American Potash To Rebrand To American Critical Minerals
FULL DISCLOSURE: This is sponsored content for American Potash.
American Potash Corp (CSE: KCL) has announced a rebranding, as it expands its exploration efforts to include both potash and lithium at its Green River Project in Utah.
The company has indicated that it will be changing its name to American Critical Minerals Corp. As part of the rebranding measure, the company will also change its trading symbol to “KCLI”. The change, as per American Potash, is part of an effort to “better describe the opportunities it is pursuing,” with potash and lithium both being key areas of focus.
American Potash’s Green River Project, found in the Paradox Basin, is prospective for both potash and lithium. The property currently has a potash exploration target of 600 to 1.0 billion tonnes of sylvinite with grades between 19% and 29% KCL, but is also underlain with two formations that have brine-bearing clastic layers, which includes lithium brine. Projects that currently neighbour the Green River property are in the process of piloting and advanced development with lithium extraction.
The Green River Project, a mix of state and federal land, is fully bonded to conduct three drill holes across the state mineral leases in search of potash and lithium, and four holes across federal lands in search of potash. The project currently contains 1095 federal lithium brine claims, 11 federal potash prospecting permits, and eleven State of Utah minerals and mineral salt leases. The entire project measures roughly 32,530 acres in size.
In an effort to fund exploration, American Potash this morning also indicated it will be raising $1.0 million via the issuance of 12.5 million units at a price of $0.09 per unit. Each unit is to contain one common share and one half warrant, with each full warrant containing an exercise price of $0.15 and a two year expiry. Proceeds from the financing are to be used to evaluate and explore the Green River project.
READ: Potash & Lithium: American Potash’s Double Play | Simon Clarke
Finally, the company plans to undertake a share consolidation upon the close of the financing. The consolidation, at a ratio of 2.5 pre-consolidation shares to 1 post-consolidation share, is expected to reduce the total shares outstanding to 53.8 million.
American Potash last traded at $0.08 on the TSX Venture.
FULL DISCLOSURE: American Potash is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of American Potash. The author has been compensated to cover American Potash on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
