Universal Potash Corp Acquires Interest in Three Square Miles Adjacent to Lisbon Valley Paradox Basin KPLA
February 17 2011 - 12:30PM
Marketwired
Universal Potash Corporation (the "Company") (PINKSHEETS: UPCO) is
pleased to announce the company has negotiated the acquisition to a
majority interest in the potash rights to three square miles of
prospective ground in the Paradox Basin of Utah. The leased
property is located less the 1,000 yards west of the Bureau of Land
Management's designated KPLA (Known Potash Leasing Area) reserve.
The UPCO acquisition encompasses nearly 2,000 acres of the School
and Institutional Trust Lands Administration (SITLA) tracts of
subsurface potassium rights. Direct access and infrastructure is
immediately contiguous to the acquired project area. This includes
a pool of professional labor, a major highway, natural gas pipeline
and close proximity of a major power source. Improved roads
crisscross the leases. The company has in its possession oil and
gas well data displaying sections of salts nearly 3,000 feet thick
containing multiple potassium (Potash) beds within the Paradox
salts.
This purchase fits well with our earlier successful acquisition
in which we were the winning bidder on Utah Potash Lease
Applications for a total of 640 acres of prospective ground
northwest of Moab in the Paradox Basin of Utah. These leased
properties are located immediately to the South and contiguous to
the company's current Potash applications pending approval,
covering a total of 29,000 acres. The two new properties are
immediately west and adjacent to School Sections that have seen
previous drilling for oil/gas and encountered significant
intersections of both Sylvite and Carnallite, with Sylvite (Potash)
values averaging near 20%, but ranging as high 49%.
World and domestic food shortages have potash fertiliser prices
moving higher. The current demand for the product is driven by
increased production to meet the growing world demand and the
necessity to offset the grain shortages in the world due to climate
change and the world's middle class population growth. Grain demand
has resulted in an 8 fold increase to satisfy the population's
demand for more protein products worldwide. Potash price increases
have sent the share prices of many potash producers as well as
explorers higher in recent months supported by BHP Billiton's
recent $39 billion hostile takeover bid for Potash Corporation of
Saskatchewan, the world's largest producer.
About Universal Potash Corp. Universal
Potash Corp. is an acquisition driven exploration stage potash
mining corporation dedicated to increasing shareholder value. The
Management of Universal Potash's principal focus is the acquisition
of premium leasehold properties and the future development of these
properties and business interest on a global basis. Management
efforts are channeled into building Universal Potash Corp into an
international enterprise and becoming a key player in meeting the
growing challenge of feeding the world.
"Safe Harbor" Statement: Under the Private Securities Litigation Reform Act of
1995: The statements in all press releases that relate to the
company's expectations, with regard to the future impact on the
company's results from new projects in development, are
forward-looking statements. A complete disclosure of our "SAFE
HARBOR "statement is posted on our website at
www.UniversalPotash.com under the heading "NEWS."
Contact: For Additional Information Please Call
Investor Relations Toll Free 1-877-331-8777
Universal Potash (CE) (USOTC:UPCO)
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