Total Assets: $1.12 Million
Total Liabilities: $64K
Current Plan – Management is in talks with numerous parties in order to create a joint venture partnership for its Potash/Lithium assets in Utah. For more information, contact: firstname.lastname@example.org or 604-803-5838
In December 2022, the Company entered into promissory note agreements for gross proceeds of $120,000. The promissory notes will mature on June 30, 2023, and bear interest at a simple rate of 12% per annum. At the election of the holder, the promissory notes and accrued interest will be paid in cash or in common shares of the Company, or a combination of cash and common shares. The Company paid cash finders’ fees of $4,000. In December 2022, the Company entered into a promissory note agreement for $40,000 with Jag Holdings Ltd., a private company controlled by John A. Greig. Please refer to 13 above for further details on the promissory note.
The Project is situated within the Paradox Basin, which hosts the nearby, long-producing and currently-active Moab solar solution mine, operated by Intrepid Potash (NYSE-IPI- ~ $45) the largest potash producer in the U.S. There, a specific stratigraphic horizon, known as Cycle 5, has been mined since 1963. This same stratigraphic horizon extends to American Potash’s project, where an Exploration Target* from 600 million to 1 billion tons of sylvinite, with an average grade ranging from 19% to 29% KCL, has been estimated in a NI-43-101 compliant technical report prepared by Agapito Associates Inc. (October 2012).
Other assets from MD&A:
Green River Potash and Lithium Project – Initial Approvals to Drill Exploratory Wells
On December 14, 2022, the Company announced that it has received initial approvals from the Utah Division of Oil Gas and Mining on applications for permits to drill exploratory wells on three of its eleven 100% owned Potash and Lithium State mineral leases which form part of the Green River Potash and Lithium Project, located within the Paradox Salt Basin, Utah. The Green River Potash and Lithium Project is made up of the Company’s Paradox Basin Potash Permit Project and Paradox Basin Brine Potash and Potash Project. Formal drill permits will be issued upon meeting reclamation bonding and any other requirements stipulated in the Company’s Notice of Intent to Conduct Exploration. The three proposed wells are spaced widely apart, providing a large area of influence to draw upon for estimating potential potash and lithium resources within this portion of the project area.
La Escondida Silver-Gold Project - Drill Program
On March 8, 2022, the Company announced results from an inaugural drill program recently completed on its La Escondida Project that began in November 2021. The drill program consisted of 16 reverse circulation (RC) holes, totaling 1,780 metres, and was designed to investigate areas where previous rock-chip sampling returned high silver and elevated gold values along portions of the exposed strike lengths of two prominent veins. Twelve holes intersected significant precious metals mineralization with seven holes reporting narrow intervals with high grade silver assays generally within wider mineralization
Paradox Basin Brine and Potash Project Option Agreement
On December 23, 2021, the Company’s wholly owned subsidiary, American Potash LLC (the "Subsidiary" , entered into an option agreement (the "Option Agreement" with LiK Resources, LLC (the "Optionee" pursuant to which the Optionee was granted the right to earn up to a 100% interest in its Utah state leases for potash and mineral salts minerals along with 128 federal placer claims recently acquired by the Subsidiary (the "Project" .
Under the terms of the Option Agreement, to earn a 70% interest in the Project, the Optionee must make a cash payment of USD$150,000 within five days of the Option Agreement (paid) and complete a pre-feasibility study demonstrating the economic viability of the Project within 24 months of the date of the Option Agreement (the "Initial Option" . In the event the Optionee is a publicly traded company with a market capitalization of over USD$100 million at the time of delivering the pre-feasibility study, the Optionee must issue USD$1 million worth of its common shares to the Subsidiary within 45 days of completing the pre-feasibility.
Within 90 days of completion of the pre-feasibility study, LiK must commission and deliver a valuation on the Project performed by an independent third party (the "Valuation" to the Subsidiary. At any time following exercise of the Initial Option and within 90 days from the delivery of the Valuation, the Optionee shall have the right to acquire the remaining 30% interest in the Project by making a cash payment to the Subsidiary based on the valuation of remaining interest (the "Final Option" . In the event the Initial Option is exercised but the Final Option is not exercised, the parties will enter into a joint venture agreement to operate the Project.