Sichuan Chemical Issues $20 Million Strategic Investment Letter of Intent to
Prospect Global Resources
Sichuan looking to expand relationship with PGRX
DENVER -- September 19, 2013
Sichuan Chemical Industry Holding (Group) Co., Ltd. (“Sichuan”) has issued
Prospect Global Resources Inc. (“Company” or “Prospect”) a Letter of Intent
indicating interest in up to a $20 million strategic investment in Prospect to
further the development of the Company’s Holbrook Project. Prospect and
Sichuan Chemical entered into a potash supply agreement in 2012.
Xiaojun Chen, Chairman of Sichuan Chemical’s Board of Directors, stated,
“Sichuan has been looking for ways to deepen its cooperation with PGRX. We
look forward to working with PGRX in order to bring its Holbrook Basic project
to completion and Sichuan will continue to pursue additional avenues of
cooperation going forward.”
The Company recently released the results of a Pre-Feasibility Study and is
underway on its infill-drilling program. Prospect plans to complete a
Definitive Feasibility Study by the third quarter of 2014.
Terms of the Sichuan investment are to be agreed to and subject to final
approval by the Sichuan Provincial Government and affiliates.
About Prospect Global Resources Inc.
Prospect Global Resources Inc. is a Denver-based company engaged in the
exploration and development of a potash mine located in the Holbrook Basin of
eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital
Market under the ticker symbol PGRX.
Additional details about Prospect Global Resources Inc. can be viewed at the
Company’s website, www.prospectgri.com.
Source: Prospect Global Resources Inc.
About Sichuan Chemical Industry Holding (Group) Co., Ltd.
Sichuan Chemical Industry Holding (Group) Co., Ltd. (SCIHC) is a provincial
state-owned enterprise with assets of RMB 20 billion. It is a large-scale
conglomerate involved in production and marketing of fertilizers and chemical
products, including phosphorite and coal. Additional business lines include
international commodities trade and chemical and technical services. SCIHC has
24,300 full-time employees, more than 5,000 of whom are technical
professionals. Sichuan Chemical has been a leader of China's chemical industry
for more than 50 years.
Source: Sichuan Chemical Industry Holding (Group) Co., Ltd.
Regarding Forward-Looking Statements
With the exception of historical matters, the matters discussed in this press
release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking statements
include statements regarding current and future classification of Prospect
Global’s potash resources, development of its potash resources and potash
mining facility and the Pre-Feasibility Study. Factors that could cause actual
results to differ materially from projections or estimates include, among
others, potash prices, economic and market conditions, and the additional
risks described in Prospect Global's filings with the SEC, including Prospect
Global's Annual Report on Form 10-K for the year ended March 31, 2013. Most of
these factors are beyond Prospect Global's ability to predict or control. The
forward-looking statements are made as of the date hereof and, except as
required under applicable securities legislation, Prospect Global does not
assume any obligation to update any forward-looking statements. Readers are
cautioned not to put undue reliance on forward-looking statements.
Prospect Global Resources Inc.
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