Vancouver, B.C., April 11, 2017: American Potash Corporation (the “Company”) (AMP:CSE) is pleased to announce closing of a final joint venture earn-in option agreement (the Definitive Agreement) with Power Metals (PWM) pursuant to the previously released news release dated March 1, 2017. Mr. Rudy DeJonge, AMP CEO, states “We are pleased to announce our new partnership with Power Metals on this exciting lithium brine project in the Paradox Basin. Power Metals brings strong financial backing and an experienced management team that dovetails well with the strengths of the American Potash team of professionals. Power Metals’ contributions will assist greatly in the exploration for lithium enriched brines on our large, prospective land position in Utah”.
Pursuant to the February 28, 2017 AMP news release and according to the JV agreement with PWM, AMP plan to drill within the next year on their Utah State lithium leases and/or Federal lithium mining claims two wells designed to collect core from potash cycle 5 and test for occurrence, quality (lithium concentrations, thickness of brine aquifer), and hydrologic parameters (flow volumes, potentiometric surface, hydrologic gradient, aquifer host rock permeability, porosity, and transmissivity, etc.) of any brine aquifers encountered in the wells. Both wells will be designed to penetrate the complete Paradox Formation stratigraphic section and the upper portion of the underlying Mississippian Leadville Limestone Formation. There are four documented brine aquifers within the Paradox Formation and one well known brine aquifer at the top of the Leadville Limestone Formation that will be targeted for sample collection and lithium analyses.
Unlike our competitors in the Paradox Basin AMP control rights to potassium as well as lithium and bromine in this area due to juxtaposition of our Federal lithium claims with our BLM potash permit application area. This unique situation will allow AMP to take advantage of all potentially economic elements contained within the rich multi-commodity Paradox Formation brines, in particular lithium, potassium and bromine which are all know to occur in high concentrations in Paradox Basin brines. The multi-commodity nature of the Paradox Formation brines is unique to large marine sedimentary basins due to the original sea water source of the present day dissolved solutes/metals, unlike the South American dry lake bed (“salars”) brines which comprise most of current world-wide lithium production.
American Potash will be operator through completion of the initial two exploration wells.
On behalf of the Board of Directors
“Rudy de Jonge”
Rudy de Jonge, CEO
Neither the OTCQX nor the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, are "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and Canadian securities laws. Forward Looking Statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the Forward Looking Statements.
Key assumptions upon which the Company’s forward-looking statements and information are based include: the price of potash will rise and not fall significantly; the Company’s ability to secure new financing to continue its exploration and development activities; there being no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements; the Company’s ability to obtain regulatory approvals in a timely manner; and the Company’s ability to achieve its growth strategy. These assumptions should be considered carefully by readers. Readers are further cautioned that the foregoing list of assumptions is not exhaustive. Although the Company believes that the assumptions on which the forward-looking statements or information are made are reasonable, based on the information available to the Company on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct.