TORONTO, June 19, 2017 /CNW/ - Potash Ridge Corporation ("Potash Ridge" or the "Company") (TSX: PRK), a near term producer of premium fertilizer in North America, is pleased to announce an offtake agreement with a leading supplier of fertilizer products in North America, for up to 10,000 tonnes per year, which represents approximately 25% of the Company's annual potassium sulphate ("SOP") production.
"This announcement is another major milestone following several key commercial agreements signed in the past year," said Jay Hussey, President of Valleyfield Fertilizer Corp. "The distribution agreement secures a meaningful volume of our production with an established industry partner who possesses significant knowledge and experience of the SOP market in Eastern North America, our primary target market."
The preliminary non-binding, multi-year agreement between the Company's wholly-owned, Quebec-based subsidiary, Valleyfield Fertilizer Corp., and a leading fertilizer distribution partner represents approximately 25% of Valleyfield's initial annual production with a portion of the distribution volume under a take-or-pay formula. Definitive binding terms of the contract are expected to be finalized in the coming weeks.
With this offtake along with the other commercial contracts in place, the Company believes it is well positioned as discussions continue to facilitate project financing and become the first Mannheim SOP producer in North America.
About Potash Ridge
Potash Ridge's strategy is to become a premier producer of SOP in North America. The Corporation owns two SOP projects: the Valleyfield project that plans to produce SOP through the Mannheim Process; and the Blawn Mountain project in Utah that plans to produce SOP by processing an alunite material. 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 include statements related to advancing the Valleyfield Project and may also 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 state of the equity capital markets; the receipt of any required approvals for the private placement; 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 31, 2016 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.
SOURCE Potash Ridge Corporation
For further information: Jay Hussey, President, Valleyfield Fertilizer Corp., Office: 416-362-8640 ext. 102, Mobile: 416.918.6589, [email protected]; Ross Phillips, Chief Operating Officer, Potash Ridge Corp., Office: 416-362-8640 ext. 103, [email protected]