EPK.v got a boost from the closing of a financing with EMR Capital Resources Fund of Australia. The funding of 10.3 million will fund more field work and a feasibility study of their prospective Utah specialty fertilizer mine. The Sulfate of Potash project is especially relevant because of the drought conditions in the West. SOP can provide fertilizer for high value fruits and vegetables. Explanations of the value of SOP versus regular potash are included in their company presentation:
This tax credit by the state of Utah should make the project easier to finance.
TORONTO, ONTARIO--(Marketwired - June 11, 2015) - EPM Mining Ventures Inc. ("EPM" or the "Company") (TSX VENTURE:EPK)(OTCQX:EPKMF) today announced the creation of the "Utah High Cost Infrastructure Development Tax Credit," (the "Infrastructure Tax Credit"), which was passed during the Utah 2015 annual legislative session. The bill could have a direct positive impact on the Company's Sevier Playa Sulphate of Potash ("SOP") Project located in southwestern Utah (the "Project").
"The state of Utah has demonstrated its intention to aggressively retain its title as one of the best states for business," said Lance D'Ambrosio, Chief Executive Officer of EPM. "The Infrastructure Tax Credit was tailor-made for companies like ours which are looking to develop Utah's rich mineral resources and to expand Utah's economic future. The impact of the Infrastructure Tax Credit is very significant because the qualifying utility infrastructure costs under the incentive are projected to be as much as $150 million so the program has the potential to substantially reduce net capital expenditure costs."
Senate Bill 216 ("SB 216") was signed into law by Utah Governor Gary Herbert on March 30, 2015, creating the Infrastructure Tax Credit. The Infrastructure Tax Credit is a post-performance tax credit for all state taxes generated by a new business or expansion of an existing business in the state of Utah and provides for a total tax incentive over a twenty-year period of up to 50% of "qualifying infrastructure" costs incurred by the business. "Qualifying infrastructure" is defined to include, among other things: transmission lines, power substations, gas lines, rail facilities, road improvement projects, water self-supply projects, and water removal system projects.
"This bill was the culmination of several years of work to provide a robust incentive for businesses looking to locate in rural Utah," said Senate Majority Leader, Ralph Okerlund, who sponsored SB 216. "The Sevier Lake Playa potash project was one of several key businesses that were contemplated in the design of the Infrastructure Tax Credit due to their enormous economic potential to the state of Utah."
"The Infrastructure Tax Credit created by SB 216 has the potential to change the economic landscape of rural Utah," said Utah Lieutenant Governor Spencer Cox. "As a state, we have made the conscious decision to invest in Utah's future and SB 216 unequivocally targets rural Utah where developments like the Sevier Playa Project, among others, have historically had high barriers to entry due to the remoteness of their locations and the unavailability of essential infrastructure."
Jason Chang, Managing Director and CEO of EMR Capital said, "From an investor's perspective, the Infrastructure Tax Credit demonstrated two key points to our company. First, the state of Utah is seeking to pursue economic development across the state, and second, from a financial perspective, the Infrastructure Tax Credit reduces Sevier Playa Project risk. These factors played a role in our company's decision to take an equity position in EPM."
The Infrastructure Tax Credit became effective on May 12, 2015 and the Utah Office of Energy Development ("OED") will serve as the hosting government agency to process the application and issuance of tax credits. The Company will be working closely with OED to maximize the timing and financial benefit of the program.
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