In mid-January, Magna closed the second tranche of a non-brokered private placement (announced October 18, 2013) for total gross proceeds of $80,750.10. The funds from the private placement are being allocated for general working capital as well as preparation of Phase 1 of the drill program. In November, Magna announced a partial closing to the private placement. Total proceeds from both tranches of the financing total $344,635.Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article. Related reading: Four Corners of Potash: Paradox Basin PROJECT UPDATE: Magna Resources Granted Federal Potash Permits from Potash Investing News
The US Bureau of Land Management (BLM) has given Magna Resources (CSE:MNA,OTCQX:MGRZF) the approval it needs to move forward with a drill program aimed at delineating the resource on the company's wholly owned Green River potash project, located in Utah's Paradox Basin. The 14 federal potash prospecting permits granted by the BLM to Magna Resources' subsidiary, American Potash, come into effect on March 1, 2014 and will enable the company to initiate and complete a resource defining drill program at Green River. The company's drill program will consist of four drill holes on federal land combined with four holes to be drilled on state land. The company intends for the program to delineate the Cycle 5 potash horizon that underlines roughly 35,000 acres of the northern portion of the project area, which is expected to contain somewhere between 600 million and 1 billion tonnes of sylvinite with an average grade of between 19- and 29-percent KCl. "The receipt of the physical permits is a momentous milestone that represents a critical juncture in the evolution of the Company," President Mike Sieb said in the company press release. "All the preparatory behind-the-scenes efforts by the Company during the last two years have now set the stage for substantial advancement and growth planned for the next two years. Combined with the apparent strengthening of and re-invigorated attention to the potash sector, the Company is anticipating an exciting period ahead." Magna's Green River project is located in the well-established Paradox Salt Basin in Utah. The company's targeted Cycle 5 sedimentary bed contains the principal potash mineralization that has been mined at Intrepid Potash's (NYSE:IPI) Cane Creek, located just outside of Moab. Though there has yet to be any drilling done on the Green River property, numerous oil and gas wells have been reviewed and used in the determination of the exploration target. According to Magna's website, a majority of the historic wells drilled on the Green River property penetrated potash beds. Data collected on the property indicates that the Cycle 5 layer is a regionally extensive sylvinite bed with a demonstrated continuous thickness as well as improving thickness and grade across the northeast section of the property.