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News Breaks | | | | October 22, 2012 | | 05:12 EDT |  | PGRX | Prospect Global Res., Sichuan Chemical sign $2B+ potash and sale agreement
Prospect Global Resources and Sichuan Chemical Industry Holding Group jointly announced a more than $2B agreement, over a 10-year period, under which Sichuan will purchase at least 500,000 metric tons of potash annually, or 25% of the projected output of Prospect Global's American West Potash field in Holbrook, AZ. The conservative deal valuation reflects current market prices of about $475 per metric ton for a total of 5M metric tons. The contract is take-or-pay, backed by a letter of credit. The agreement also provides an option for American West to sell and Sichuan Chemical to purchase an additional amount of potash. It is believed to be the largest-ever purchase and sale contract – in price and volume – for a potash mine under development in the U.S.. It is also believed to be one of the largest potash export contracts in U.S. history. Prospect Global believes that this bankable offtake agreement enhances the attractiveness of the project to lenders. The current timetable calls for the American West site to be in production by late 2015 or early 2016. | |
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News For PGRX From The Last 14 Days Check below for free stories on PGRX the last two weeks. |
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| May 23, 2013 | | 14:45 EDT | | PGRX | Scott Reiman reports 4.3% stake in Prospect Global Resources
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