News Releases
February 18, 2010
Agreement with Wendy Walker Tibbetts and U.S. Potash, LLC
Vancouver, BC February 18, 2010 - Ringbolt Ventures Ltd. (TSX-V:RBV, Frankfurt: 30Z) ("Ringbolt" or the "Company") wishes to announce that the Company has entered into an agreement (the "2010 Agreement") for the transfer of potash leases and permits held by its subsidiary BUA USA, LLC ("BUA") to Potash Green Utah, LLC ("PotashCo"), a new limited liability company formed under the laws of the state of Utah. The 2010 Agreement also requires U.S. Potash, LLC ("U.S. Potash") to transfer certain potash leases and applications as well as oil and gas leases into PotashCo. PotashCo will be operated jointly between Ringbolt and Wendy Walker Tibbetts ("Tibbetts") for the purpose of further developing the properties held by PotashCo (the "PotashCo Claims") and to acquire further exploration properties. Ringbolt will have a 70% equity interest in PotashCo. The remaining 30% will be held by Tibbetts.
The Company holds 90% of the issued and outstanding equity in BUA and Tibbetts holds the remaining 10%. Under the 2010 Agreement Tibbetts will transfer its 10% interest in BUA to Ringbolt upon the establishment of PotashCo and transfer of the properties to PotashCo. The Agreement was negotiated as an arm's length transaction and part of a settlement of an action commenced by Tibbetts in the state of Utah for unpaid salary and expenses as a manager of BUA. The Agreement replaces an earlier share purchase agreement (the "2009 Agreement") previous negotiated by the parties for the purchase of Ringbolt's 90% interest in BUA by Tibbetts as a settlement of the action by Tibbetts. The shareholders of Ringbolt have authorised the Board of Directors to enter into the 2009 Agreement and also granted the Board authority to not proceed with the transactions set out therein. The Board has decided that the Potash Claims represent an excellent business opportunity for the Company given the positive long-term fundamentals for potash. Furthermore, the Company has successfully resolved its differences with Tibbetts and is confident that the 2010 Agreement will provide the basis for a new and improved working relationship between the parties.
The Property
The potash leases and prospecting permits applications are to be transferred by U.S. Potash to PotashCo and are located in two states Utah and Arizona. A summary of the property holdings is set out below.
The Holbrook Basin Project
The property currently held by U.S. Potash in are to be transferred to PotashCo are referred to as the Holbrook Basin Project and are located in East-central Arizona, in Apache County. The property consists of seven Potash M-E Prospecting Permits totaling 4478.34 acres in T17N R26E, and eight Oil and Gas Leases totaling 14,072.74 acres in T17N R R25 & 26E.
The Holbrook Basin Project is located in the Permian Holbrook Basin. The Basin has been historically explored for oil, gas, and potash. In 2008 Rauzi and Arizona Geological Survey geologist compiled 241 well logs using the public record. The Analysis consisted of Gamma Ray, Neutron, Radioactive downhole geophysical logs and core chip samples stored at the Arizona Geological Survey warehouse. Based on Rauzi's analysis the potash-bearing formation is in the upper Supai formation ranging in thickness from 450 to 1300 feet consisting of siliceous clastic rocks, interbedded limestone, dolomite and evaporate. The potash bearing minerals are found at the top of the Upper Supai Formation consisting primarily of sylvite, carnalite, and polyhalite. Thickness of the bed ranges from a few inches to 40 feet. The anticipated depth to the bed ranges from 700 to 2000 feet below surface, however in most areas in the Holbrook Basin Potash Project area is 1000 to 1450 feet below surface.
There is no reported potash exploration has been done on the potash leases and no commercial potash has been identified. The company's focus to explore for economically viable potash deposits. In an effort to achieve this the company intends to undertake an aggressive exploration program consisting one drill hole in each of the seven leases.
Based on the compilation published by Rauzi in 2008 Holbrook Basin the company believes it to be underlain by a continuous potash horizon of variable thickness. Therefore a drilling program is required to verify the presences of potash on the property. The budget of the planned initial program is expected to be approximately $235,000 USD.
The Lisbon Valley Project
The Lisbon Valley Project located in the Paradox Basin consists of 12 applications held by U.S. Potash for Potash Prospecting Permits, totaling 28,217.64 acres,. The Lisbon Valley Project is located in Lisbon Valley, San Juan County, Utah. The permit applications have not at this date been converted to Permits by the Bureau of Land Management.
The Paradox Basin is a large sedimentary basin containing rocks of Pennsylvanian to Cretaceous age. The salt and potash beds are in the Pennsylvanian Paradox formation that is over 4000 feet thick with 29 separate cycles of salt, potash, and clastic sediments. The salt beds are located near the top of the evaporate sequence and are expected to occur at depths of 3000 to 4800 feet on the Lisbon Valley Project.
Potash was first discovered Paradox Basin in an oil and gas well 1924. In 1962 Superior Oil Company drilled the first potash to crest of the Lisbon Valley anticline. Since 1964, potash and by-product salt have been produced from the Cane Creek Mine. The Cane Creek Mine was first owned and operated by Texas Gulf Sulphur and now owned and operated by Intrepid Potash Company. Potash was originally produced by underground mining and in 1970 the mine was converted to solution mining. Solution mining has proven to ideal process in the project area because of the hot summers and low humidity. The mine has produced nearly continuously since 1964 and reportedly has a future mine life of 30 years. No current exploration or production is ongoing in the area.
The Company plans to explore the property by rotary drilling to a point just above the potash beds, followed by core drilling through the potash beds. The core will be analyzed for potash, and gamma ray logs will be run to confirm the presence and grade of the potash. It is recommend that a drill hole be completed to a depth of 2200 meters to test the depth, thickness and grade of the potash beds at a cost of $775,000 USD.
Based on the available data The company believes the Lisbon Valley Project is a viable exploration project. Historical drilling in the Lisbon Valley indicates it is underlain by a continuous potash horizon of variable thickness.
Technical information in this news release has been reviewed by Derrick Strickland, P. Geo., a qualified person as defined in NI 43-101.
On behalf of the Board of Directors
Simon Tam, Director
Disclaimer and Cautionary Statement Regarding Forward-Looking Information
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.
All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.
Ringbolt Ventures Ltd. seeks safe harbor.
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