American Potash Corp. stakes lithium claims on part of their existing Potash Prospecting Permit Application area. Final Potash Master Leasing Plan for AMP’s Green River Potash Project released by the BLM and Arranges Private Placement
Vancouver, B.C., August 23, 2016: American Potash Corp. (the “Company”)(AMP:CSE) has successfully completed location of 157 placer claims totaling 3,140 acres in Grand County, Utah. American Potash also controls the lithium and potassium exploration rights for 9 Utah State lease blocks totaling 5,760 acres. Total acreage of Federal lode lithium mining claims and Utah State lithium leases are currently 8,900 acres. The new lithium claims occur in the north and northeast part of AMP’s existing approximately 27,256 acre Federal Potash Prospecting Permit Application area. The claims cover not only the documented hypersaline brine aquifers hosted in thin clastic sediment beds (“clastic breaks”) that separate thicker evaporite sequences within the Pennsylvanian-age Paradox Formation but also the known potash beds in the Paradox Formation, which includes potash cycle 5, AMP’s Green River Potash Project’s target potash horizon. American Potash has previously reported a potash resource target for potash cycle 5, based on analyses of historic oil and gas down-hole gamma log data by Agipito Associates (NI 43-101 Technical Report, 2012), of 600-million to 1-billion tonnes of potash grading 19% to 29% KCI.
American Potash’s Potash Prospecting Permit Applications on Federal BLM land were put on administrative hold until completion of the long anticipated BLM Master Leasing Plan (MLP). American Potash is pleased to announce that the Moab Master Leasing Plan and Proposed Resource Management Plan Amendments / Final Environmental Impact Statement Final Draft MLP and Environmental Impact Statement was recently published and made public (July, 2016). The AMP exclusive potash prospecting permit application area is incorporated in the Red Wash Potash Leasing area, as newly defined in the recently approved BLM MLP, providing a near-term pathway to exploration program permitting. American Potash intends to re-submit the Exploration Plan and Environmental Assessment previously approved under the old, now replaced, Resource Management Plan upon the final BLM MLP Record of Decision expected in Q4 of 2016. A distinct advantageous outgrowth of the recently passed MLP for AMP is the classification of their potash prospecting permit application area as a designated potash exploration, development and production locale within the MLP, providing a clear path forward for potash exploration, development and potentially production by AMP on their area of interest.
The company is also pleased to announce a non-brokered private placement (the “Private Placement”) for up to 909,090 Units (“Units”) at a price of $0.055 per Unit to raise total proceeds of $50,000. Each Unit will be comprised of one common share of the Issuer (a “Share”) and one half of one common share purchase warrant of the Issuer (each whole warrant, a “Warrant”). Each Warrant will be exercisable into a common share of the Company (a “Warrant Share”) for a period of 24 months at an exercise price of CDN$0.10 during the two years.
Shares issued pursuant to this Private Placement are subject to a four-month hold period from the closing date in accordance with applicable securities laws and, if required the policies of the Exchange.
About American Potash
American Potash Corp. is dedicated to the acquisition and development of potash mineral deposits in the USA and elsewhere.
American Potash is a public company focused on discovery, development and production of potassium and lithium resources in the Paradox Basin, Utah and elsewhere. American Potash currently holds exclusive rights to over 26,000 acres in the Paradox Basin with US federal potash permit applications. American Potash expects transferal of the potash permit applications to potash exploration permits by late 2016 or early 2017. In 2016 American Potash acquired lithium mining claims and Utah State lithium leases totaling approximately 8,900 acres (3,602 hectares).
On behalf of the Board of Directors
“Rudy de Jonge”
Rudy de Jonge, CEO
Neither the OTCQX nor 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 Company’s 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 Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the Forward Looking Statements.
Key assumptions upon which the Company’s forward-looking statements and information are based include: the price of potash will rise and not fall significantly; the Company’s 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 Company’s ability to obtain regulatory approvals in a timely manner; and the Company’s 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.