Potash Ridge, Watco enter agreement on construction and rail service

Written by Jenifer Nunez, assistant editor

Potash Ridge Corporation has signed a Memorandum of Understanding (MOU) with Watco Companies for activities related to the Build-Own-Operate (BOO) of a loading facility and shortline railroad to service the Blawn Mountain Project in Utah.

 

Under the terms of the MOU, Watco will undertake the development, financing and operation of a shortline railroad connecting the project to the Union Pacific mainline near Milford, Utah, and a loading facility for its sulphate of potash, sulphuric acid and alumina rich material saleable products. Initial work contemplated under the MOU would begin after the commencement of a feasibility study, subject to successfully raising additional financing.

“We are very pleased to have entered into this arrangement with Watco for the development of a loading facility and associated shortline railroad for the project,” said Guy Bentinck, president and chief executive officer. “This long-term partnership with Watco represents another important commercial step for the development of the project and will provide the corporation with access to the extensive U.S. rail distribution network. Watco’s participation in BOO arrangements for infrastructure assets is another excellent endorsement of the Project.”

“We believe this project will be a complement to our existing operations in Utah and will help to build new relationships in the state,” said Mark Blazer, senior vice president, strategic development.

 

 

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