Potash Ridge signs MOU for development of Blawn Mountain Project
Potash Ridge Corporation, a near-term producer of premium fertilizer in North America, announced that it has entered into a Memorandum of Understanding with SNC-Lavalin Inc. that establishes a long-term relationship between the corporation and SNC for the development of the Blawn Mountain Project in Utah.
Under the terms of the MOU, the parties intend to enter into a contractual agreement whereby SNC will first undertake a study (the "Scaling Study") for the development of Blawn Mountain at a more modest scale than was contemplated in the 2013 Blawn Mountain Project 43-101 Prefeasibility Study Technical Report (the "Prefeasibility Study"). The Prefeasibility Study contemplated an average production rate of 645,000 tons per annum of sulphate of potash ("SOP") over a 40-year mine life. It is anticipated that the Scaling Study will assess a likely initial production rate of around one third of this originally contemplated rate. The Scaling Study is contemplated to take four months to complete.
In parallel with the Scaling Study, the Corporation will oversee the production of a 43-101 compliant technical report, to be completed by others.
Also, under the terms of the MOU, SNC will have the exclusive option to execute the development of Blawn Mountain and will confer and negotiate in good faith the terms of a lump sum, fixed price Engineering, Procurement and Construction ("EPC") contract immediately upon completion of the Scaling Study.