DENVER, Dec. 13, 2012 /PRNewswire/ -- Prospect Global Resources, Inc. (NASDAQ: PGRX) ("Prospect Global") today announced an update on the third phase of drilling in pursuit of its bankable feasibility study. Prospect Global has begun drilling for a third series of potash development wells in the Holbrook Basin, in Apache County, Arizona. Preliminary results are very consistent with those of 2011 and earlier 2012, indicating quality potash zones with low impurities. Prospect Global refined its disciplined potash coring procedures during its Phase 1 and Phase 2 drilling in 2011 and the first half of 2012, respectively. These wells are designed to increase confidence in "measured and indicated" resources, which can ultimately be converted to "proven and probable" reserves. Wells are drilled in dual completion – that is, the upper and lower parts of the well are encased with steel to ensure hole control but more importantly to eliminate the chance of contamination of the potash cores. The Company has drilled and cored 22 holes. The Company extracted high-quality core samples, for which the assay analyses show a flat-lying potash resource with minimal faulting. These core samples allow the Company to define the geological profile of the potash and outline its lateral continuity. Core samples are critical to optimizing the mine plan with rock mechanics testing and maximizing the processing-plant recovery with metallurgical testing. The ongoing acquisition of data will enhance and validate the Company's operational assumptions as it prepares its definitive feasibility study. PGRX was able to capitalize on existing drill-hole data from historical exploration wells drilled in the 1960s and 1970s. This data was used to calculate the mineral resource and to identify new drill-hole locations. The Phase 1 and Phase 2 drill programs confirmed and enhanced these historical results. The Phase 3 drill program is predominantly infill drill holes focused on converting the Company's "inferred" resource to the higher-confidence classifications of "measured and indicated" resource.
Prospect Global Resources (PGRX) dropped to a one-year low of $1.05 at the close of trading on Friday after the company said it received notice from NASDAQ that it would be suspended from trading on Monday because it had failed to comply with a NASDAQ listing rule that mandates a minimum market value of listed common stock of $35 million. The stock will move to the OTCQB market starting Monday under the same symbol. Prospect Global, which is developing a potash mine in Arizona, announced Friday it had signed an agreement to reduce the cash amount necessary to extinguish its senior secured debt to $15 million from $25 million. The company has filed a registration statement with the Securities and Exchange Commission for a public offering to help fund the payment. Prospect Global has until April 23 to raise the capital to extinguish the debt. Prospect Global has approximately $153.1 million in obligations outstanding to its senior secured lender with a maturity in July 2015, but the $15 million payment will extinguish this amount.