Prospect Global Resources Inc (NASDAQ:PGRX) receives investment from Sichuan Chemical
On Thursday, Prospect Global Resources Inc (NASDAQ:PGRX) announced that Sichuan Chemical Industry Holding Co, its Chinese off-take partner had issued it with a letter-of-intent to invest approximately $20M to help in the Holbrook project development. These 2 companies had forged a potash-supply deal in 2012.
In a statement, Xiaojun Chen, the President of Sichuan Chemical said that their company has been seeking ways of expanding its association with Prospect. He added that they look forward to working with Prospect Global Resources Inc (NASDAQ:PGRX) to see the Holbrook project reach completion. Going forward, Sichuan will pursue some additional paths of cooperation.
The Sichuan investment terms still have to be reviewed and agreed to by Sichuan affiliates and will be dependent on provincial government approval. Very recently, Prospect Global Resources Inc (NASDAQ:PGRX) has released a PFS or prefeasibility study for the Holbrook Potash Project. It had assured a potential net present-value of $1.4B and 27% post tax, internal rate of return.
The prefeasibility study projected that the $825M project would produce approximately 1.42M tons/year at a cost of $115 per ton in the first 26-year phase of mine-life. This particular project has an established infrastructure and is also situated in a very favorable mining jurisdiction.
In Thursday’s trading, Prospect Global Resources Inc (NASDAQ:PGRX) stock rose by 29.92%. The opening price of the shares was $5.06 which climbed to an intraday high of $5.60 and dropped to close at $4.82. Approximately 1.58 million shares exchanged hands in Thursday’s trading. The average volume of shares traded over 30 days was $0.262 million. The company has a market cap of $11.10 million.
Prospect Global Resources Inc (NASDAQ:PGRX) was previously Triangle Castings, Inc. It is an exploration stage company involved in exploring and mining various natural resources. The Holbrook project in Arizona is one of its major projects