IC Potash Corp. receives formal offer to sell Capitan Reef Complex Aquifer water rights. Revenue potential of USD 4M-6M Annua...
June 12 2017 - 6:00AM
IC Potash Corp. (TSX:ICP) (OTCQB:ICPTF)
(“
IC Potash” or the “
Company”) is
extremely pleased to announce that ICP and Intercontinental Potash
Corp. (USA) (“ICPUSA”) have received a formal offer from the
company H20 of Lea County (“H20”) to purchase ICPUSA’s Capitan Reef
Complex Aquifer water.
H20 is committed to building the required
infrastructure and providing the equipment costing approximately
USD$2M at no cost to ICPUSA. The potential annual revenue for
ICPUSA is USD$4M to USD$6M under the proposed offer by
H20.
Mehdi Azodi, President & CEO of IC Potash
stated, “We are pleased to receive such a positive proposal for the
highly valuable Capitan Reef Complex Aquifer water asset.”
H20 will be responsible for identifying,
purchasing, and installing the required pumps, treatment
facilities, pipelines, electrical power, storage facilities and
related infrastructure. The ongoing operations and related monthly
cost of electricity, labor, maintenance and process chemicals will
be carried out by H20.
Oil producers require 160,000 to 200,000 barrels
of water per well to fracture multiple formations. There are
multiple wells completed each month in South East New Mexico. H20’s
expectation is that ICPUSA’s water wells, located about 10 miles
northeast of the Ochoa Project, drilled and available for pumping
and distribution, will provide water for approximately seven
fracturing jobs per month.
The proposal has been submitted to the board of
ICPUSA and is valid until July 10, 2017.
About IC Potash Corp.
IC Potash has previously demonstrated a method
to make Sulfate of Potash (“SOP”) from the Ochoa polyhalite deposit
in Southeast New Mexico in which it has an interest and is
currently examining ways to become a low-cost fertilizer producer.
The current review of the Ochoa project’s existing feasibility
study is being extended to determine a viable positive economic
path to the production of direct application polyhalite. The Ochoa
project has access to excellent local labor resources, low-cost
electricity and natural gas, water, rail lines, and the Port of
Galveston, Texas. The Ochoa project’s land holdings consist of
nearly 90,000 acres of potassium prospecting permits and mining
leases issued by the U.S. Bureau of Land Management and State of
New Mexico. For more information, please visit
www.icpotash.com.
Forward-Looking
Statements Certain information set forth in this news
release may contain forward-looking statements that involve
substantial known and unknown risks and uncertainties and other
factors which may cause the actual results, performance or
achievements of IC Potash to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements include
statements that use forward-looking terminology such as “may”,
“will”, “expect”, “anticipate”, “believe”, “continue”, “potential”
or the negative thereof or other variations thereof or comparable
terminology. Such forward-looking statements include, without
limitation, statements regarding trends in the markets for Sulfate
of Potash and polyhalite, the timing for completion of an updated
feasibility study by the Company, the Company’s intention to
investigate the feasibility of polyhalite product production, the
potential value of water resources and other statements that are
not historical facts. These forward-looking statements are subject
to numerous risks and uncertainties, certain of which are beyond
the control of IC Potash, including, but not limited to, changes in
market trends, the completion, results and timing of studies
undertaken by IC Potash, risks associated with mineral exploration
and mining activities, the impact of general economic conditions,
commodity prices, industry conditions, dependence upon regulatory
and environmental approvals, the uncertainty of obtaining
additional financing, and risks associated with turning reserves
into product. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking
statements.
For More Information, Please Contact:
IC Potash Corp.
Mr. Mehdi Azodi, +1-416-779-3268
Chief Executive Officer
MAZODI@ICPOTASH.ORG