19 September 2013 21:39 [Source: ICIS news]
HOUSTON (ICIS)--Prospect Global Resources has received a commitment of $20m (€14.8m) from its strategic partner Sichuan Chemical to be invested in the company’s flagship Holbrook potash project, the Denver-based fertilizer producer announced on Thursday.
With a projected investment of $825m, the Holbrook operation is anticipated to produce 1.42m tons/year over the initial 26-year lifespan of the mine. Located in eastern Arizona, the project is centered in a favourable mining region that has existing infrastructure for the development.
China-based Sichuan is a state-owned conglomerate involved in production and marketing of fertilizers and chemical products. Sichuan and Prospect previously signed a potash supply agreement in 2012. Terms of the investment are still subject to a final review by governmental regulators, but Sichuan officials were confident it would be approved.
“Sichuan has been looking for ways to deepen its cooperation with Prospect Global Resources. We look forward to working with Prospect Global Resources in order to bring its Holbrook Basic project to completion and Sichuan will continue to pursue additional avenues of cooperation going forward,” said Xiaojun Chen, Sichuan president.
Prospect recently release its pre-feasibility study and is conducting drilling tests with plans to finalize the final feasibility report by Q3 2014.
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