Prospect Global Resources Inc. (“Company” or “Prospect”) reports that in response to the recent release of its Pre-Feasibility Study results, Sichuan Chemical Industry Holding (Group) Co., Ltd. ("Sichuan Chemical") has responded with its endorsement and support. Xiaojun Chen, Chairman of Sichuan Chemical’s Board of Directors, stated, “We have been major supporters of the Holbrook Project from the very early stages of its development. We support its new management team and their incredible work in redesigning the mine and processing plant. The fundamentals of the project remain solid and continue to improve. As such, Sichuan Chemical is excited about its continuing partnership with Prospect Global Resources and we are exploring ways in which we can make the partnership more comprehensive.” The Company continues to develop the strategic partnership with Sichuan Chemical, China’s third largest chemical and fertilizer manufacturer. Damon Barber, Prospect’s President and CEO, said, “We are very pleased that Sichuan Chemical remains excited about its partnership with us and look forward to continuing our work with them to refine the relationship. We appreciate the confidence they have in our potash project and their interest in potential future collaborative efforts to further our development.” Prospect Global Resources Inc. is headquartered in Denver, Colorado. About Prospect Global Resources Inc.Prospect Global Resources Inc. is a Denver-based company engaged in the exploration and development of a potash mine located in the Holbrook Basin of eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital Market under the ticker symbol PGRX.About Sichuan Chemical Industry Holding (Group) Co., Ltd.Sichuan Chemical Industry Holding (Group) Co., Ltd. (SCIHC) is a provincial state-owned enterprise with assets of RMB 20 billion. It is a large-scale conglomerate involved in production and marketing of fertilizers and chemical products, including phosphorite and coal. Additional business lines include international commodities trade and chemical and technical services. SCIHC has 24,300 full-time employees, more than 5,000 of whom are technical professionals. Sichuan Chemical has been a leader of China's chemical industry for more than 50 years.Additional details about Prospect Global Resources Inc. can be viewed at the Company’s website, www.prospectgri.com.Regarding Forward-Looking StatementsWith the exception of historical matters, the matters discussed in this press release include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements regarding current and future classification of Prospect Global’s potash resources, development of its potash resources and potash mining facility and the Pre-Feasibility Study.Factors that could cause actual results to differ materially from projections or estimates include, among others, potash prices, economic and market conditions, and the additional risks described in Prospect Global's filings with the SEC, including Prospect Global's Annual Report on Form 10-K for the year ended March 31, 2013. Most of these factors are beyond Prospect Global's ability to predict or control. The forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, Prospect Global does not assume any obligation to update any forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements.
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.