Junior sulfate of potash company Potash Ridge Corp., Toronto, reported on Sept. 20 that it plans to spin-off its Valleyfield project in Quebec as a separate publicly traded company. Valleyfield is one of two Potash Ridge SOP projects, and at a projected 40,000 mt/y is smaller in size to the company’s Blawn Mountain project in Utah.
Potash Ridge said a thorough review of assets and operations determined that the 225,000 mt/y Blawn Mountain SOP project in Utah “better reflects the value of the company’s assets moving forward.” Potash Ridge said Blawn Mountain is in the final stages of completion, with all major environmental and regulatory permits in place. Blawn Mountain plans to produce SOP by processing an alunite material, while the Valleyfield project is slated to use the Mannheim process for SOP production.
Potash Ridge said it is considering a number of options for the spin-off, including an equity spin out in favor of the company’s shareholders, a sale for cash and equity, or a joint venture. “We will be looking to solidify the deal that has the best possible upside and return on investment for all our stakeholders,” said Andrew Squires, Potash Ridge president and CEO. “We are focused on full execution of the above over the next 60-120 days.”
Potash Ridge said Valleyfield’s engineering, regulatory approval, and permitting process have advanced to “a high level of completion,” and the project is now awaiting financing for site acquisition, final permitting, and construction. Potash Ridge said it has seen “a high level of local interest” in Valleyfield, making it better suited as stand-alone company based in and focused on the Quebec market.