TORONTO, ONTARIO -- (Marketwired) -- 05/10/13 -- Potash Ridge Corporation ("Potash Ridge" or the "Corporation") (TSX: PRK)(OTCQX: POTRF) today released its first quarter results and provided an update on its flagship 100%-owned Blawn Mountain Project ("The Project").
Q1-2013 Financial Results
-- The Corporation reported a net loss for the first quarter of 2013 of $1.0 million ($0.01 per share) compared with a net loss of $0.8 million ($0.01 per share) for the first quarter of 2012.-- A total of $3.6 million was incurred on project activities during the first quarter compared with $2.5 million on project activities for the first quarter of 2012.-- The Corporation closed the first quarter of 2013 with cash and short- term investments of $18.6 million.
First quarter unaudited Financial Statements and Management's Discussion & Analysis are available at www.sedar.com.
The various aspects of developing the Project remain on track.
-- Completion of the prefeasibility study is still anticipated for the end of the second quarter 2013.-- Pilot plant scale testing is planned to start by mid-May. The start-up was delayed slightly to allow for completion of some metallurgical test work, although this delay is not expected to impact completion of the metallurgical testing, scheduled for the end of 2013.-- A number of permitting milestones are expected throughout 2013, the most significant of which will be the filing of the large mining permit application, anticipated by the end of 2013.
Subsequent to the quarter end, the Corporation received confirmation from State of Utah School and Institutional Trust Land Administration ("SITLA") that it has been granted the unconditional right to convert its Exploration Lease on the Project into a Mining Lease. The Corporation has until March 31, 2014 to exercise its option, at which time it is required to pay SITLA US$1,020,000.
Also, on April 29, Potash Ridge commenced trading on the OTCQX International. This is a segment of the OTCQX marketplace reserved for high-quality non-U.S. companies listed on a qualified foreign stock exchange. The listing will provide U.S investors quick access to the stock and all shareholders will benefit from the Corporation's exposure to a larger base of investors.
The Corporation plans to work towards completion of the prefeasibility study, metallurgical and pilot plant scale test work and filing of the large mining permit. Absent raising additional capital, the Corporation expects that it will have sufficient cash to continue operations through to the end of 2014. In the event sufficient capital is raised subsequent to filing of the prefeasibility study, the Corporation will immediately commence work on the bankable feasibility study.
About Potash Ridge
Potash Ridge is a Canadian based exploration and development company with a unique opportunity to develop a long-term mining project for the production of SOP and bauxite-type material.
The Company's Blawn Mountain Project consists of four areas of surface mineable alunite mineralization in the State of Utah. Alunite is a sulfate mineral ore rich in both SOP and alumina.
Located in a mining friendly jurisdiction with established infrastructure nearby, the project covers approximately 11,550 acres of state-owned land and has a known permitting process. Extensive development was completed in the 1970s including a mine plan, feasibility study and 3-year pilot plant operation.
Potash Ridge has a highly qualified and proven management team in place with significant financial, project management and operational experience and the ability to take projects into production.
This press release contains forward-looking statements, which reflect the Corporation's expectations regarding future growth, results of operations, performance and business prospects. These forward-looking statements may include statements that are predictive in nature, or that depend upon or refer to future events or conditions, and can generally be identified by words such as "may", "will", "expects", "anticipates", "intends", "plans", "believes", "estimates", "guidance" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts but instead represent the Corporation's expectations, estimates and projections regarding future events. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the future financial or operating performance of the Corporation and its subsidiaries and its mineral projects; the anticipated results of exploration activities; the estimation of mineral resources; the realization of mineral resource estimates; capital, development, operating and exploration expenditures; costs and timing of the development of the Corporation's mineral projects; timing of future exploration; requirements for additional capital; climate conditions; government regulation of mining operations; anticipated results of economic and technical studies; environmental matters; receipt of the necessary permits, approvals and licenses in connection with exploration and development activities; appropriation of the necessary water rights and water sources; changes in commodity prices; recruiting and retaining key employees; construction delays; litigation; competition in the mining industry; reclamation expenses; reliability of historical exploration work; reliance on historical information acquired by the Corporation; optimization of technology to be employed by the Corporation; title disputes or claims and other similar matters.
If any of the assumptions or estimates made by management prove to be incorrect, actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such assumptions include, but are not limited to, the following: that general business, economic, competitive, political and social uncertainties remain favorable; that agriculture fertilizers are expected to be a major driver in increasing yields to address demand for premium produce, such as fruits and vegetables, as well as diversified protein rich diets necessitating grains and other animal feed; that actual results of exploration activities justify further studies and development of the Corporation's mineral projects; that the future prices of minerals remain at levels that justify the exploration and future development and operation of the Corporation's mineral projects; that there is no failure of plant, equipment or processes to operate as anticipated; that accidents, labour disputes and other risks of the mining industry do not occur; that there are no unanticipated delays in obtaining governmental approvals or financing or in the completion of future studies, development or construction activities; that the actual costs of exploration and studies remain within budgeted amounts; that regulatory and legal requirements required for exploration or development activities do not change in any adverse manner; that input cost assumptions do not change in any adverse manner, as well as those factors discussed in the section entitled "Risk Factors" in the Corporation's Annual Information Form (AIF) for the year-ended December 2012 found on sedar.com. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Potash Ridge Corporation
Manager of Investor Relations
416.362.8640 ext. 101