IC Potash Corp.
IC Potash Corp. has gone through a significant restructuring plan. The Company has revised its 100%-owned Ochoa polyhalite project in southeastern New Mexico, to consider direct application of polyhalite as a crop nutrient product rather than producing Sulphate of Potash (SOP) through a chemical processing plant. The resulting project has a reduced capital cost, a shorter ramp-up time and improved financial metrics. ICP’s focus is to become a low cost producer of polyhalite.
Ochoa Polyhalite Project, Eddy and Lea Counties, New Mexico, USA
The Ochoa polyhalite project is located in southeastern New Mexico, the commercial hub for US potash production. The region has excellent resource access, including low-cost electricity and natural gas, an approved water source, local trained labor force, rail lines, and the Port of Galveston, Texas.
In 2014 ICP announced an independent Feasibility Study report on producing Sulfate of Potash (SOP), and has received a Record of Decision from the Bureau of Land Management (BLM) that authorizes construction and operation of the Ochoa mine and processing facilities.
Feasibility Study Overview
On November 9, 2016, ICP announced the results of an independent Preliminary Economic Assessment (PEA) for the Ochoa Project, focused on direct polyhalite application, with a Capex of $368 million, 28% IRR and an NPV of $1,197 million.
The significant reduction in Capex and increased IRR is a significant milestone in the development of the Ochoa project as a future polyhalite producer and provides confirmation of the economic viability and robustness of the Project.
Ochoa Project Mineral Resources and Reserves
Based on the resource estimate and resource geometry, approximately 80 million tons of mining is expected, which potentially translates to a 42-year mine life.
“The PEA and our new polyhalite strategy represent the important de-risking phase for the Ochoa project. This body of work and all recent positive developments for the Ochoa project enables ICP to focus on a more aggressive path for project finance and continue our work with various industry groups. We are very excited about the results of the PEA and look forward to taking the Ochoa project to the next stage of project development,” commented Mehdi Azodi, President and CEO.
The Company is progressing the Project in the short-term through a Feasibility Study currently being compiled by Cementation USA that has an expected completion date of the end of February 2017.
Mehdi Azodi, President & Chief Executive Officer, Director
Mr. Azodi has served as the Company's Director of Investor Relations since 2013 and has over 15 years of experience in capital markets. He has also acted in a senior management role to a number of private and TSX/NYSE-listed companies.
Ken Kramer, Chief Financial Officer
Mr. Kramer is financial professional with 31 years of experience in the mineral extraction industry. He worked at Exxon USA, Pacificorp, General Chemical Group Inc., and Intrepid Potash New Mexico Inc. in leadership and operational positions.
Graham Wheelock, Ochoa Project Manager, Operations
Mr. Wheelock is a mining professional with 32 years of experience. He served for eight years at De Beers’ Namaqualand Mine. He was architect and manager of De Beers’ global diamond supply model at the Corporate Headquarters. Mr. Wheelock is the co-founder of Gem Diamonds.
Patrick Okita, Ph.D. (Geology), Ochoa Project Manager, Technology
Dr. Okita is an internationally-renowned geologist and previously held senior technical and management positions with BHP Minerals (now BHP Billiton) and the U.S. Geological Survey.
Tom Cope, Executive Vice President
Mr. Cope has extensive business experience in Texas and southeast New Mexico and works closely with project stakeholders.
Peter Castiglia, Water Resources Consultant
Mr. Castiglia is a senior hydrogeologist with INTERA Incorporated. He has 13 years of experience managing water supply projects.
Rick Chastain, Process Consultant
Mr. Chastain has nearly 40 years of potash experience. He also provides expertise in thermal chemistry and process plant design.
BOARD OF DIRECTORS
John Stubbs, Independent Director
Mehdi Azodi, President & Chief Executive Officer, Director
Ernest Angelo Jr., Independent Director
Knute Lee Jr., Independent Director
Pierre Pettigrew, Independent Director
Please refer to IC Potash's website www.icpotash.com for complete biographies.
On May 30, 2017, IC Potash Corp. announced that Intercontinental Potash Corp., a subsidiary of IC Potash Corp., has filed a civil lawsuit in Denver County District Court, Colorado, against Intercontinental Potash Corp. (USA), a Colorado corporation; Pangaea Two Acquisition Holdings XI LLC; and Pangaea Two Acquisition Holdings XIB LLC. Intercontinental Potash, Pangaea XI and Pangaea XIB are the shareholders of Intercontinental Potash (USA).
On March 28, 2017, IC Potash Corp. announced that it has created a new research and development subsidiary called ICP Organics Corp. that will focus on enhancing yields for cannabis cultivators and increasing the health impact and effects for consumers. ICP Organics will invest up to $1-million into a number of facilities and companies with the intent of generating revenues and profits by the first quarter of 2018. ICP Organics will become a revenue source for ICP by investing in the cannabis sector and organic fertilizers.
On December 2, 2016, IC Potash Corp. announced that it has arranged a non-brokered private placement of up to 16.25 million units of the Company at a price of eight cents per unit for aggregate gross proceeds of up to $1.3-million. The proceeds of the private placement will be used for working capital purposes and securing polyhalite offtake agreements.
On November 21, 2016, IC Potash Corp. announced that it has agreed to accept $2.5-million (U.S.) under the proposed amendment in the strategic investment commitment by Cartesian Capital Group LLC of up to $45-million (U.S.). To date Cartesian has financed $17.5-million (U.S.) into the development of the Ochoa project.