Pacific Potash Corporation Focuses on Brazil Advantage
Vancouver, British Columbia - July 31st, 2013 - Pacific Potash Corp. (TSX-V: PP; OTCQX: PPOTF; FSE: P9P, "Pacific Potash", "the Company") would like to reiterate its main focus is its Amazonas Basin Potash Project with drilling planned to commence in September. News of Uralkali's exit from Belarusian Potash Co. ("BPC"), and its expressed intention to increase production by 2.5 million tonnes next year, has had an inordinate negative effect on potash stocks. The Company is in agreement with a statement made by K+S Aktiengesellschaft ("K+S") that the pricing for potash fertilizers being spread by the media are unjustified and that they do not reflect the current supply and demand situation in the potash market.
Pacific Potash is of the opinion that it is uniquely positioned in the Brazilian market having a substantial logistical cost advantage being located within a few hundred kilometers to the end user for its product. Brazil is the third largest consumer of potash globally and is also the world's largest growing potash market, as its fastest growing and largest industry is agribusiness. The Country has an estimated 30% of the world's remaining arable farmland and is poised for long-term growth within this sector. The Brazilian National Fertilizer Association (ANDA) has released data showing that 2012 potash consumption increased (9.3% year-over-year) to a record 8.1 million tonnes of KCl, 93% of which was imported. The country currently has only one operating potash mine, Taquari-Vassouras Mine in Sergipe Basin that produces approximately 700,000 tons of KCL per year (7% of Brazil's demand). Presently, the cost of shipping, freight, importation duties and taxes can cost well over $100 per ton in addition to the potash spot price. A project located in the Amazonas Potash Basin supplying to the N-P-K blending plants locally in Brazil would incur shipping and logistical cost of in the neighborhood of $30-50 per ton.
In addition to Urakali's news, Potash Corp of Saskatchewan received TSX approval today for a 1 year 43,345,922 million share buyback program representing 5% of the company's outstanding common shares.
About PacifIC Potash Corp.
Pacific Potash Corp. trades on the TSX Venture Exchange under the symbol: PP, as well on the OTCQX under the symbol: PPOTF and on the Frankfurt Stock Exchange under P9P. Pacific Potash is engaged in the exploration and development of the Amazonas Basin Project and the surrounding potash claims targeting the Middle Amazonas Potash Basin, currently the host to multiple new exploration campaigns for potash. The Company also is exploring the Provost Potash Property and the surrounding potash claims targeting the prolific Prairie Evaporite Formation, which is host to multiple conventional and solution potash mines.
On behalf of the Board,
Balbir Johal, LL.B
Executive Co-Chairman & Director
For further information, please visit our website at www.pacificpotash.com or contact our V.P of Corporate Communications, Mike Blady:
Mike Blady
Office: 604.895.7446
Email: mblady@pacificpotash.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Pacific Potash in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Pacific Potash's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Pacific Potash disclaims any obligation to update or revise any forward-looking information or statements except as may be required.
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