Vancouver, B.C., May 8th, 2023. American Potash Corp. KCL-CSE ("American Potash" or the "Company"), announces that it has terminated its option agreement (the "Option Agreement") with LiK Resources LLC, a private Houston-based exploration company ("LiK"), on its Green River Potash and Lithium Project, located in the Paradox Basin, Utah (the "Project").
The Option Agreement, as announced in the Company’s April 17th news release, stipulated that LiK must make a cash payment to the Company of $3 million (USD) on or before April 28th, 2023. After granting a grace period and with no certainty that these funds would be forthcoming, the Company has terminated the Option Agreement, and is now assessing alternatives to provide funding for further development of this promising Project.
About the Green River Potash and Lithium Project
A NI 43-101 Technical Report by Agapito Associates Inc. states that the Green River Potash and Lithium Project hosts an Exploration Target estimated to contain 600 million to 1 billion tons of sylvinite grading between 19% to 29% KCL*.
This target was modelled utilizing gamma-log data from 33 historical oil and gas wells within and near the project area, and based on a specific stratigraphic horizon know as Cycle 5. This is one of the same horizons that Intrepid Potash Inc. (NYSE-IPI), America’s largest potash company, produces from at their nearby Moab solution mine, providing strong evidence of stratigraphic continuity within this part of the Paradox Basin.
The Company holds a 100% interest in eleven State of Utah (SITLA) mineral and minerals salt leases covering over 7,000 acres, 128 Federal lithium brine placer claims covering 2,650 acres, and is in the final stages of the application process for 11 Federal (BLM) Potash Exploration permits comprised of approximately 25,000 acres.
Significantly, three of the State leases and a large area covered by the Federal (BLM) Potash Permit applications, lie within or border, an area designated for future potash and brine and processing, including energy efficient solar evaporation ponds.
Located only 20 miles northwest of Moab, Utah, the Project has significant logistical advantages including close proximity to major rail hubs, airport, roads, water, towns and labour markets.
The U.S. imports more than 90% of its annual potash requirements, and domestic producers receive a higher sales price due to proximity to market; as of March 31st, 2023, the muriate of potash price was quoted at $453 USD per tonne (fob Vancouver) - Intrepid Potash, America’s largest potash producer, reported receiving an average realized price for potash of $713 USD per ton in 2022**.
Kent Ausburn, PhD, PG, a qualified person within the meaning of NI-43-101 and a director of the Company has reviewed and approved for the technical details of this release.
On behalf of the Board of Directors
Jonathan George, President & CEO
Neither the OTCQX nor the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
*Agapito Associates Inc. Technical report (October 2012) quantifies the Green River Potash Project’s potash exploration potential in the form of a NI 43-101 Exploration Target. The Exploration Target estimate was prepared in accordance with the National Instrument 43-101 –Standards of Disclosure for Mineral Projects ("NI 43-101"). It should be noted that Exploration Targets are conceptual in nature and there has been insufficient exploration to define them as Mineral Resources, and, while reasonable potential may exist, it is uncertain whether further exploration will result in the determination of a Mineral Resource under NI 43-101. The Exploration Target stated in the Agapito Report is not being reported as part of any Mineral Resource or Mineral Reserve.
**Intrepid Potash Inc. Press Release March 6th ,2023
Forward Looking Information
This press release contains forward-looking information (within the meaning of applicable Canadian securities legislation) that involves various risks and uncertainties regarding future events. Such forward-looking information includes statements based on current expectations involving a number of risks and uncertainties and such forward-looking statements are not guarantees of future performance of the Company, and include, without limitation, statements relating to plans for future exploration and the magnitude and quality of the mineralization at the Green River Potash and Lithium Project. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information in this news release, including without limitation, the following risks and uncertainties;;(i) risks inherent in the mining industry; (ii) regulatory and environmental risks; (iii) results of exploration activities and development of mineral properties; (iv) risks relating to the estimation of mineral resources; (v) stock market volatility and capital market fluctuations; and (vi) general market and industry conditions. Actual results and future events could differ materially from those anticipated in such information. This forward-looking information is based on estimates and opinions of management on the date hereof and is expressly qualified by this notice. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada at www.sedar.com. The Company assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by applicable law.