First Potash Corporation |
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April 1, 2013 Issue |
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The Most Powerful Name In Corporate News and Information |
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The Name Change from Pan American to First Potash Corporation reflects a new Focus on Potash where there is an Increasing Global Need because of its use as Fertilizer in the Agricultural Industry |
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Incorporated in British Columbia, Canada, with headquarters in Tucson,
Arizona, USA. FPC has a portfolio of ten Brine Salar properties (not
hard rock) in the Atacama Region of Chile, that cover a cumulative area
in excess of 22,000 hectares and have the potential to produce
Potassium, Lithium, and other important minerals from surface lakes and
subsurface brines. These Brine Salar properties are among the lowest-cost
property types to extract Potash from in the world. |
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Interview conducted by: Bud Wayne, Editorial Executive, CEOCFO Magazine, To be published – March 2013
CEOCFO: Are you still in Chile or where are your properties today? Mr. Brodkey: They are all the same. Nothing has changed. They are in Atacama Region III, the capital being Copiapo about 750 kilometers north of Santiago, which is the national capital. They are all at relatively high elevations. They are brine salars, meaning that they are dry lakebeds, underneath which exist solutions containing dissolved lithium, potassium, magnesium, calcium and other light metals. We do have one project that has a relatively large surface lake, Laguna Verde, for which we previously obtained a National Instrument 43-101 technical report that showed that there were 512,000 tons of lithium carbonate equivalent and 4.2 million tons of potash (KCl) just in this lake alone, with further exploration potential in the basin. We control the whole project. Our focus now is not for lithium but the good news is we did not have to change anything. We did not have to acquire any new ground or projects. All we really wanted to do was rename ourselves, pivot and let the world know that the potash component of our same properties was now the new emphasis of the company.
CEOCFO:
What are some of the proposed uses of potash and the future outlook?
CEOCFO: Do you have the board members with the knowledge of potash in the industry and where are you in the process? Mr. Brodkey: Yes, we have much technical wisdom inside our company and on our board, although we tend to use third parties and consultants. We hire the right people for the right job rather than have everybody in-house since it is frowned upon to have large overhead. We tend to do things on an outside basis and see about getting technical help. We have a technical advisor whose name is Dr. Tim Lowenstein and he is a professor of geochemistry, head of the department at one time at Binghamton University in New York. His experience has been with brine salars in the Atacama, which is where we are at. He is an incredibly good resource. He has done some analytical work and has given us some good information about where he thinks we should go by designing the types of products he thinks we can make from our salars. It should be noted that each brine salar is different in terms of geochemistry and constituents that make up the actual brines. From one salar you might be able to easily make K2SO4 and from the next one you can only make KCL. It is a matter of chemistry and type of sulfate content you have and a function of many different factors. On the outside we have been hiring very competent and highly recommended consultants. For example, we have been using a group that is based here in Tucson, where our headquarters are located, called Errol Montgomery and Associates. They are expert hydrogeologists. They are very good in terms of designing drilling programs and being able to help you develop a NI 43-101 compliance technical report that will start you out on some of the inferred resource estimates at your salar and work it all the way up to measured and indicated. Then an actual proven and probable reserve such as called for under SEC Guide 7 standards. They have designed some initial test programs for us on some of our lead projects. Our best salar today, where they have designed a program, is called the Salar de Pedernales, which is in the Atacama Region III. It is the second largest salar in Chile at about 450 square kilometers. We have water rights over almost half of the salar and 5,100 hectares of mineral rights. We are very keen on carrying out our program at this salar. . At the end of January, we announced a joint venture with an entity called Minex Ventures VII, which is one in the series of limited liability companies set up here in the US and run out of the state of Colorado. Minex entities have placed money into various mining projects around the world and many in South America. Minex VII has agreed to a joint venture with us at Pedernales to carry us through what would be called the preliminary feasibility study or preliminary economic analysis stage. They have agreed to spend over the next two years $2.5 million and take the project to that point at which we should have a measured and indicated resource at the Pedernales. We should have real economics that gives you a sense of what a project can look like. We should have decent projected numbers on our operating costs per tonne of KCL equivalent. We should have good numbers on the measured and indicated reserve and how many tonnes of potash equivalent exist within our project. These are all things that come out of the drilling and exploration programs that Montgomery and Associates has designed and we will pursue.
CEOCFO: Does First Potash have adequate funding? Mr. Brodkey: We have plans to access the capital markets for money because there is overhead in the company that we try to cover as well as we can. We are in the middle of pursuing a capital raise and recently announced we are seeking to raise about $370 thousand via a temporary relief program at the Toronto Venture Stock Exchange.
CEOCFO: Why should the business and investment community pay attention to First Potash?
Mr. Brodkey:
This company is viable. It is focusing on the commodity of potash. We have a
very bright future. We are in a great place to produce potash, which is a
jurisdiction that is very mining oriented and positive in terms of the
regulatory environment and fiscal environment as well as the ability to
repatriate capital. All of the things you would like to see. The ability to
finance a project in Chile is equivalent in terms of political risk to the
ability to finance a project in North America. We have a portfolio of ten
projects. We have the opportunity to bring more partners in to do more joint
ventures and put this company back on track. We are trading at a small share
price now but that price no way reflects the value of the company and my job
is to demonstrate in the market that there is huge value in this company. If
I were an investor, I would be following this company and waiting to see
what is going to happen in the future. |
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“Pan American would rebrand as a potash company and keep the same properties, locations and same everything-- just pivot and emphasize the potash component as our primary focus of the company and that is exactly what occurred along with the name change in late 2012.”- Andrew A. Brodkey |
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