Mr. Mehdi Azodi reports
IC POTASH CORP. RECEIVES FORMAL OFFER TO SELL CAPITAN REEF COMPLEX AQUIFER WATER RIGHTS. REVENUE POTENTIAL OF USD 4M-6M ANNUALLY
IC Potash Corp. and Intercontinental Potash Corp. (USA) (ICPUSA) have received a formal offer from the company H2O of Lea County LLC to purchase ICPUSA’s Capitan reef complex aquifer water.
H2O is committed to building the required infrastructure and providing the equipment costing approximately USD$2M at no cost to ICPUSA. The potential annual revenue for ICPUSA is USD$4M to USD$6M under the proposed offer by H2O.
Mehdi Azodi, President & CEO of IC Potash stated, “We are pleased to receive such a positive proposal for the highly valuable Capitan Reef Complex Aquifer water asset.” H2O will be responsible for identifying, purchasing, and installing the required pumps, treatment facilities, pipelines, electrical power, storage facilities and related infrastructure. The ongoing operations and related monthly cost of electricity, labor, maintenance and process chemicals will be carried out by H2O.
Oil producers require 160,000 to 200,000 barrels of water per well to fracture multiple formations. There are multiple wells completed each month in South East New Mexico. H2O’s expectation is that ICPUSA’s water wells, located about 10 miles northeast of the Ochoa Project, drilled and available for pumping and distribution, will provide water for approximately seven fracturing jobs per month.
The proposal has been submitted to the board of ICPUSA and is valid until July 10, 2017.
About IC Potash Corp.
IC Potash has previously demonstrated a method to make Sulfate of Potash (“SOP”) from the Ochoa polyhalite deposit in Southeast New Mexico in which it has an interest and is currently examining ways to become a low-cost fertilizer producer. The current review of the Ochoa project’s existing feasibility study is being extended to determine a viable positive economic path to the production of direct application polyhalite. The Ochoa project has access to excellent local labor resources, low-cost electricity and natural gas, water, rail lines, and the Port of Galveston, Texas. The Ochoa project’s land holdings consist of nearly 90,000 acres of potassium prospecting permits and mining leases issued by the U.S. Bureau of Land Management and State of New Mexico. For more information, please visit www.icpotash.com.
We seek Safe Harbor.