North Atlantic Potash Inc., the Canadian subsidiary of Acron, today completed the sale of eight of its potash permitted areas to the Yankuang Group Corporation Limited of China for $110 million.
The sale allows North Atlantic Potash to focus its activity on key areas of interest within its remaining potash permits in Saskatchewan. The infusion of cash means the prioritization of advanced exploration and drilling required to delineate resources can now proceed through a systematic and strategic capital expenditure program. This sale relates to North Atlantic Potash’s potash permit holdings located north of Regina (see map on website: permits KP 374, 377, 392, 406, 506, 399, 378, and 507).
“North Atlantic Potash has moved quickly to prioritize and maximize the potential of its potash permits in Saskatchewan,” said Arie Zuckerman, President of North Atlantic Potash. “This is another key step forward on the continuum that moves us towards developing our potash resources in the province. With the resources in place, the promising location of our focus area, and the mining experience that our mother company Acron provides, I am confident in the success of North Atlantic Potash.”
“We’ve said fr om the start that we are committed to potash development. The proceeds of this sale allow us to substantially increase our exploration program in the province,” added David Waugh, CEO of North Atlantic Potash. “Our immediate area of focus remains the Foam Lake area wh ere we have completed an extensive seismic survey and are currently preparing to embark on a drilling campaign this fall.”
North Atlantic Potash Inc.
North Atlantic Potash is focused on developing potash production in Canada. It currently holds 18 exploration permits in the Prairie Evaporite potash deposit in the Saskatchewan. Evaluations are ongoing on their extensive holdings to prioritize exploration activities and other options to maximize their potential.
In September 2011, North Atlantic Potash and Rio Tinto entered into a Joint Venture Agreement under which Rio Tinto for monetary consideration may carry out exploration and examine development opportunities, and building a mine at the nine permits held by North Atlantic Potash. The terms and conditions and the amount of consideration are not disclosed by the parties.