TORONTO, Sept. 10, 2013 /CNW/ - Stonegate Agricom Ltd. (the "Company") (TSX: ST) is pleased to provide an update on permitting activities at its Paris Hills Phosphate Project in Idaho.
"Stonegate continues to achieve important milestones in the permitting process at Paris Hills and the Company continues to expect to obtain all state permits and approvals required for its planned underground phosphate mine by the fourth quarter of 2014," said Mark Ashcroft, President and Chief Executive Officer.
"As a result of the recent $11.5 million equity financing, the Company expects to have sufficient funds to complete its permitting work over the next 15 months and is currently examining the potential for equipment financing to comprise as much as half of the estimated $121 million construction cost to bring the mine into commercial production after permitting is completed."
An important aspect of the permitting work is obtaining approvals for the planned pumping of groundwater prior to underground mining and injecting it in a different location. The Company recently obtained a drilling permit for an aquifer pump test well that will provide technical data for dewatering and approval for the point-of-compliance locations for the groundwater monitoring required by state regulatory agencies in advance of and during mining operations.
The Company is currently focused on several permitting activities including the required groundwater sampling and the drilling of the aquifer pump test well on the property. Drilling of the aquifer test well and the pumping tests are expected to be completed by the end of 2013.
The Company over the past year has drilled eight monitoring wells - six in the mine area in 2012 and two in the injection field in 2013 - for the ongoing groundwater sampling and data collection required by state regulatory agencies. This will supplement information obtained from monitoring equipment installed in eight exploration wells in 2010 and 2011.
On December 10, 2012, Stonegate announced it had completed a Feasibility Study for an underground mine in the Lower Phosphate Zone at Paris Hills, producing 904,000 tonnes annually of saleable phosphate rock concentrate over a 19-year mine life.
Additional information is available in a Technical Report entitled "Amended and Restated NI 43-101 Technical Report Paris Hills Phosphate Project Bloomington, Idaho, USA" effectively dated January 18, 2013 and amended and restated as of July 8, 2013. The report is available on the Stonegate website at www.stonegateagricom.com and at www.sedar.com.
The contents of this news release have been reviewed and approved by Daniel Thompson, P.E., Manager, Technical Services, Paris Hills Agricom Inc., who is a qualified person as defined in National Instrument 43-101.
About Stonegate Agricom Ltd.
Stonegate Agricom, which is actively engaged in acquiring and developing agricultural nutrient projects, is currently focused on the development of the potentially world-class, long-life Paris Hills Phosphate Project located in Idaho. The Company is confident that the deposit has sufficient size and grade to become a strategic, cost-effective source of phosphate supply for major fertilizer producers. More information is available at www.stonegateagricom.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law. Generally, forward-looking statements and 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", "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". All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-looking statements and forward-looking information 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 and forward-looking information, including but not limited to: risks relating to assumptions used in preparation of the Feasibility Study and Pre-Feasibility Study on the Lower Phosphate Zone of the Paris Hills Phosphate Project including government regulation, phosphate prices, labour costs and capital costs, and project risks including project location, permitting requirements, project delays, ground control and dilution and water management; the general risks associated with the speculative nature of the Company's business, commodity prices, current global financial conditions, uncertainty of additional capital, price volatility, the Paris Hills Phosphate Project being a development stage project, limited operating history, no history of earnings, government regulation in the mining industry, environmental risks and hazards, impending climate change legislation, required approvals and permits, foreign subsidiaries, risks relating to the retention of the Paris Hills Phosphate Project, expiration of leases and permits for the Paris Hills Phosphate Project, title to mineral properties, obtaining surface rights, community relations and project support, water rights, exploration, development and operating risks, uncertainty in the estimation of mineral reserves and resources, uncertainty of inferred mineral resources, mineral exploration, risks associated with having a controlling shareholder, arbitrary offering price, dilution to the common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends as well as those factors discussed in the section entitled "Risk Factors" in the Company's most recently filed annual information form available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and 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 information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The forward-looking statements and forward-looking information contained in this press release are included for the purpose of providing investors with information to assist them in understanding the Company's expected financial and operational performance and may not be appropriate for other purposes. Stonegate does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.
SOURCE: Stonegate Agricom Ltd
For further information:
Vice President, Investor Relations
Stonegate Agricom Ltd.