Yeah, there is a massive railroad running through the Holbrook Basin. However, in order for Prospect to access the line, they'll have to pay Passport ! Same thing is true with Prospect's proposed mine site ! Since over 10% of the site is located on Passport property, again, you'll have to pay dearly !!!
DENVER, Jan. 8, 2013 /PRNewswire/ -- Prospect Global Resources, Inc. (NASDAQ: PGRX) today stated that recently announced potash pricing of $400 per metric ton for shipments to industrial companies in Asia in the first half of 2013 validates the Company's operating model and the value of the 10-year offtake agreement that it signed last fall with a major Chinese buyer.
On October 22, 2012, Prospect Global and Sichuan Chemical Industry Holding (Group) Co., Ltd. of Chengdu, China, jointly announced a more than $2-billion, 10-year agreement under which Sichuan will purchase at least 500,000 metric tons of potash annually, or 25% of the projected output of Prospect Global's American West Potash field in Holbrook, AZ.
At current market levels, the long-term arrangement with Sichuan would yield attractive returns.