(the Company or American Potash) announces that Sweetwater River Resources, LLC (Sweetwater) has filed a petition to the federal Bureau of Land Management (BLM) for reinstatement of 12 potash prospecting permits (Petition).
The Company has the right to acquire an 100% interest in the 12 prospecting permits through an option agreement with Sweetwater (refer to Company press release dated June 3, 2009). The 12 permits were issued to Sweetwater for a term of two years with an effective date of March 01, 2014 (refer to Company press release dated Feb. 18, 2014), however due to an inadvertent oversight, rental was not paid by the permit anniversary date.
The Mineral Leasing Act provides for the reinstatement of prospecting permits pursuant to 30 U.S.C. § 285, which incorporates by reference the procedures applicable to oil and gas leases (Provisions). The Provisions allow for the reinstatement of the permits, if the failure to pay the rental was inadvertent, if payment is provided for the required amount of back rental owed and subject to BLM approval.
The Petition requests that BLM extend the term of the reinstated prospecting permit for the time necessary to ensure that the Company has the opportunity to enjoy the full two year term of the permit as though the termination had never occurred.
The Company will endeavour to shepherd the petition through the process as expeditiously as possible.
The Company looks forward to the positive conclusion of the reinstatement application process, where after the Company can continue to fulfill its obligations under the terms of the prospecting permits and complete the Exploration Plan.
The Company will provide updates on a timely basis, as it is informed, in relation to the reinstatement of the potash prospecting permits.
The Company, through a wholly owned subsidiary, American Potash LLC, a Nevada limited liability corporation, continues to hold 11 State potash leases totalling 2, 850 hectares (7, 050 acres) separate to the 12 federal potash Prospecting Permits currently under application for reinstatement. In addition, the Company maintains 11 federal Potash Prospecting Permit applications, all of which constitute the Green River Potash Project.
For additional details regarding the Company and the Green River Potash Project please visit the Companys website at www.americanpotashcorp.com.
On behalf of the Board of Directors
“Mike Sieb” Rudy De Jonge
Mike Sieb, President Rudy De Jonge, CEO
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release other than purely historical information, including statements relating to the Companys future plans and objectives or expected results, are “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and Canadian securities laws. Forward Looking Statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Companys business, including risks inherent in resource exploration and development and even though the Provisions define a regulatory procedure and means for reinstatement of the prospecting permits, the Company can provide no guarantee or assurance as to whether the outcome will transpire as petitioned. As a result, actual results may vary materially from those described in the Forward Looking Statements.
Key assumptions upon which the Companys forward-looking statements and information are based include, but not limited to: the price of potash will rise and not fall significantly; the Companys ability to secure new financing to continue its exploration and development activities; there being no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements; the Companys ability to obtain regulatory approvals in a timely manner; and the Companys ability to achieve its growth strategy. These assumptions should be considered carefully by readers. Readers are further cautioned that the foregoing list of assumptions is not exhaustive. Although the Company believes that the assumptions on which the forward-looking statements or information are made are reasonable, based on the information available to the Company on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct.