewan. Notably, the project is located in close proximity to one of the largest solution-extraction (low-cost) potash mines in the world – Mosaic’s multi-billion-dollar Belle Plaine Mine – which has been mined for over 40 years and is still going strong.
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Western Potash’s flagship property also borders the Regina Potash Property, which is being aggressively developed by Brazil-based Vale Inco, the second largest mining company in the world. Vale Inco hasn’t publicized its drill results but they are rumoured to be very impressive.
This is particularly encouraging for Western Potash, which believes it now has evidence of comparable results on its own adjoining property. All of which suggests that an expansive, potentially word-class solution-extraction deposit may be in the making – one that straddles both properties.
Western Potash’s president, Patricio Varas, points out that his company’s first drill hole (known as a ‘well’ due to its extremely wide bore) at the Milestone Property intersected 24.5 metres of potash mineralization.
“Visual interpretation of gamma ray logs from this zone suggests a moderate to strong potash grade within this zone,” he added in a May 26 news release.
Furthermore, the high temperatures encountered (a minimum of 62 degrees Celsius) in this initial deep hole offer further encouragement by way of reducing the energy requirements for any future solution mine. In other words, ideal geological conditions exist for what could prove to be one of the world’s most energy-efficient and therefore cost-efficient potash mines, according to company spokesperson John Costigan.
Western Potash plans to drill at least two more deep holes (or wells) to better understand the overall size, grade, thickness and type of potash mineralization hosted by the Milestone Property. In turn, this would form the basis for a resource calculation later this year, assuming that future drilling continues to yield promising results. On this note, the company’s seismic survey results are reported to demonstrate the existence of mineralization beneath each of these upcoming drill hole locations.
Meanwhile, the company’s initial drilling results are “positive,” according to Robert Winslow, a Toronto-based mining analyst with the investment firm Wellington West Capital Markets Inc. Even though a single encouraging drill hole result does not make a mine, it certainly helps to establish Western Potash’s credentials as a bright prospect, he told BNW Business News Wire.
And if the Chinese are interested in shopping around for emerging potash resources in Saskatchewan, then the continuation of such upbeat drill results would certainly give Western Potash “a seat at the table,” Winslow added.
About 100 kilometres to the north of the Milestone Property, Potash One is aggressively moving forward with its mandate to build Canada’s first new potash mine in over 40 years at its Legacy Project. The company’s lofty ambitions recently received a major boost with the arrival of its new chairman, Robert Friedland, earlier this month.
The mining magnate is best-known as the man behind the epic Voisey's Bay nickel discovery in the remote Labrador region of eastern Canada. His company later sold the deposit to the mining multinational Inco Ltd. (now Vale Inco) for the princely sum of Cdn. $4.3 billion.
Vancouver-based Potash One is looking to raise enough money to conduct a feasibility study (a blueprint for a mine) and then commercialize the solution-extraction-amenable Legacy deposit. Most experts agree that a mine would cost upwards of Cdn. $1 billion. And that’s a tall order for such a small company.
However, Friedland is one of world’s most adept mining financiers, with close ties to deep-pocketed business interests in Southeast Asia. He is acutely aware that China would love to own its own Canadian potash supplies, rather than being beholden to a seemingly omnipotent Canadian potash cartel. One that dictates the high prices that China has to pay for an increasingly indispensible nutrient for its burgeoning agriculture industry.
Chinese potash inventories are reported to be very low but the Chinese government has yet to sign a new annual supply contract with Canpotex Ltd. – the joint international marketing unit of Saskatchewan’s three big producers. Negotiations have become protracted as Chinese importers continue to balk at paying dizzying record high prices. A recent spot price of around $750 per metric ton represents a nearly four-fold increase over 2007’s average prices.
Minemakers improves Bonaparte takeover offer
http://www.miningweekly.com/article/minemakers-improves-bonaparte-takeover-offer-2009-05-27
By: Esmarie Swanepoel
27th May 2009
Updated 2 hours 25 minutes ago
JOHANNESBURG (miningweekly.com) – ASX-listed exploration company Minemakers on Wednesday improved its all share offer for phosphate-explorer Bonaparte.
In March, Minemakers made a conditional scrip offer for all the shares in Bonaparte, on the basis of one Minemakers share for every ten Bonaparte shares, focusing on Bonaparte’s Namibian marine phosphate project.
Minemakers has now improved its takeover bid by offering one share for every nine Bonaparte shares. However, this was subject to Minemakers obtaining a relevant interest of 90% in Bonaparte shares, during the offer period.
If Minemakers did not receive the relevant interest of 90%, then the previous offering of one share for every ten Bonaparte share would stand.
Bonaparte has previously advised its shareholders to accept Minemakers’ offer, stating that it had been deemed fair and reasonable, and that an independent expert had valued one Minemaker share at a greater value than ten Bonaparte shares.
In May, Minemakers acquired majority control over Bonaparte, when it increased its stake in the Nambia-focused explorer to 50,5%.
Meanwhile, Minemakers has also offered its shareholders the chance to participate in a share purchase plan (SPP).
Under the SPP, eligible shareholders would have the opportunity to subscribe for up to $15 000 worth of fully paid shares in Minemakers, at a price of 43c a share, which is equal to 80% of the volume weighted average price of existing shares.
As an added incentive, each Minemakers shareholder participating in the SPP would receive one free option to acquire one fully paid Minemakers share exercisable at 75c, at any time up to May 31, 2010, for every two shares granted under the SPP.
Mountain Capital Signs Amending Agreement And Receives NI43-101 Report On The Vermillion 15 Potash Property
Wed May 27, 11:26 AM
http://ca.news.finance.yahoo.com/s/27052009/60/mountain-capital-signs-amending-agreement-receives-ni43-101-report-vermillion.html
The Company is pleased to announce that it has signed an Amending Agreement with respect to the terms of its purchase of a 100% interest in the Vermillion 15 Potash Property located in east central Alberta from Zimtu Capital Corp., Jody Dahrouge and Spectre Investments Inc. (collectively, the "Vendors"). The Vermillion 15 Potash Property consists of four metallic and industrial minerals permit applications recently awarded through private bid by the Department of Energy, Alberta, encompassing approximately 77,665 acres (31,430 ha) located approximately 30 km west to southwest of Lloydminster, Saskatchewan.
Under the amended terms, the Company will pay to the Vendors the sum of $130,000 CDN (of which $100,000 has been paid) and issue to the Vendors an aggregate of 1,683,334 units, each comprised of one common share of the Company and one non-transferable share purchase warrant exercisable for a period of two (2) years to purchase one additional common share of the Company at a price of $0.25 per share in the first year and at a price of $0.35 in the second year. In connection with the acquisition, the Company will pay a finder’s fee in cash, shares, or both, to the extent permitted under the policies of the TSX Venture Exchange (the "Exchange"). The acquisition remains subject to the approval of the Exchange.
The property is underlain by the Prairie Evaporite Formation at depths that range from approximately 1050 to 1200 meters. It is also the site of the historic Vermillion No. 15 Well (VCO No. 15), which encountered substantial quantities of sylvite within the uppermost 50 feet of the Prairie Evaporite Formation. Golden (1965) reported “The potash minerals in the VCO #15 well are of the same composition and depositional sequence and depth as the potash at Unity, and it is feasibly possible that the potash in VCO #15 and Unity are one large continuous deposit”.
At Unity, Saskatchewan, which is about 50 km east of the Alberta-Saskatchewan border, the Verbata No. 2 contained 21.64% K2O across 11 feet at a depth 3,466 feet (1057 meters; Cole, 1948). When the Vermilion No. 15 Well was drilled during 1944/45; the cores (Golden, 1965) “were exposed for weeks before being spot analyzed. Because of the very high solubility of sylvite, a true and accurate analysis was probably not ascertained, but the core description indicates the presence of sylvite in substantial quantities.”
"We are very excited about the potential of the Vermilion No. 15 Potash Property, as the historic geologic data suggests that this project may be part of a very extensive potash deposit that has not been adequately tested. Our review of gamma-ray logs within the area has shown a number of responses similar in magnitude to those within the Unity Potash Deposit, just across the border in Saskatchewan," said Blair Naughty of Mountain Capital Inc.
This news release has been prepared on behalf of the Mountain Capital Board of Directors, which accepts full responsibility for its contents. The contents of this release have been reviewed and approved by Marvin A. Mitchell, P.Eng. , a qualified person as defined by National Instrument 43-101.
The information contained in this release was taken from a report titled POTASH OCCURRENCE IN THE VERMILION AREA OF THE PROVINCE OF ALBERTA, written by Albert Golden, B. Sc, a petroleum geologist doing work for Economic Minerals, and was dated October 1, 1965.
ON BEHALF OF THE BOARD
Craig Naughty President & Director
For further information contact Craig Naughty at (604) 669-0401, or visit the website at www.mountaincapital.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Western Potash Corp. Completes First Well at Milestone, Three Potash Members Intersected
Tue May 26, 11:15 AM
http://ca.news.finance.yahoo.com/s/26052009/60/western-potash-corp-completes-first-well-milestone-three-potash-members.html
VANCOUVER, BRITISH COLUMBIA -- Western Potash Corp. (the "Company") (TSX VENTURE: WPX.V)(FRANKFURT: AHE.F) is pleased to announce that it has completed its first potash exploration well on the Milestone property in southern Saskatchewan. The Milestone property, comprising approx. 500 square km, is located approximately 30 km southeast of Regina, and southeast of Mosaic's Belle Plaine Mine, one of the largest producing potash solution mines in the world. The property is immediately adjacent to the Regina Potash Property held by Vale, and potash permits held by BHP-Billiton, and Potash One.
Seismic data confirming the presence of potash prospective salt beds on the eastern portion of the Milestone property, have highlighted a sizeable and attractive new exploration target area amenable to solution mining technologies. The exploration area already has water, power, natural gas and rail infrastructure to serve the project, allowing the transportation of the final product to Vancouver and the Asian markets.
The first well, drilled vertically, was drilled to a total depth of 1,776m. Coring commenced at a depth of 1,640m, and intersected the Prairie Evaporite Formation at a depth of 1,657m. A total of 24.5m of potash mineralization was drilled. Visual observation and down hole logging indicate the presence of the following potash members;
Member From (m) To (m) Thickness (m) Patience Lake 1660 1672 12 Belle Plaine 1674 1679 5 Esterhazy 1697.5 1705 7.5
All potash mineralized zones visually display low carnallite content, a critical factor in developing a solution mine, as increased amounts of carnallite decrease the efficiency of cavern dissolution and potash recovery. Insoluble and clay content are also visually low.
Visual interpretation of the gamma ray logs from this zone suggests a moderate to strong potash grade within this zone. The logs also indicate minimum formation temperatures of 62 degrees C, confirming the strong heat anomaly described by Holter (1969) underlying the property. Temperature is important because higher formation temperatures improve the potash dissolution process, and reduce heat input required for the injected brines thereby significantly reducing production costs. The temperatures in this part of the potash belt are considered very good for production of potash from a solution mining operation.
Samples from the three potash zones will now be submitted for analysis at the SRC laboratory in Saskatoon. Results are expected to be obtained within 4-6 weeks.
The Company is very encouraged by the results received to date, as the geological setting and mineralization are consistent with characteristics of other potash deposits in Saskatchewan. The Company plans to drill two additional wells within the Milestone property using a drill rig supplied by Red Dog Drilling Inc. The drill program's purpose is to define the extent, grade, thickness and type of potash mineralization present on the property. All holes will be drilled vertically targeting the Prairie Evaporite formation, which will be conventionally cored using invert drilling fluids so as to not dissolve the salt and potash sequences. Samples will be collected from the potash sequence for description and analysis, and each hole will be logged using industry standard down-hole geophysical logging techniques. The Company has budgeted approximately $5.4 million CAD for this drill program, and will be well positioned to prepare a NI 43-101 compliant resource calculation on the Milestone property during 2009 should drilling results continue to be positive.
Western Potash Corp. is a mineral exploration company engaged in the evaluation, exploration and development of potash mineral properties in Western Canada. The Company intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.
The in-house qualified persons for the purposes of NI 43-101 guidelines are J. Patricio Varas, P. Geo and Dean Pekeski, P. Geo, both of whom have reviewed and approved the contents of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
J. Patricio Varas, President and CEO
This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Western Potash Corp. J. Patricio Varas President and CEO 604 689-9378 604 689-8199 (FAX) www.westernpotash.com
SOURCE: Western Potash Corp.
http://www.westernpotash.com
Talon Metals Acquires Potash Exploration Projects in Brazil
Mon May 25, 12:24 PM
http://ca.news.finance.yahoo.com/s/25052009/30/link-f-cnw-talon-metals-acquires-potash-exploration-projects-brazil.html
Exploration Licences Granted for Juruena Gold Project in Brazil
TSX:TLO
ROAD TOWN, Tortola, British Virgin Islands, May 25 /CNW/ - Talon Metals Corp., ("Talon" or the "Company") (TSX: TLO.TO) today announces that it has concluded an agreement with Kmine Holdings Ltd. ("Kmine"), a private company, to acquire a 100% interest in Bancor Mineracao Ltda. ("Bancor"), a Brazilian subsidiary of Kmine. Bancor has eight potash project areas in the Sergipe and Alagoas States of Brazil comprising a total of 36,402 hectares (89,951 acres) for which it holds exploration licenses for potash or has applied for exploration licenses.
Separately, Talon was recently awarded the exploration rights to the Juruena Gold Project in Mato Grosso State, Brazil from the Departamento Nacional de Produção Mineral ("DNPM").
"The acquisition of the potash exploration licences from Kmine conforms to our strategy to acquire interests in holdings that have the potential to become substantial projects," said Mr. Stuart Comline, President and CEO of Talon. "It also underlines our belief that, under the current uncertain circumstances and a depressed commodity market, it is important to acquire strategic holdings in commodities that may have a more settled future. We will continue to review other potash opportunities, as well as gold opportunities that have the potential to host substantial deposits."
The Bancor Potash Projects and the Kmine Agreement
Bancor holds the exploration rights on 17,473 hectares (43,176 acres) in three project areas and has applied for the exploration rights on an additional 18,929 hectares (46,774 acres) in five further project areas. All of these potash projects are in the Sergipe and Alagoas states of Brazil. The project areas are in the same sedimentary basin as established oil producing areas and the nearby Taquari-Vassouras potash mine, which is operated by Vale and produced 607,000 tonnes of potash in 2008.
A considerable amount of exploration data exists for the area, mainly from the oil industry including one well in Bancor's Sergi project area which intersected a cumulative 25 metres of potash mineralization in three sedimentary units. Other wells in, or close to, the Bancor project areas have also intersected potash mineralization. The existing exploration data will be reviewed as part of Talon's exploration program, which will commence immediately.
Under the terms of the agreement with Kmine, Talon has acquired a 100% interest in Bancor, for cash payments of US$20 million, payable over 10 years, of which US$375,000 was payable on closing of the agreement and again at the commencement of the second year. Thereafter, further incremental payments are made annually on the third, fourth and fifth anniversaries of the closing date of the agreement and the final payment is payable on the tenth anniversary of the closing date. The agreement allows for Talon to make payments from the end of the second year, part in Talon shares (50% of each payment) and part in cash. The amount payable in Talon shares is equivalent to 47% of the full purchase consideration. Furthermore, Talon may withdraw from the agreement at any time and return the Bancor shares to Kmine.
Potash is a major component of fertilizers and Brazil is a large consumer of this commodity in its extensive agricultural industry. Brazil imports most of its potash as currently only about 10% of its consumption is produced domestically. Furthermore, world potash demand has increased 35% on a cumulative basis between 2000 and 2007 and industry projections are for further increases in demand. However potash deposits are not readily found in many regions of the world. In fact 84% of world potash production is currently supplied by only five countries.
The Juruena Gold Project
On April 30, 2009 the DNPM in Brazil granted Talon a 6,369 hectare (15,739 acre) exploration license for the Juruena Gold Project ("Juruena") in the Alta Floresta gold district in the Mato Grosso State, some two years after the Company submitted a tender for the exploration rights. Juruena, which previously had been one of the major garimpeiro mining sites in Brazil, has an estimated historical production of some 250,000 ounces of gold, mainly from shallow alluvial and saprolite deposits from eleven pits. The hard rock target here is a series of multiple quartz veins hosted in alteration zones within granites. The Company is undertaking a more detailed assessment of previous mining and exploration at Juruena to formulate a strategy to maximize the value for Talon.
Update on the Saber Coal Bed Methane ("CBM") project
Further to the Company's press release of April 24, 2009, Talon is continuing with its due diligence review on the Saber CBM projects in Botswana. The initial agreement entered into between Saber and Tlou Energy Pty Ltd. ("Tlou") on April 24, 2009 will add considerable management capability and experience to the Saber projects, subject to the successful negotiation and execution of definitive agreements with Tlou. It is anticipated that this will enhance the exploration program and will result in an improved assessment of the exploration results and potential of the projects in the coming months. Accordingly, this will provide the necessary confidence for Talon management to determine whether to proceed with the proposed merger with Saber.
About Talon
Talon is a TSX-listed company focused on the acquisition, exploration and advancement of high quality resource projects. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.
Talon has a treasury of approximately CDN$6.5 million and holds 2,450,000 common shares in Beadell Resources Limited (ASX: BDR.AX). Talon has 27,054,222 common shares outstanding.
Forward-Looking Statements
This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Talon believes, expects or anticipates will or may occur in the future are forward-looking statements, including, without limitation, statements regarding Talon's plans and objectives, the potential merger of Talon and Saber (the "Merger"), the continuation of Talon's due diligence review of Saber, and the entry by Saber and Tlou into definitive agreements. These forward-looking statements reflect the current expectations or beliefs of Talon based on information currently available to Talon. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Talon to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Talon. Material factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure of the Tlou exploration program to yield positive results; the failure of Tlou and Saber to successfully negotiate and enter into definitive agreements; the failure of Talon and Saber (together, the "Companies") to reach agreement and to execute a pre-Merger agreement; and subsequently, the failure of the Companies to complete the Merger; changes in government regulations and policies; and other exploration, development and operating risks.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, Talon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Talon believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Information pertaining to Saber has been furnished by Saber. Although Talon does not have any knowledge that would indicate that any such information is untrue or incomplete, Talon assumes no responsibility for the accuracy or completeness of such information.
Contacts
on Talon please visit the Company's website at www.talonmetals.com or contact: Erica Belling
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com
Amazon Mining Holding Plc: Development of Potash From Verdete Rock Endorsed at Minas Gerais State Public Hearing
Mon May 25, 9:54 AM
http://ca.news.finance.yahoo.com/s/25052009/28/link-f-ccnmatthews-amazon-mining-holding-plc-development-potash-verdete-rock.html
TORONTO, ONTARIO--(Marketwire - May 25, 2009) - Amazon Mining Holding Plc (TSX VENTURE: AMZ.V)("Amazon" or the "Company") is pleased to report that verdete slate, a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product, has been endorsed by Brazilian lawmakers, as Minas Gerais State looks to establish prospective local innovative sources of potash and fertilizer products.
The State Parliament of Minas Gerais together with Federal and State government institutions held public hearings on May 18, 2009. Concluding the hearings, government officials declared their intentions to establish development partnerships to support geological, metallurgical and agronomic efficacy work related to verdete slate.
In Brazil, public hearings are convened by representatives of government to discuss important issues of economic and social development. Relevant authorities and specialists are called upon to facilitate discussion, alongside other interested parties who are invited to contribute opinion. The public hearing was convened by Members of Minas Gerais State Parliament Mr. Delio Malheiros (President of the Commission for Public Administration) and Mr. Vanderlei Jangrossi (President of the Commission for Agricultural and Industrial Policy). Fertilizer is of special interest to the state of Minas Gerais where agribusiness contributed approximately $45 Billion to the state GDP in 2008. According to Mr. Antonio Carlos Arantes, member of State Parliament, "Fertilizer costs for farmers in the state have risen more than 500% in the past 14 years, while prices for the goods produced have increased on average less than 25%."
The hearing's conclusions delivered unanimous support for verdete slate, noting its potassium content, relative abundance and strategic location. The main actionable objective is stimulating the development of competitive fertilizer products in terms of effectiveness and price for the agricultural sector.
Brazilian professionals and authorities from private and public institutions attended the hearing including Mr. Sergio Barroso, Secretary of State for Economic Development of Minas Gerais; Mr. Renato Ciminelli, Executive Manager of the Center of Mineral & Metallurgic Excellence of the Secretary of Science, Technology and Higher Education of the State of Minas Gerais (SECTES); Mr. Lucas Carneiro, Director of Energy Resources of the Secretary of Agriculture, Livestock and Supply of Minas Gerais State; Mr. Paulo Sergio Machado Ribeiro, Sub-secretary of Mineral & Metallurgic Development and Energy Policy of the State of Minas Gerais; Mr. Marco Antonio da Fonseca, Regional Superintendent of the Company for Research of Mineral Resources; Mr. Jorge Raggi, Adviser of the Association of Mineral Industry of the State of Minas Gerais (SINDIEXTRA); Mr. Jose Geraldo Barbosa, Head of Plant Science Department of the Federal University of Vicosa; Mr. Marco Tulio Bocati, Manager of the Organization of Cooperatives of the State of Minas Gerais; Mr. Domingos Savio, Member of State Parliament of Minas Gerais; and others.
Mr. Renato Ciminelli, voiced support for government assisted development of verdete slate saying: "Definitely, verdete is a great solution for Brazil in terms of domestic production of potash. I understand that we are fully able to seek and develop technological solutions and complete studies for verdete and the generation of a new fertilizer. I think we have no other option for the State of Minas Gerais, but to embrace this opportunity and join in partnerships to accelerate development." Most notably Mr. Sergio Barroso and Mr. Lucas Carneiro also made comments recommending government involvement in fast tracked development of verdete slate.
The public hearing specifically validated the economic and social importance of Amazon's Cerrado Verde project located in the state of Minas Gerais, and political willingness was expressed for the establishment of partnerships to overcome technical challenges and to accelerate pilot-scale manufacture of ThermoPotash in the vicinity of Amazon's verdete slate occurrences.
On May 4, 2009, Amazon reported that Brazil's Centre for Mineral Technology (CETEM), a government sponsored research and development institute, had agreed to fund metallurgical tests on verdete rock from Amazon's Cerrado Verde potash project.
About Amazon
Amazon Mining, listed on the TSX Venture Exchange, is a mineral exploration company engaged in creating shareholder value via cost effectively advancing its portfolio of projects while diligently assessing additional value-adding opportunities. Amazon is preserving cash and adopting a highly conservative and risk mitigating approach to opportunity assessment and project development.
On behalf of the Board of Directors of Amazon Mining Holding Plc, Cristiano Veloso, President and CEO.
Cautionary Language and Forward Looking Statements
THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.
The potential grades detailed in this release are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the targets being delineated as a mineral resource.
Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Amazon's website ( www.amazonplc.com) and filed on SEDAR ( www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts
Cristiano Veloso
Amazon Mining Holding Plc
President & Chief Executive Officer
+44 (0) 20 8133 7607
+44(0)20 7405 7773 (FAX)
cv@amazonplc.com
Jed Richardson
Amazon Mining Holding Plc
VP Corporate Development
(416) 866-2966
(416) 866-8829 (FAX)
jed@amazonplc.com
www.amazonplc.com
Increased potash output key to avoiding global food crisis
As crop prices are beginning to rise again, both potash miners and global think tanks argue that increased potash production for fertilizers is vital to boost agricultural output worldwide.
Author: Marc Davis
Posted: Thursday , 21 May 2009
VANCOUVER, BC (BNW Business News Wire) -
http://www.mineweb.com/mineweb/view/mineweb/en/page31?oid=83619&sn=Detail
Global fertilizer use must be ramped-up to avert a permanent food crisis and world instability. This is the stark message that was delivered at the BMO Capital Markets 2009 Agriculture, Protein and Fertilizer Conference in New York last week.
Among the keynote speakers who addressed this urgent economic imperative was Bill Doyle, the CEO of Saskatchewan-based Potash Corp. (TSX: POT) - the world's largest potash mining company.
Doyle said that the value to mankind of this potassium-rich mineral cannot be overstated. When mixed with phosphate and nitrogen, potash makes it possible for fertilizers to boost crop yields by as much as 60%, he emphasized.
To avoid a looming food crisis, the world can no longer settle for anything less than optimal crop yields via the balanced application of potash-based fertilizers, Doyle insisted.
"Long term demand for fertilizers, especially potash, must increase if farmers are going to produce enough food for the world's growing population," he said.
However, the recent economic crisis has prompted farmers the world over to significantly curtail their spending on fertilizers, while also scaling back the planting of arable land, Doyle noted, adding that this could have "dramatic consequences" at least in the near-term.
"This drop in acres planted and fertilizers used could create a major problem for the world food supply as the world's grain stocks have been near historically low levels for the past several years," he said.
Furthermore, the under-application of potash-based fertilizers is not merely a reaction to the recession. It has been a pronounced problem for decades in the world's most populous nations such as China, India and Malaysia, Doyle warned. This is where "yields continue to suffer," especially as these major importers continue to procrastinate about the inevitability of having to pay higher prices for new potash inventories.
The inauspicious prospect of a drop in global food production in 2009 - the first annual dip in living memory - is a "recipe for trouble," he said. "It appears very likely that farmers will not be able to keep pace with grain demand in 2009."
Such an unprecedented turn of events will merely kick-start a return to higher food prices, Doyle warned. And last year's global food crisis served notice that the world can ill afford another surge in the prices of food staples, especially in poorer nations where there was widespread political unrest, including food riots.
Yet, even though crop prices have since retreated from 2008's lofty levels due to the crash in commodity prices, they have ominously started to creep higher since the start of 2009. Doyle noted, "You can also see that prices for major crops grown around the world are well above their ten-year averages."
Another speaker at the conference, Patricio Varas, the president of Western Potash Corp (TSX.V: WPX) - one of only three serious exploration and development hopefuls in Canada - agrees with Doyle's concerns.
Varas told BNW Business News Wire that potash-based fertilizer is crucial to realizing meaningful cost containment while boosting crop yields. That is why a widely-expected abatement of the global economic crisis later this year should spur on a replenishment of potash inventories in key markets, Varas added.
In turn, the world must dramatically accelerate fertilizer application to meet the extraordinary challenge of feeding an additional 75-80 million mouths per year, he said. Then there's also the challenge of serving several billion people in emerging economies who are now demanding feed-intensive animal-protein in their diets.
"We view the need to find and develop the potash mines of tomorrow as a call to action, with the aim of helping to prevent a future a global food crunch," Varas said.
In recent weeks, various global government organizations, such as the United Nations, have also sounded the alarm bell by issuing grim warnings about the urgent need to exponentially improve year-on-year crop yields.
In fact, the world faces a permanent food crisis and global instability unless countries act now to feed a surging population by doubling agricultural output, a report drafted for ministers of the Group of Eight nations warned earlier this year.
The report, entitled "The Global Challenge: to Reduce Food Emergency", warns that global food production needs to double by 2050 to feed an additional 79 million-plus mouths each year. The G8 also warns of the food production challenges posed by "pronounced climate changes," leading to water shortages, as well as "higher input costs."
"The issue of price volatility remains a crucial element for the world's food security," the report also says. "There is a need for a fast increase of agricultural production in developing countries."
Although most agricultural commodities prices have fallen by as much as 40-50% since the 2008 price spike that saw them at all-time highs, they are still well above their average yearly levels prior to last year's food crisis. In fact, some staples have jumped in price since the start of the year.
They include wheat and corn prices, which have risen over 15%, and soybean, which is up over 20%. Additionally, domestic prices in many developing countries remain close to last year's records and have risen even further in some African countries.
Even international watchdog organizations such as the London-based think tank, Chatham House, are weighing-in on the pending food shortage. In a recent report, Chatham echoed Bill Doyle's assessment that the recent fall in food prices is only a temporary reprieve and that food prices are set to resume an across-the-board upward trend once the world emerges from the current economic downturn.
Over the medium term, the report states that: "long-term resource scarcity trends, notably climate change, energy security and falling water availability" will put pressure on prices and production, together with "competition for land and higher demand resulting from increasing affluence and a growing population."
Potash to Keep Output Cuts Until China Demand Returns (Update2)
http://www.bloomberg.com/apps/news?pid=20601012&sid=aVJPFK5JBhSo&refer=commodities
By Christopher Donville
May 14 (Bloomberg) -- Potash Corp. of Saskatchewan Inc., the world’s largest producer of its namesake crop nutrient, will continue to curtail output until demand from China increases.
Shipments of the potassium product to Asia and South America have slowed ahead of negotiations on pricing and import volumes for delivery to China this year, the company said last month. The annual talks on pricing between China and global potash producers are expected to conclude by the end of June, Chief Executive Officer Bill Doyle said today.
“We’ll just be patient, and as long as it takes, we’ll keep our mines shut down,” Doyle said at an investor conference in New York. “When they need it, we’ll produce it.”
Potash Corp. and North American competitors Mosaic Co. and Agrium Inc. are among fertilizer producers that have curtailed output after farmers around the world reduced demand for the nutrient as crop prices fell last year from record highs.
Potash Corp., based in Saskatoon, Saskatchewan, rose C$5.50, or 4.6 percent, to C$126.01 at 4:15 p.m. in Toronto Stock Exchange trading. The shares gained 41 percent this year.
To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net.
Last Updated: May 14, 2009 16:43 EDT
Atacama to Commence Potash Drill Program in Brazil
Thu May 14, 9:54 AM
http://ca.news.finance.yahoo.com/s/14052009/28/link-f-ccnmatthews-atacama-commence-potash-drill-program-brazil.html
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2009) - Atacama Minerals Corp. ("Atacama" or "the Company") (TSX VENTURE: AAM.V) is pleased to announce that preparations are underway to commence exploration drilling on its potash project located on the northeastern coast of Brazil near the city of Salvador, Bahia. The Company currently holds exploration permits comprising 1,700 square kilometers covering the highly prospective southern on-shore portion of the Reconcavo Sedimentary Basin.
The potential of the area to host potash deposits has been indicated by historical drilling records revealing the occurrence of potash beds of various meters in thickness directly overlying the halite salt bed located within the evaporitic section of the lower Alianca Formation of upper Jurassic age. The presence of sylvite and sylvinite potash minerals was confirmed within a 9 meter section of drill hole MQ-3 on the Island of Matarandiba in 1972 (see Company's news release dated July 14, 2008). The potash was found in the "Intermediate Interval" of the evaporitic Matarandiba Member of the Alianca Formation at a depth of 1,100 meters.
The Company's initial drill program is designed to define the thickness and grade of the potash beds present within the southern portion of the project area, adjacent to the nearby halite solution mining operations of Dow Chemical. Drillholes will be vertical using conventional core drilling equipment with special measures taken to recover drill core from the potash and salt layers. Drilling will be conducted by Layne do Brasil Sondagens Ltda. who have personnel with world-wide experience in this particular type of drilling.
Drilling will commence upon receipt of permits from government authorities, now being finalized, and conclusion of access agreements with surface land owners, expected in the coming weeks.
The qualified person for the purposes of NI 43-101 guidelines is Juki Laurikko, EuroGeo who has reviewed and approved the contents of this news release.
On behalf of the Board,
Edward F. Posey, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts
Sophia Shane
Atacama Minerals Corp.
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
www.atacama.com
Potash One Significantly Increases Potash Resources at Legacy Solution-Mining Project in Saskatchewan, Canada
Thursday May 14, 10:24 am ET
http://ca.us.biz.yahoo.com/iw/090514/0501348.html
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 14, 2009 -- Potash One Inc. (the "Company" or "Potash One") (Toronto:KCL.TO - News) announced today that it has significantly increased the potash resource estimate on the Company's Legacy Project - a planned solution mine in Saskatchewan, Canada, based on an updated technical report prepared pursuant to NI 43-101.
The report expands and upgrades the estimated resources on the 97,240-acre project to the following new levels:
- 29 million tonnes of Measured potash resource;
- 222 million tonnes of Indicated potash resource; and
- 852 million tonnes of Inferred potash resource.
Paul F. Matysek, President and Chief Executive Officer of Potash One, said that the results are a major advance for the Company.
"The updated Measured and Indicated resource estimate provides a sufficient potash resource foundation for a pre-feasibility study based on a projected production rate of 2.5 million tonnes per year. Subject to financing and a successful feasibility study, the Legacy Project could enter the potash marketplace as early as late 2013 and be the world's first greenfield potash mine since 1987."
The following table (Table 1) summarizes the updated resource estimate on the Legacy Project:
--------------------------------------------------------
Resource Area Thickness KCl Grade Resource
Category Mm3 m % MMT
--------------------------------------------------------
Measured 5.62 37.83 25.8 29
--------------------------------------------------------
Indicated 47.48 34 26.3 222
--------------------------------------------------------
Total 53.1 251
--------------------------------------------------------
--------------------------------------------------------
Inferred 225 33.5 23.8 853
--------------------------------------------------------
------------------------------------------------------------------------
Table 2 - Summary of 2008-2009 Legacy Resource Confirmation Activities
------------------------------------------------------------------------
Resource Confirmation Program Start Date Completion Date
------------------------------------------------------------------------
2D Seismic Survey (Phase I) March 2008 June 2008
------------------------------------------------------------------------
2D Seismic Survey (Phase II) August 2008 October 2008
------------------------------------------------------------------------
2D Seismic Survey (Phase III) October 2008 December 2008
------------------------------------------------------------------------
3D Seismic Survey January 2009 March 2009
------------------------------------------------------------------------
Drill Program September 2008 February 2009
------------------------------------------------------------------------
Now THAT will get KCL some visibility!
Potash One Appoints Robert M. Friedland as Chairman, to Assist in Securing Financing for New Canadian Potash Production Project
11:28 EDT Tuesday, May 12, 2009
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2009) - Potash One Inc. (the "Company" or "Potash One") - Paul Matysek, President and Chief Executive Officer of Potash One Inc. (TSX:KCL), announced today that international financier Robert M. Friedland has agreed to become Chairman of the Board of Potash One. Mr. Friedland will advise the Company on its selection of strategic financing partners to develop Potash One's world-class potash (potassium) fertilizer resources in Saskatchewan, Canada.
In conjunction with Mr. Friedland's appointment as Chairman, Mr. Friedland's Singapore-based venture capital Company, Ivanhoe Capital Pte. Ltd., will work under a non-exclusive contract to introduce Asia-based investors to Potash One. Potash One's portfolio of exploration permits covers a total of 515,000 acres in Saskatchewan's potash-rich basin, northwest of Regina, which presently supplies approximately one-third of the global demand for this essential food-growing nutrient.
Potash One's initial focus is on the completion of a definitive feasibility study prior to arranging financing to construct a world-scale potash mine utilizing in-situ solution-mining technology for the recovery of potash on the Company's Legacy Project. The Legacy Project currently hosts indicated resources of 40.8 Mt and inferred resources of 391.5 Mt of K20 (measurement of potassium content), with an updated resource estimate pending as part of a nearly completed Pre-Feasibility Study.
Mr. Matysek stated: "Potash One's Legacy Project subject to positive feasibility and financing will be one of the world's first new potash mines to be brought into production since 1987. Mr. Friedland has the experience and understanding of international capital markets that will help fast-track Legacy's development as a reliable and competitive supplier. On behalf of the Board, I look forward to working with one of the world's most influential mining financiers and visionaries."
Mr. Friedland said he accepted the opportunity to participate in this major Canadian potash development after a review of the industry and the importance of the Legacy Project to the agriculture sector in Asia.
"Potash, or potassium, truly is the mineral of life," Mr. Friedland said. "Potash One represents the best new opportunity to develop a world-class potash operation using in-situ recovery technology that will produce a vitally important fertilizer ingredient that is indispensible for hundreds of millions of farmers who produce the food for the world's human and animal populations."
"Ivanhoe Capital is privileged to build a bridge for long-term, strategic capital investment between Canada and our friends in Asian sovereign-wealth funds and state-owned enterprises."
Mr. Friedland has been developing business links in Greater China and the Asia Pacific region for the past 25 years. He is Chairman of Ivanhoe Capital Corporation, his family's private company that specializes in venture capital and project financing from bases in Singapore and Beijing. With his leadership, Ivanhoe executives and affiliated benefiting companies have raised several billion dollars on international capital markets since 1993 to support a variety of natural resources, energy and technology companies.
Mr. Friedland is founder and Executive Chairman of Ivanhoe Mines - a Canadian public company whose shares trade on the New York, NASDAQ and TSX exchanges, and co-founder, Executive Chairman, President and Chief Executive Officer of Ivanhoe Energy, an established oil and gas producer that is developing heavy-oil projects in Canada and Ecuador using its advanced, proprietary, HTL heavy-oil upgrading technology. Ivanhoe Energy is listed on NASDAQ and the Toronto Stock Exchange. He also is Co-Chairman of Sunwing Energy, which is Ivanhoe Energy's operating subsidiary in China and Southeast Asia.
The Board of Directors also announces that Glen MacDonald has resigned as director of Potash One effective May 12, 2009. The Company would like to extend its gratitude to Mr. Macdonald for his contributions and commitment to the Company since joining the Company's board in 2003. Further, the Board would like to thank Mr. David Berg for his stewardship as chairman of the Board since 2007 and thank him for continuing on as a director of the Board.
About Potash One Inc.:
Potash One Inc. is a well-funded TSX-listed Canadian resource company engaged in development of advanced potash properties amenable to solution mining. The Company owns 100% of more than 515,000 acres of Potash Subsurface Exploration Permits in Saskatchewan, Canada. This includes the 97,240 acre Legacy Project which has an NI 43-101-compliant Indicated Mineral Resource of 40.8 million tonnes of K2O and an Inferred Mineral Resource of 391.5 million tonnes of K2O. The Legacy Project is adjacent to the largest producing solution potash mine in the world. Solution mining is scalable, with shorter time to production, and has significantly lower capex relative to conventional underground mines.
Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the corporations' periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Statements in this press release other than purely historical information, including statements relating to the companies' future plans and objectives or expected results, constitute forward-looking statements. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the companies' business, including risks inherent in mineral exploration and development. The companies do not assume the obligation to update any forward-looking statement. In particular, no representation is made in this release as to the timing of the business combination, whether the business combination will complete on the terms described herein or at all, the success or value of the combined companies after the business combination. In addition, there are numerous risks and other factors that will influence a development decision, including concluding resource evaluations on mineral properties, mine design limitations, permitting risks and economic factors, all of which may be beyond our control.
FOR FURTHER INFORMATION PLEASE CONTACT:
Potash One Inc.
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
(604) 331-4431
(604) 408-4799 (FAX)
info@potash1.com
www.potash1.com
or
Ivanhoe Capital
Bob Williamson
(604) 688-7166
bob@ivancorp.com
The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.
Courtesy of Potash Investing News:
DEVELOPING WORLD-CLASS POTASH PROJECT IN ETHIOPIA
http://www.potashinvestingnews.com/496-developing-world-class-potash-project-in-ethiopia.html
POTASH SECTOR ANALYSIS
Potash Juniors will be major beneficiaries of a major sector run very, very soon. Here’s two articles from today in support of the theory.
Canaccord Adams Reiterates a 'Buy' on Mosaic Co (MOS); Raises Price Target
May 7, 2009 12:33 PM EDT
Canaccord Adams reiterates a 'Buy' rating on Mosaic Co (NYSE: MOS), raises price target from $55 to $60.
Canaccord analyst says, "Similar to our earnings commentary from the past few weeks, our thesis remains unchanged. We expect Q2/CY2009 to be another weak quarter, followed by increasing buying interest of fertilizers as we enter the summer months. It is possible that July may be a relatively slow month, but we believe that will be followed by improved strength in the market as we head into the fall planting season. Furthermore, we believe CY2010 will be a robust year. We believe the conclusion of the Indian potash contract will take place in June, which should be the catalyst that begins to move potash again into the fall season. We also believe this will lead to expanded multiples in the fertilizer sector over the coming months."
Potash Corp forecasts tight potash supply
* Supply expected to be tight for 5-10 years
* Demand expected to recover in second half 2009
* Says its potash gross margin could reach $25 bln (Adds details, background)
SASKATOON, Saskatchewan, May 7 (Reuters)- Potash Corp. of Saskatchewan Inc (POT.TO) expects the global supply of potash fertilizer to be tight for the next five to 10 years, despite a massive planned increase in its production capacity.
"Fertilizer customers have been slow to return to the table, but they cannot defer purchases indefinitely," President and Chief Executive Bill Doyle told the company's annual meeting.
"Many major markets are showing signs of having destocked their inventories and must rebuild their supplies."
Potash demand, which has been hit by the global recession and falling grain prices, will grow in the second half of 2009 and rise in 2010, Doyle said. As demand grows, Potash Corp, the world's biggest producer, will start to reverse production slowdowns, he said.
The company's reasons for optimism center on a global rebound in the need for more fertilizer to increase food production for a growing population, particularly in China and India, Doyle said.
"We know the current slowdown will pass and that a strong demand surge is likely to follow," he said.
"It's like watching someone pull back on the pocket of a slingshot. When this is unleashed, we expect a significant rebound that will carry us forward."
Potash Corp is spending C$7 billion ($6 billion) on expansion and upgrading projects in the Canadian provinces of Saskatchewan and New Brunswick. They will give the company 18 million tonnes of capacity by the end of 2012, more than double the capacity when it started its expansion program in 2005.
That production could sell at higher prices, which could drive the company's potash gross margin to $25 billion annually, said Doyle, adding he was not forecasting that figure.
Negotiations on new potash contracts with China and India, two major buyers, are expected to conclude by the end of the second quarter, Doyle said.
Late last month the company reported a 46 percent drop in first-quarter profit and lowered its forecasts amid weak demand for crop nutrients.
Fertilizer prices soared in early 2008 on surging demand, tight inventories and record grain prices. But the global credit crunch and the economic downturn weighed on the agricultural sector, and grain and nutrient prices tumbled as farmers deferred applying fertilizer.
($1=$1.17 Canadian) (Reporting by Rod Nickel; editing by Rob Wilson)
MagIndustries Kouilou Potash Project Financing Update
Mon May 11, 8:00 AM
http://ca.news.finance.yahoo.com/s/11052009/28/link-f-ccnmatthews-magindustries-kouilou-potash-project-financing-update.html
TORONTO, ONTARIO--(Marketwire - May 11, 2009) - MagIndustries Corp. (TSX VENTURE: MAA.V) ("MagIndustries" or the "Company") is pleased to announce, together with its financial advisor BNP Paribas, that substantial progress has been achieved with a group of international project finance institutions for debt financing of its Kouilou Potash Project located in the Republic of Congo (the "Project"). BNP Paribas is in discussions with export credit agencies, international development agencies and commercial banks (the "Lenders") for the provision of not less than US$800 million of project debt financing. Following recent round-table discussions, MagIndustries and the Lenders are proceeding with ongoing due diligence and negotiations.
Pre-construction activity has been ongoing on the Project site since October 2008, and following finalization of the debt and equity financing we expect to commence construction of the production facility. The facility is scheduled to start production by the end of 2011 and reach full production by the middle of 2012.
Bill Burton, President and Chief Executive Officer of MagIndustries, commented following the recent meetings with Lenders in Paris: "Mag is pleased with the progress it believes has been made with the project financing, and we greatly appreciate the diligence of the Lenders in working with us in this process."
The Project is among the largest potash greenfield projects under development in the world, with an initial annual design capacity of 600,000 tonnes of potash. Cash operating costs per tonne of potash are expected to be among the lowest in the industry, which will contribute to attractive returns and significant value generation.
About MagIndustries:
MagIndustries is a Canadian company whose common shares are listed on the TSX-Venture Exchange and trades in Canadian currency under the symbol "MAA". The Company has 288,079,962 shares outstanding on an undiluted basis. MagIndustries' resource subsidiaries are operating and developing major industrial projects in the Republic of Congo and the Democratic Republic of Congo. More information on the Company is available at its website, www.magindustries.com.
Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.
Cusip: 55917T 102
Neither TSX-Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX-Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts
Rich Morrow
MagIndustries Corp.
Vice President
(416) 368-7911
Email: rmorrow@magindustries.com
Knut Rodne
MagIndustries Corp.
Director of Communications & Business Development
(416) 368-7911
Email: krodne@magindustries.com
Website: www.magindustries.com
Union Resources bids for Bonaparte
http://www.miningweekly.com/article/union-resources-makes-takeover-offer-for-bonaparte-2009-05-07
By: Mariaan Webb
7th May 2009
JOHANNESBURG (miningweekly.com) - Marine phosphate mining hopeful Bonaparte Diamonds Mines received a second takeover bid this week, when joint-venture (JV) partner Union Resources made an unconditional scrip offer.
Union, which is Bonaparte’s equal JV partner in the Sandpiper/Meob phosphate project offshore Namibia, offered nine Union shares for one Bonaparte share.
In March, exploration company Minemakers lodged a conditional takeover offer of one Minemakers share for every ten Bonapare shares.
“The clear focus of both take over bids is Bonaparte’s Namibian marine phosphate project,” the company said, urging shareholders not to take any action on the offers, while it an expert evaluated the second takeover bid.
Bonaparte said it would appoint an independent expert to prepare a report, which would state whether or not the takeover offer from Union was fair and reasonable to shareholders and superior or not to the Minemakers bid.
Last month, the company recommended that the Minemakers bid be accepted, in absence of a superior proposal.
Minemakers’ bid would close on May 28, while the Union offer would close on June 19.
Bonaparte is fast-tracking the development of the marine phosphate project in Namibia, aiming to establish a strong phosphate business to capitalise on the growing world demand for fertilisers.
The company shifted its full focus to the development of phosphate projects in March, suspending diamond activities in South Africa when gemstone prices started falling, owing to the global financial crisis.
On April 21, Bonaparte reported an increase of 300% in the indicated mineral resource estimate for the Sandpiper/Meob phosphate JV area. The cumulative indicated mineral resource estimate for the three primary tenements of the JV sampling programme currently stood at some 789,5-million tons, comprising 611,1-million tons at 18,1% and 178,4-million tons at 15,3% phosphate.
Rock phosphate prices back in the doldrums ... now trading around US$125/t for 32%
UPDATE 2-Potash Corp sees stepping up production in 2nd half
Thu May 7, 2009 3:14pm EDT
http://www.reuters.com/article/marketsNews/idAFN0738284720090507?rpc=44
(Recasts with lead on production recovery, adds comments on talk of takeover)
* Company may restore full production by end 2009
* Supply expected to be tight for 5-10 years
* Demand expected to recover in second half 2009
* Says its potash gross margin could reach $25 bln
* Takeover by BHP "possible" but not imminent-CEO
By Rod Nickel
SASKATOON, Saskatchewan, May 7 (Reuters)- Potash Corp. of Saskatchewan Inc (POT.TO) expects to start reversing its potash production slowdown in the second half of 2009, with output fully restored by the end of the year.
Ramped-up production will coincide with an expected rise in demand later this year, followed by a surge in 2010, said President and Chief Executive Bill Doyle.
"We think we're going to be bringing our people back to work and then I think we'll be having a really good go in 2010," Doyle told reporters after speaking at the company's annual meeting. "I see a remarkably changed year in 2010. (Production) could easily be fully restored by the end of this year and then giving her the gears in 2010."
Potash Corp., whose shares dropped about 3 percent to C$108.55 on Thursday, curtailed production at all six Canadian mines this year, amounting to a reduction of 3.5 million tonnes of production. With the slowdown reversed, the company expects to return to full production, which could reach a record 12 million tonnes in 2010.
Fertilizer prices soared in early 2008 on surging demand, tight inventories and record grain prices. But the global credit crunch and the economic downturn has weighed on the agricultural sector, and grain and nutrient prices tumbled as farmers deferred applying fertilizer.
Recovery for Potash Corp, which reported a 46 percent drop in first-quarter profit last month, is just ahead in 2010, with the same global conditions of a growing population and rising demand for food in place that produced 2008's strong returns, Doyle said.
"We know the current slowdown will pass and that a strong demand surge is likely to follow," he told shareholders.
"It's like watching someone pull back on the pocket of a slingshot. When this is unleashed, we expect a significant rebound that will carry us forward."
Doyle expects the global supply of potash fertilizer to be tight for the next five to 10 years, despite a massive planned increase in production capacity.
"Fertilizer customers have been slow to return to the table, but they cannot defer purchases indefinitely," Doyle said.
"Many major markets are showing signs of having destocked their inventories and must rebuild their supplies."
The company's reasons for optimism center on a global rebound in the need for more fertilizer to increase food production for a growing population, particularly in China and India, Doyle said.
Potash Corp is spending C$7 billion ($6 billion) on expansion and upgrading projects in the Canadian provinces of Saskatchewan and New Brunswick. They will give the company 18 million tonnes of capacity by the end of 2012, more than double the capacity when it started its expansion program in 2005.
The company's competitors are also expanding, while junior mining companies and Australian mining giant BHP Billiton (BHP.AX) are planning new Canadian mines. Some of those won't go ahead, Doyle predicted. Talk has circulated of Potash Corp being a potential takeover target for BHP, but Doyle said such talk has been around for two years.
"It could be possible. Do we worry about it? Absolutely not. We don't lose any sleep about what somebody else might or might not do... I don't see any imminent threat to us."
Potash Corp.'s increased production could sell at higher prices, which could drive the company's potash gross margin to $25 billion annually, said Doyle, adding he was not forecasting that figure.
Negotiations on new potash contracts with China and India, two major buyers, are expected to conclude by the end of the second quarter, Doyle said.
($1=$1.17 Canadian) (Editing by Frank McGurty)
Intrepid Reports Results for First Quarter 2009
Last update: 5:03 p.m. EDT May 7, 2009
http://www.marketwatch.com/news/story/intrepid-reports-results-first-quarter/story.aspx?guid={AB81712B-76D5-4EEF-B071-90C9C1B87934}&dist=msr_2
DENVER, May 07, 2009 (BUSINESS WIRE) -- Intrepid Potash, Inc. (IPI:26.14, -0.67, -2.5%) , today announced first quarter 2009 results with net income of $24.7 million up from $19.3 million on a comparative pro forma basis from the first quarter of 2008. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2009 increased to $43.6 million, a 20 percent increase on a comparative pro forma basis from $36.2 million in the first quarter of 2008. Earnings for the first quarter of 2009 were $0.33 per diluted share, an increase of 27 percent from the comparable period of 2008.
Highlights for the First Quarter 2009:
-- As of March 31, 2009, we had $102.5 million of cash, no outstanding debt, and $125 million of availability under our revolving credit facility.
-- The average net realized sales price for potash in the first quarter 2009 increased to $727 per short ton ($802 per metric tonne) compared to $295 per short ton ($325 per metric tonne) in the same period of 2008. This was a decrease from the $762 per short ton in the fourth quarter 2008.
-- Adjusted net income for the first quarter of 2009 increased to $25.2 million compared to adjusted pro forma net income of $15.9 million in the same period of 2008. This was an increase from the $24.3 million in the fourth quarter of 2008.
-- Potash sales in the first quarter were 99,000 short tons compared to 213,000 short tons in the first quarter of 2008.
-- Potash production in the quarter decreased to 137,000 short tons compared to 224,000 short tons produced in the first quarter of 2008.
-- Average net realized sales price for langbeinite, which we market under the registered name of Trio(R), increased to $330 per short ton ($364 per metric tonne) in the first quarter of 2009 compared to $123 per short ton ($136 per metric tonne) in the first quarter of 2008. The net realized price for Trio(R) was $323 per short ton in the fourth quarter of 2008.
-- Sales of Trio(R) were 38,000 short tons in the first quarter of 2009 compared to 93,000 short tons in the first quarter of 2008.
-- Langbeinite production in the first quarter decreased to 42,000 short tons compared to 56,000 short tons produced in the first quarter of 2008.
-- Gross margins in the first quarter of 2009 for potash increased to $423 per short ton or 58 percent compared to 51 percent in the three months ended March 31, 2008. Gross margins for Trio(R) increased to $144 per short ton or 44 percent, up from 19 percent in the same period of 2008. These amounts are a decrease from the fourth quarter of 2008 gross margins which were $479 per short ton or 63 percent for potash and $171 per short ton or 53 percent for Trio(R).
-- Capital investments in the first quarter of 2009 totaled $23.8 million.
"Considering the current environment presented us with many challenges, first quarter results were generally in line with our expectations. Through our active management of production volumes and our being selective with the sales prices we would accept, we continued to maximize margins, and we were able to remain quite profitable," said Bob Jornayvaz, Intrepid's CEO. "Despite the current headwinds, we were able to sell more tons sequentially than in the fourth quarter, achieve higher net income than a year ago, realize substantial EBITDA, and maintain the strength of our balance sheet. Looking forward, in the near term, we believe that potash usage will remain below rates needed to replace nutrient removal. On a long-term basis, we continue to look at the 25-year history of annual potash consumption in the United States that has averaged approximately ten million tons. This average consumption has occurred during periods of low agricultural commodity prices, negative farmer margins, uncertain government agricultural policy, droughts, low levels of oil and gas drilling and other negative events, and the volatility of this ten million ton average has been less than ten percent. We believe this historical demand profile will eventually return. As a result, we need to stay focused on the strength of our balance sheet and on investing in our operations to improve reliability and productivity, which will all lead to lower operating costs per ton when the market returns to average consumption levels. It is this focus that we believe will benefit our stockholders in the long-term."
Market Conditions
The comparability of the first quarter 2009 to the first quarter of 2008 at first seems unremarkable, but upon further examination we sold less than half as many tons, at more than twice the price and, although our costs were higher due to the simple fact that our operating costs are largely fixed, we were able to maintain profitability. While we did see a slight increase in sales volumes from the fourth quarter of 2008, the key factors leading to lower potash demand remained during the first quarter of 2009, including overall pressure on commodity prices, volatile input pricing for the farm producer, buyer hesitation to purchase potash while priced above nitrogen and phosphate, and significant uncertainty due to the economy. Furthermore, wet weather in April for many planting regions in the United States has caused a delay in fertilizer applications by several weeks and has further slowed the destocking process at the dealer level.
We expect that the current market trends will persist at least through the second quarter of 2009, and potentially longer. Further, we anticipate that the application rates for potash fertilizers will decline in 2009, relative to 2008, but we also do not expect this decline to be permanent as fertilizer plays a vital role in ensuring that world agricultural production meets the needs of a growing population. We believe that once dealer inventories clear, dealers will be more cautious in re-stocking to normal summer levels in an effort to keep their inventories low. Intrepid remains well positioned to provide just-in-time delivery of product in certain key agricultural markets when demand materializes. Confronted with this difficult environment we are maintaining our focus on balance sheet strength and capturing margin opportunity. We will continue to manage production volumes and our net cash position and make appropriate adjustments as the market develops.
First Quarter Results
Operating income for the first quarter of 2009 was $40.2 million compared to pro forma operating income of $26.5 million in the first quarter 2008. Cash flows from operating activities were $16.5 million for the first quarter of 2009, which compares to $17.1 million for the first quarter of 2008.
Potash
During the first quarter of 2009, Intrepid produced 137,000 short tons of potash and sold 99,000 short tons of potash. This compares to 224,000 short tons produced and 213,000 short tons sold in the first quarter of 2008. Production declined in the first quarter of 2009 relative to the prior year period due primarily to our election to lower production at the East Mine and West Mine by effecting two-week shutdowns at each facility which began in February of 2009 and were completed the second week of March 2009. Additionally, we reduced the number of operating shifts at these facilities from four shifts to three shifts and took other actions to slow production in response to lower market demand.
The 99,000 short tons of potash we sold in the first quarter was at an average FOB net sales price of $727 per short ton as compared to an average FOB net sales price of $295 per short ton during the first quarter of 2008.
The decrease in sales this quarter, as compared to 2008, resulted from slower sales of granular potash as growers deferred potash applications. Additionally, industrial sales have slowed as the North American rig count has continued to decline in response to lower natural gas and oil prices. However, in the feed portion of our business, we have seen sustained demand for our product.
Our potash "cash operating" cost of goods sold ("COGS"), which we define as total cost of goods sold excluding depreciation, depletion and amortization, royalties, and by-product credits, increased to $266 per short ton in the first quarter of 2009 from $136 per short ton in the first quarter of 2008. The cost per ton amount is higher than previous quarters primarily due to fewer tons of production as a result of our lower operating rates in the first quarter of 2009. Additionally, during the first quarter, we determined that due to the previously mentioned production curtailments our production was below normal ranges, which in accordance with FAS 151, required us to recognize a certain portion of our costs as period costs rather than absorbing these costs into inventory. This accounting adjustment resulted in a $1.2 million increase in our COGS in the first quarter of 2009, or approximately $12 per short ton sold in COGS. It also is important to understand that, because production rates remained at low levels in the first quarter of 2009, the product currently being held in inventory has a higher relative per ton cost than our average COGS for 2008. The Company expects it could take several quarters for this relatively higher cost inventory to work through the system assuming sales and production levels increase.
Langbeinite - Trio(R)
During the first quarter, Intrepid produced 42,000 short tons of langbeinite. We market our langbeinite under the registered name of Trio(R). Our langbeinite production was 25 percent lower than the 56,000 short tons produced during the first quarter of 2008. The decrease in langbeinite production was largely driven by our decision to shut down the East Mine for two weeks and then operate with three operating shifts instead of four shifts as part of our inventory management efforts announced in January 2009.
Intrepid sold 38,000 short tons of Trio(R) in the first quarter 2009 at an average FOB or net sales price of $330 per short ton as compared to 93,000 short tons at an average FOB price of $123 per short ton in the prior year's first quarter.
Capital Investment
During the first quarter 2009, Intrepid invested $23.8 million related to the 2009 capital program. The dollars invested in the first quarter of 2009 were used to fund projects already in progress and for sustaining capital. Total capital investment in 2009 is expected to be between $90 and $130 million. Despite the current market conditions, we will continue to invest capital to increase the operating efficiency of our plants with a view towards the long-term recovery of the potash market. The pace of capital investment will be highly dependent on the cash flows generated from the sales of our products and, therefore, the levels of investment may vary significantly from the current range.
The Company routinely posts important information about the Company on its website under the Investor Relations tab. The Company's website address is www.intrepidpotash.com.
Since operating income, pro forma operating income, adjusted net income, pro forma earnings per diluted share and EBITDA are non-GAAP financial measures it is necessary to reference the respective reconciliations in the accompanying non-GAAP reconciliation tables towards the end of this release.
Conference Call Information
The conference call to discuss first quarter 2009 results is scheduled for May 8, 2009 at 9:00 a.m. (Mountain Time). The call participation number is (877) 419-5396. A recording of the conference call will be available two hours after the completion of the call at (800) 642-1687. International participants can dial (706) 902-2295 to take part in the conference call and can access a replay of the call at (706) 645-9291. All of the above calls will require the input of the conference identification number 93312934. The call will also be streamed on the Intrepid Potash, Inc.'s website, www.intrepidpotash.com. An audio recording of the conference call will be available at www.intrepidpotash.com through June 8, 2009.
Certain statements in this press release, and other written or oral statements made by or on behalf of us, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, including statements regarding guidance, are forward-looking statements within the meaning of these laws. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that our expectations will be realized. These forward-looking statements are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control that could cause actual results to differ materially and adversely from such statements. These risks and uncertainties include: changes in the price of potash or langbeinite; operational difficulties at our facilities; changes in demand and/or supply for potash or langbeinite; changes in our reserve estimates; our ability to achieve the initiatives of our business strategy, including but not limited to the development of the HB Mine as a solution mine; changes in the prices of our raw materials, including but not limited to the price of natural gas; fluctuations in the costs of transporting our products to customers; changes in labor costs and availability of labor with mining expertise; the impact of federal, state or local government regulations, including but not limited to environmental and mining regulations; competition in the fertilizer industry; declines in U.S. or world agricultural production; declines in oil and gas drilling; changes in economic conditions; adverse weather events at our facilities; our ability to comply with covenants inherent in our current and future debt obligations to avoid defaulting under those agreements; continued disruption in credit markets; governmental policy changes that may adversely affect our business and the risk factors detailed in our filings with the Securities and Exchange Commission. Please refer to those filings for more information on these risk factors. These forward-looking statements speak only as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as the result of future events, new information or otherwise.
INTREPID POTASH, INC.
SELECTED OPERATIONS DATA (UNAUDITED)
Intrepid Potash, Inc. Intrepid Mining LLC
(Predecessor)
Three Months Three Months
Ended Ended
March 31, 2009 March 31, 2008
Production volume (in 000 short tons)
Potash 137 224
Langbeinite 42 56
Sales volume (in 000 short tons)
Potash 99 213
Trio(R) 38 93
Potash Statistics (per short ton)
Net sales price $ 727 $ 295
COGS (exclusive of items shown separately below) 266 136
Depreciation, depletion and amortization 18 8
Royalties 25 10
By-product credit (16 ) (14 )
Total potash COGS $ 293 $ 140
Warehousing and handling costs 11 6
Average potash gross margin $ 423 $ 149
Trio(R) Statistics (per short ton)
Net sales price $ 330 $ 123
COGS (exclusive of items shown separately below) 143 77
Depreciation, depletion and amortization 15 11
Royalties 17 6
Total Trio(R) COGS $ 175 $ 94
Warehousing and handling costs 11 6
Average Trio(R) gross margin $ 144 $ 23
INTREPID POTASH, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share amount)
Historical Pro Forma
Intrepid Potash, Inc. Intrepid Mining LLC Intrepid Mining LLC
(Predecessor) (Predecessor)
Three Months Three Months Three Months
Ended Ended Ended
March 31, 2009 March 31, 2008 March 31, 2008
Sales $ 88,901 $ 84,401 $ 84,401
Less: Freight costs 4,707 10,172 10,172
Warehousing and handling costs 1,529 1,800 1,800
Cost of goods sold 35,508 38,461 38,887
Gross Margin 47,157 33,968 33,542
Selling and administrative 6,783 4,542 6,882
Accretion of asset retirement obligation 168 156 156
Other (12 ) 14 14
Operating Income 40,218 29,256 26,490
Other Income (Expense)
Interest expense, including realized and unrealized derivative (203 ) (3,085 ) (1,433 )
gains and losses
Interest income 17 23 23
Insurance settlements in excess of property losses (14 ) 6,998 6,998
Other expense (141 ) (137 ) (137 )
Income Before Income Taxes 39,877 33,055 31,941
Income Tax (Expense) Benefit (15,196 ) 4 (12,657 )
Net Income $ 24,681 $ 33,059 $ 19,284
Weighted Average Shares Outstanding:
Basic 74,975,511 74,843,124
Diluted 74,982,580 74,886,308
Earnings Per Share:
Basic $ 0.33 $ 0.26
Diluted $ 0.33 $ 0.26
INTREPID POTASH, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share and per share amounts)
March 31, 2009 December 31, 2008
ASSETS
Cash and cash equivalents $ 102,459 $ 116,573
Accounts receivable:
Trade, net 37,602 15,107
Other receivables 235 385
Refundable income taxes 1,844 9,967
Inventory, net 55,193 49,318
Prepaid expenses and other current assets 3,551 5,804
Current deferred tax asset 448 1,222
Total current assets 201,332 198,376
Property, plant and equipment, net of accumulated depreciation of 157,203 138,790
$29,564 and $26,514, respectively
Mineral properties and development costs, net of accumulated 32,380 30,244
depletion of $6,558 and $6,367, respectively
Long-term parts inventory, net 4,480 3,973
Other assets 7,911 6,053
Non-current deferred tax asset 321,924 327,641
Total Assets $ 725,230 $ 705,077
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable:
Trade $ 13,471 $ 15,516
Related parties 39 26
Accrued liabilities 12,018 14,967
Accrued employee compensation and benefits 4,873 6,478
Other current liabilities 1,902 1,952
Total current liabilities 32,303 38,939
Accrued pension liability 1,264 1,280
Asset retirement obligation 8,306 8,138
Other non-current liabilities 7,077 5,121
Total liabilities 48,950 53,478
Commitments and Contingencies
Common stock, $0.001 par value; 100,000,000 shares authorized; and 75 75
74,985,026 and 74,846,874 shares outstanding at March 31, 2009,
and December 31, 2008, respectively
Additional paid-in capital 554,197 554,743
Accumulated other comprehensive loss (839 ) (1,385 )
Retained earnings 122,847 98,166
Total Stockholders' Equity 676,280 651,599
Total Liabilities and Stockholders' Equity $ 725,230 $ 705,077
INTREPID POTASH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Intrepid Potash, Inc. Intrepid Mining LLC
(Predecessor)
Three Months Three Months
Ended Ended
March 31, 2009 March 31, 2008
Cash Flows from Operating Activities:
Reconciliation of net income to net cash provided by operating
activities:
Net income $ 24,681 $ 33,059
Deferred income taxes 6,730 (4 )
Insurance reimbursements 14 (6,998 )
Items not affecting cash:
Depreciation, depletion, amortization and accretion 3,492 2,790
Stock-based compensation 334 -
(Gain) loss on disposal of assets and other (12 ) 27
Pension expense 42 8
Unrealized derivative (gain) loss (369 ) 1,467
Bond sinking fund unrealized loss 153 210
Changes in operating assets and liabilities:
Trade accounts receivable (22,495 ) (10,638 )
Insurance and other receivables 150 110
Refundable income taxes 8,431 -
Inventory (6,382 ) 835
Prepaid expenses and other assets 187 (2,543 )
Accounts payable, accrued liabilities and accrued employee (689 ) (948 )
compensation and benefits
Other current liabilities 2,275 (251 )
Total cash provided by operating activities 16,542 17,124
Cash Flows from Investing Activities:
Proceeds from sale of assets 16 -
Proceeds from insurance reimbursements (14 ) 6,998
Additions to property, plant, and equipment (26,317 ) (9,776 )
Additions to mineral properties and development costs (3,461 ) (2 )
Additions to bond sinking fund - (14 )
Total cash used in investing activities (29,776 ) (2,794 )
Cash Flows from Financing Activities:
Proceeds from long-term debt - 7,509
Repayments on long-term debt - (7,003 )
Payments of capital leases - (5 )
Restricted stock used for employee tax withholding upon vesting (868 ) -
Members' capital distributions - (15,000 )
Other (12 ) -
Total cash used in financing activities (880 ) (14,499 )
Net Change in Cash and Cash Equivalents (14,114 ) (169 )
Cash and Cash Equivalents, beginning of period 116,573 1,960
Cash and Cash Equivalents, end of period $ 102,459 $ 1,791
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest $ 347 $ 1,641
Income taxes $ 35 $ -
Three Months Three Months
Ended Ended
March 31, 2009 March 31, 2008
Net Income $ 24,681 $ 19,284 (1)
Adjustments
Insurance reimbursements 14 (6,998 )
Unrealized derivative (gain) loss (369 ) 1,467
FAS 151 adjustment 1,186 -
Calculated tax effect (2) (317 ) 2,174
Total adjustments 514 (3,357 )
Adjusted Net Income $ 25,195 $ 15,927
(1.) Net income for the three months ended March 31,
2008, is presented on a pro forma basis as fully described in Part
I, Item 1A to our Form 10-Q. Pro forma net income includes
adjustments to reduce net income for the effect of stock
compensation, interest expense, and income taxes for the period
prior to our IPO.
(2.) Effective rate of 38.1% for 2009 and statutory rate
of 39.3% for 2008.
Three Months Three Months
Ended Ended
March 31, 2009 March 31, 2008
Net Income $ 24,681 $ 19,284 (1)
Income tax expense 15,196 12,657
Interest expense, including derivatives 203 1,433
Depreciation, depletion, amortization and accretion 3,492 2,790
Total adjustments 18,891 16,880
Earnings Before Income Taxes, Interest, Depreciation, Depletion, and $ 43,572 $ 36,164
Amortization
(1.) Net income for the three months ended March 31,
2008, is presented on a pro forma basis as fully described in Part
I, Item 1A to our Form 10-Q. Pro forma net income includes
adjustments to reduce net income for the effect of stock
compensation, interest expense, and income taxes for the period
prior to our IPO.
Western Potash Receives Two Additional Well Licenses, Begins Construction for First Well at Milestone
Wed May 6, 10:17 AM
http://ca.news.finance.yahoo.com/s/06052009/60/western-potash-receives-additional-well-licenses-begins-construction-first-well.html
VANCOUVER, BRITISH COLUMBIA -- Western Potash Corp. (the "Company") (TSX VENTURE: WPX.V)(FRANKFURT: AHE.F) is pleased to announce that it has been issued the remaining two well licenses from the Saskatchewan Ministry of Energy and Resources for drilling on the Milestone property. The Milestone property comprising approx. 500 square km, is located approximately 30 km southeast of Regina, and to the southeast of the Mosaic Company's Belle Plaine KL-106-R mining lease, which hosts one of the largest producing potash solution mines in the world. The property is immediately adjacent to potash permits held by BHP-Billiton, Vale (through a recent sale by Kennecott Canada Exploration) and Potash One.
Seismic data has confirmed the presence of potash prospective salt beds on the eastern portion of the Milestone property, within 15 km of the potash wells drilled by Kennecott during 2008 (subsequently sold to Vale), and covering an area of over 185 square kilometers highlighting a sizeable and attractive new exploration target area.
Government imposed road bans have now been lifted and upgrades to municipal roads necessary for drill site access have commenced. Construction of the first well-site is imminent and the drill is planned to mobilize to the first site on May 14, 2009. The Company plans to drill three wells within the Milestone property using a drill rig supplied by Red Dog Drilling Inc. The purpose of the three well drill program is to define the extent, grade, thickness and type of potash mineralization present on the property. The Company has budgeted approximately $5.4 million CAD for this drill program, and will be well positioned to prepare a NI 43-101 compliant resource calculation on the Milestone property during 2009 should drilling results be positive.
Western Potash Corp. is a mineral exploration company engaged in the evaluation, exploration and development of potash mineral properties in Western Canada. The Company intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.
The in-house qualified persons for the purposes of NI 43-101 guidelines are J. Patricio Varas, P. Geo and Dean Pekeski, P. Geo, both of whom have reviewed and approved the contents of this news release.
For more information on Western Potash Corp.'s projects, please visit the Company's website at: www.westernpotash.com.
ON BEHALF OF THE BOARD OF DIRECTORS
J. Patricio Varas, President and CEO
This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.
SOURCE: Western Potash Corp.
Western Potash Corp. J. Patricio Varas President and CEO (604) 689-9378 (604) 689-8199 (FAX) www.westernpotash.com
Allana Resources Appoints Former Potash Corp Vice President to Advisory Board and Provides Potash Project Update
Mon May 4, 7:30 AM
http://ca.news.finance.yahoo.com/s/04052009/28/link-f-ccnmatthews-allana-resources-appoints-former-potash-corp-vice-president.html
TORONTO, ONTARIO--(Marketwire - May 4, 2009) - Allana Resources Inc. (TSX VENTURE: AAA.V) ("Allana" or the "Company"), is pleased to announce that Mr. Richard J. Lacroix, P. Eng. has been appointed to the Company's Advisory Board. Mr. Lacroix, now retired, is the former Sr. Vice-President, Technical Services for Potash Corporation of Saskatchewan and spent almost 30 years with Potash Corp.
Mr. Lacroix has had a long and prominent career in the potash business with Potash Corp., joining the company in 1977 as Project Manager of the company's Rocanville expansion. Mr. Lacroix rose steadily through management positions in Potash Corp. and became Sr. Vice President of Technical Services in 1987 and headed the team responsible for the corporation's Research and Development work and major capital expansions. In 1991, Mr. Lacroix became Executive Vice President of PCS Sales, responsible for Canadian Potash Sales, Industrial Sales, and Transportation & Distribution.
During this period, Mr. Lacroix also served as a board member for Canpotex and as Chairman for Canpotex Bulk Terminals Ltd. Mr. Lacroix resumed his role as Vice President Technical Services in 2001, overseeing research and development as well as managing major expansions at Rocanville, Lanigan and Allan divisions.
Mr. Lacroix obtained his Bachelor of Science in Electrical Engineering from the University of Saskatchewan.
Farhad Abasov, Allana's President and CEO, stated, "We are very pleased to welcome Richard Lacroix to our technical advisory board. Having worked as a Senior Vice President of the largest potash company in the world, Richard brings critical experience in the areas of potash sales, marketing and logistics as well as potash project development. His contribution to Allana at the development and production stage, as well as during negotiations with potential partners, will be invaluable."
In conjunction with his appointment, Allana has granted Mr. Lacroix 30,000 stock options pursuant to the stock option plan of the Company. The options will be exercisable for $0.15 per option and shall expire on May 4, 2014. Such options shall vest quarterly in eight equal installments over a two year period subject to the applicable regulatory hold period. The grant of options remains subject to receipt of all required regulatory approvals.
ETHIOPIA POTASH PROJECT UPDATE
Allana management has recently finished another round of high-level meetings with government officials in Ethiopia. Ethiopia is embarking on a massive infrastructure initiative including new rail lines and Allana senior management conducted several meetings with key ministers regarding the possibility of building a spur from the main rail corridors to the potash project in Danakil Depression.
In conjunction with these activities, Allana's exploration team is actively planning a 2,000 metre drill program comprised of confirmation drill holes and in-fill holes to increase the confidence level of the inferred mineral resource of 105,200,000 tonnes with a composite grade of 20.8 % KCl (see News Release Sept. 17, 2008).
Peter J. MacLean, Ph.D., P. Geo., Allana's VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.
About Allana Resources Inc.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally and recently optioned a previously explored potash property in Ethiopia with 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (see News Release Sept. 17, 2008). Allana has approximately 61 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".
Forward-Looking Statement
Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect of the appointment on the Company, estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; limitations on insurance coverage and the effect of terminating the investor relations contract. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts
Farhad Abasov
Allana Resources Inc.
416 309 2691
fabasov@allanaresources.com
Peter MacLean
Allana Resources Inc.
416 861 2262
peter@allanaresources.com
Global farming cutbacks in a rotten economy hit fertilizer producers in the pocketbook
Potash sales volumes have dropped 86% in North America and 78% in other countries as farmers have cut back their production.
Author: Dorothy Kosich
Posted: Friday , 24 Apr 2009
RENO, NV -
http://www.mineweb.com/mineweb/view/mineweb/en/page72102?oid=82396&sn=Detail
Potash producers, who were rolling in profits a year ago, are now seeing profits drop by half as farmers cut back on enriching their fields during the current global economic crisis.
The world's biggest potash producer, Saskatchewan's Potash Corp., saw its first-quarter 2009 profits drop 46% to $308.3 million or $1.02 per share, compared to $566 million ($1.74/sh) during the same period a year ago.
The profits were largely achieved on the strength of potash pricing as sales declined for all three nutrients (potash, phosphate and nitrogen) and prices for nitrogen products and solid phosphate fertilizer weakened substantially.
"As the global economic uncertainty that began in the second half of 2008 continued into 2009, most customers for the three primary nutrients appeared to exercise financial caution and drew down inventories while waiting for market stability," PotashCorp noted.
Meanwhile, farmers in the Northern Hemisphere are expected to reduce their use of fertilizer, joining farmers in the Southern Hemisphere who reduced their fertilizer consumption in the fourth-quarter 2008.
"Potash movement was extremely slow in the first quarter as all major offshore markets destocked inventories and many buyers waited for the outcomes of contract negotiations with China and India," PotashCorp said.
The good news is that average realized potash prices in the first quarter of this year were almost $250 per tonne higher than in the same quarter of last year.
In North America and around the world, "farmers and dealers appear to be waiting for potash prices to follow a downward trend similar to phosphate and nitrogen," PotashCorp noted. "We believe these expectations are misguided, as the fundamentals of potash globally are very different from the other nutrients."
PotashCorp President and CEO Bill Doyle told analysts Thursday that the global market for potash has already declined by 12 million tonnes, while the market for phosphate dropped 10 million tonnes. Nitrogen demand declined by 11 million tonnes.
"If potash prices do not remain at levels supportive of capacity reinvestment, " PotashCorp warned, "the necessary production may not be available when the world needs it, leading to the possibility of future prices considerably higher than those seen recently."
The company said it would invest Cdn$7 billion to raise PotashCorp's production capacity to 18 million tonnes per year by 2014. "We expect to fill a significant amount of the world's demand growth over this period."
"With customers nearing the completion of massive destocking efforts in all major markets, we expect a more normal second half of 2009 followed by a rush to refill the pipeline and feed necessary consumption growth in 2010."
The PotashCorp CEO declared "2010 is going to be a big rebound year and we need to be ready for it."
Doyle also told analysts that he anticipates negotiations with China will begin at the end of May and probably be concluded at the end of the second quarter.
Raytec Provides Update on Seismic Program
Thu Apr 23, 9:32 AM
http://ca.news.finance.yahoo.com/s/23042009/60/raytec-provides-update-seismic-program.html
VANCOUVER, BRITISH COLUMBIA -- Raytec Metals Corp. (the "Company") (TSX VENTURE: RAY.V) is pleased to provide an update on its seismic program.
Raytec has concluded its 2-D seismic program on the Company's 100% owned Spar Property totaling 145,000 acres of contiguous ground within the extensive Middle Devonian Prairie Evaporite formation of south-central Saskatchewan. Raytec engaged the services of Kinetix Inc. to conduct the program in advance of proposed drilling.
Upon commencement, the program progressed with minimal delays during the early weeks of November 2008. Due to extreme weather conditions in December the crew was provided with an extended break. Data collection continued after the break and has now been completed. Processing of the data is now underway and results are currently being delivered for interpretation. Full interpretation and evaluation of the high resolution 2-D seismic profiling is scheduled for completion in May.
About Raytec:
Raytec Metals Corp. is a well-financed Canadian exploration company focused on the acquisition of near-term precious metals assets. The Company holds over 180,000 acres of potash permits in Saskatchewan, Canada - the largest producing region for potash in the world. The Company also holds a 15% interest in Sulphur Solutions Inc., an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur fertilizer. The Company is further diversified with iron ore projects in Ontario, and uranium joint venture projects in the Athabasca Basin of Saskatchewan.
On behalf of the Board,
RAYTEC METALS CORP.
Brian Thurston, President and CEO
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements in this news release include statements regarding the Offering (including the anticipated closing date) and future exploration plans and expenditures. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. These statements are based on a number of assumptions, including among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this news release.
Contacts: Raytec Metals Corp. Brian Thurston President and CEO 604 688 6410 604 688 6402 (FAX) www.raytecmetals.com
SOURCE: Raytec Metals Corp.
http://www.raytecmetals.com
Potash Slashes Profit Forecast After Sales Reach ‘Virtual Halt’
By Christopher Donville
April 23 (Bloomberg) -- Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, said 2009 profit will be less than it previously expected after North American sales of the crop nutrient reached “a virtual halt.”
Earnings this year will be $7 to $8 a share, Saskatoon, Saskatchewan-based Potash Corp. said today in a statement. That’s less than the $10 to $12 a share the company forecast in January and trails the $9.33 average estimate of 14 analysts surveyed by Bloomberg.
Chief Executive Officer Bill Doyle temporarily shut down some mines as demand declined, causing the company’s average potash price in North America to more than double to $639.91 a metric ton in the quarter. North American sales volumes of the form of potassium fell 86 percent from a year earlier, and shipments overseas plunged 78 percent.
“In North America, potash fertilizer sales ground to a virtual halt as farmers seemed to expect a price decline similar to those in nitrogen and phosphate fertilizers,” Potash said today in its first-quarter earnings statement.
First-quarter net income fell 46 percent to $308.3 million, or $1.02 a share, from $566 million, or $1.74, a year earlier, Potash said. Excluding a tax benefit, profit was 47 cents a share. The average estimate of 14 analysts surveyed by Bloomberg was for profit excluding items of 82 cents. Sales dropped 51 percent to $922.5 million.
Potash Corp. fell 2.35 euros, or 3.7 percent, to 60.50 euros as of 12:31 p.m. in Frankfurt.
Farmer Demand
Prices for corn, wheat and soybeans all plummeted from record highs last year, reducing growers’ incentive to boost yields.
“The potash companies are cutting production to prop up their prices, and we’re cutting our usage to bring them down,” David Kruse, president of CommStock Investment Inc. in Royal, Iowa, and a grower of corn and soybeans on 640 acres, said before the results were released. “It’s a battle.”
Second-quarter profit will be $1.10 to $1.50 a share, Potash Corp. said today. That trails the average analyst estimate of $2 a share.
The company, which produced about 8.7 million metric tons of potash last year, said in December it aims to reduce output by about 2 million tons because of a “short-term” decline in demand.
Bunge Ltd., the world’s largest oilseed processor, reported a $195 million net loss today, its second straight. The company’s fertilizer unit posted a $262 million loss after a $133 million profit a year earlier.
Global potash producers are negotiating with China on prices and volumes for 2009. The talks, led by Belarusian Potash Co., the world’s largest trader of the commodity, probably will be finished in the current quarter, Potash said today.
Potash, Mosaic Co. and Agrium Inc. negotiate through Canpotex Ltd., their joint international-marketing unit.
To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net.
Focus of board will be Canadian (Ozzy?) listed and/or based grass roots fertilizer plays.
Undeveloped potash and phosphate resources have the potential for huge gains in the future as the need for fertilizer increases.
This board is an offshoot of the informative Grains Oilseeds board. http://www.investorshub.com/boards/board.asp?board_id=4925
Creation of this board is with the intent to keep the focus of the original board on developing agricultural stories rather than junior mining plays and all that entails.
“We can substitute atomic energy for oil and coal, but there is absolutely no substitute for phosphorous.” - Isaac Asimov
"But we don't like buying the big guy. We like buying the little guy that no one else is buying." - Eric Sprott
"If you took conventional fertilizer away from the world, 40 per cent of the grain would disappear" - Agrium CEO Mike Wilson
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