Potash Ridge Corporation announced that it has signed a Memorandum of Understanding ("MOU") with Watco Companies LLC for activities related to the Build-Own-Operate ("BOO") of a loading facility and short-line rail road to service the Blawn Mountain Project.
Under the terms of the MOU, Watco will undertake the development, financing and operation of a short-line railroad connecting the Project to the Union Pacific railroad main line near Milford, Utah, and a loading facility for its sulphate of potash, sulphuric acid and alumina rich material saleable products. Initial work contemplated under the MOU would begin after the commencement of a feasibility study, subject to successfully raising additional financing.
Guy Bentinck, President and Chief Executive Officer said, "We are very pleased to have entered into this arrangement with Watco for the development of a loading facility and associated short-line railroad for the Project. This long-term partnership with Watco represents another important commercial step for the development of the Project and will provide the Corporation with access to the extensive U.S. rail distribution network. Watco's participation in BOO arrangements for infrastructure assets is another excellent endorsement of the Project."
Mark Blazer, Senior Vice President, Strategic Development of Watco added, "I am very proud of the Watco Team for being chosen to participate in this project. We are very excited to go to work with our great partner, Potash Ridge Corporation. in the development of the Blawn Mountain Project. We believe this project will be a complement to our existing operations in Utah and will help to build new relationships in the state."