USGS releases first study to assess global earthquake risk to mineral supplies
Earthquakes have the potential to substantially affect mining operations, leading to supply chain disruptions that adversely affect the global economy.
IC Poatash (TSE:ICP) popped 17% to $1.04 share on Monday after Yara International announced a $40 million “strategic investment” in the company on Friday.
Yara, a large chemical company with headquarters in Oslo, Norway, will pay $1.32 per common share of IC Potash. It has also has committed to an off-take agreement and will purchase 30% of all products produced by ICP’s Ochoa project in New Mexico for a period of 15 years.
“ICP will issue to Yara 30,129,870 common shares at a price of $1.32 per common share for total gross proceeds of C$39,771,428,” said ICP in a statement.
“After giving effect to the transaction, this will result in Yara owning 19.9% of the issued and outstanding common shares of ICP on a non-diluted basis. The issue price represents a 41% premium over the 20 day volume weighted average price of ICP’s common shares traded on the Toronto Stock Exchange as of the closing on March 30, 2012. The investment has been conducted as a non-brokered private placement.”
IC Potash plans to produce sulphate of potash and sulphate of potash magnesia at its polyhalite ochoa property in New Mexico, containing proven and probable reserves of more than 400 million tons of ore within the proposed mine plan.
Yara International ASA is a chemical and agricultural business located in Norway. The company has about 7,300 employees, with operations in more than 50 countries and sales to over 120.
