Message from Yahoo board regarding just filed sec report. The entire filing can, and should, be accessed from the Prospect website, in the investor information (sec) area:
"I have read it and I urge everybody to read it. Most of what is discussed has been discussed here. If anybody who reads it thinks things are not grave for Prospect, there is not much more that can be said. One new thing I did learn is:
"Our agreement with Sichuan Chemical for its purchase of potash over a 10 year period may be terminated if the Holbrook Project has not achieved production by December 31, 2015. We will not achieve production by that date, and there can be no assurance that Sichuan Chemical will extend the December 31, 2015 deadline or that we will be able to commence production at all. In the event that Sichuan Chemical terminates its agreement with us, there is no guarantee that we will be able to enter into a similar agreement with another entity to purchase our potash and such an event could have a material adverse effect on our results of operations and financial condition."
In other words, since Prospect will not commence production by 2015, the off take agreement with Sichuan will not be binding. Sichuan could safely make another off take agreement now, knowing that it will not be bound by the agreement with Prospect. In sum, for all intents and purposes Prospect does not really have an off take deal."
