PGRX Permit Update: Q&A Regarding its Newly Granted Air Permit
DENVER -- October 3, 2013
Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the
“Company”) previously announced that it has received its Air Quality Control
Permit (“Air Permit”) for the construction and operation of a 2.2 million ton
per annum underground potash mine and surface processing facilities from the
Arizona Department of Environmental Quality (“ADEQ”).
The Company comments:
What is the significance of the Air Permit?
For a mine of this type, this is one of the most difficult permits to obtain
for a project of our magnitude. To our knowledge, we stand alone amongst US
greenfield Potash projects by obtaining this Air Permit.
How does this differentiate PGRX from other Potash miners?
On a global basis, in our opinion, this puts our Holbrook project at the
forefront of greenfield mines to come into production.
How did this process compare to a federal process?
In Arizona, the EPA has delegated its authority to ADEQ with respect to minor
source air permits such as this one. Given the design of the project and a
commitment to reduced emissions, this allowed us to save a significant amount
of time over a typical permitting process.
Where does this position the Company from here?
As is typical for most mining companies, major permitting is always seen as a
major cost and schedule driver. In our view this removes much of the
permitting risk as this permit is often seen to complicate other projects’
What other permits are on the horizon?
The other major permits still necessary are (i) the Aquifer Protection Permit
and (ii) the longterm mineral lease with the Arizona State Land Department.
As a Summary from the prior announcement, the Air Permit is for the emissions
from a 2.2 million ton per annum, two train processing plant and related mine
production as contemplated by the Company’s Preliminary Economic Assessment
released in December 2011. Prospect Global is continuing to evaluate building
only one of the two processing trains and related mine output with
correspondingly reduced emissions as analyzed in the Company’s Pre-Feasibility
The Company is on track to finish its infill drilling program over the next
two weeks and release an updated 43-101 resource report by the end of 2013.
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.
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.
The Rose Group
Elana Weiss, 310-280-3710
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