Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the “Company”) previously announced that it has received its Air Quality Control Permit (“Air Permit”) for the construction and operation of a 2.2 million ton per annum underground potash mine and surface processing facilities from the Arizona Department of Environmental Quality (“ADEQ”). The Company comments: What is the significance of the Air Permit? For a mine of this type, this is one of the most difficult permits to obtain for a project of our magnitude. To our knowledge, we stand alone amongst US greenfield Potash projects by obtaining this Air Permit. How does this differentiate PGRX from other Potash miners? On a global basis, in our opinion, this puts our Holbrook project at the forefront of greenfield mines to come into production. How did this process compare to a federal process? In Arizona, the EPA has delegated its authority to ADEQ with respect to minor source air permits such as this one. Given the design of the project and a commitment to reduced emissions, this allowed us to save a significant amount of time over a typical permitting process. Where does this position the Company from here? As is typical for most mining companies, major permitting is always seen as a major cost and schedule driver. In our view this removes much of the permitting risk as this permit is often seen to complicate other projects’ developments. What other permits are on the horizon? The other major permits still necessary are (i) the Aquifer Protection Permit and (ii) the longterm mineral lease with the Arizona State Land Department. As a Summary from the prior announcement, the Air Permit is for the emissions from a 2.2 million ton per annum, two train processing plant and related mine production as contemplated by the Company’s Preliminary Economic Assessment released in December 2011. Prospect Global is continuing to evaluate building only one of the two processing trains and related mine output with correspondingly reduced emissions as analyzed in the Company’s Pre-Feasibility Study.
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.