Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the
“Company”) is pleased to announce it has signed an agreement that
enables it to extinguish its approximately $7.3 million of senior
unsecured debt for approximately $1.3 million in common stock, which is
approximately 17 cents on the dollar. The extinguishment of this debt on
these terms is contingent upon Prospect Global successfully
extinguishing its senior secured debt as previously announced for $25
million no later than March 10, 2014.
The senior unsecured debt matures on July 1, 2015, subject to
acceleration upon certain events. Prospect has been obligated to make
principal payments on the debt with 10% of any proceeds raised before
maturity.
“The extinguishment of our senior unsecured debt will continue to
strengthen our balance sheet and position the Company for the continued
development of our Holbrook Project,” said Damon Barber, Prospect
Global’s President and CEO. “As previously noted, moving to an all
equity capital structure will give us the flexibility to pursue a
broader range of financial and strategic options as we continue the
development of North America’s next potash mine.”
On behalf of the Board of Directors,
Damon G. Barber
President and Chief Executive Officer
Regarding Forward-Looking Statements
With the exception of historical matters, the matters discussed in
this press release include forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially
from projections or estimates contained herein. Such forward-looking
statements include statements regarding current and future
classification of Prospect Global’s potash resources, development of its
potash resources and potash mining facility and the Pre-Feasibility
Study. Factors that could cause actual results to differ
materially from projections or estimates include, among others, potash
prices, economic and market conditions, and the additional risks
described in Prospect Global's filings with the SEC, including Prospect
Global's Annual Report on Form 10-K/A for the year ended March 31, 2013.
Most of these factors are beyond Prospect Global's ability to predict or
control. The forward-looking statements are made as of the date hereof
and, except as required under applicable securities legislation,
Prospect Global does not assume any obligation to update any
forward-looking statements. Readers are cautioned not to put undue
reliance on forward-looking statements.
About Prospect Global Resources Inc.
Prospect Global Resources Inc. is a Denver-based company engaged in
the exploration and development of a potash mine located in the Holbrook
Basin of eastern Arizona. Prospect Global’s stock is traded on the
NASDAQ Capital Market under the ticker symbol PGRX.
Additional details about Prospect Global Resources Inc. can be viewed
at the Company’s website, www.prospectgri.com.
Copyright Business Wire 2014