Mountain Capital Inc. – Acquires Vermilion 15 Potash Permitsadmin
Mountain Capital Inc., subject to regulatory approval, has signed an agreement to purchase a 100-per-cent interest in the Vermilion 15 Potash Property, located in east-central Alberta. The property consists of four metallic and industrial minerals permit applications that were recently awarded through private bid by the Department of Energy, Alberta. The Vermilion 15 Potash Property encompasses approximately 77,665 acres (31,430 ha), located about 30 km west to southwest of Lloydminster, Saskatchewan.
The property is underlain by the Prairie Evaporite Formation at depths that range from approximately 1050 to 1200 meters. It is also the site of the historic Vermilion No. 15 Well (VCO #15), which encountered substantial quantities of sylvite within the uppermost 50 feet of the Prairie Evaporite Formation. Golden (1965) reported “The potash minerals in the VCO #15 well are of the same composition and depositional sequence and depth as the potash at Unity, and it is feasibly possible that the potash in VCO #15 and Unity are one large continuous deposit”.
At Unity, Saskatchewan, which is about 50 km east of the Alberta-Saskatchewan border, the Verbata No. 2 Well contained 21.64% K2O across 11 feet at a depth of 3,466 feet (1057 meters; Cole, 1948). When the Vermilion No. 15 Well was drilled during 1944/45, the cores (Golden, 1965) “were exposed for weeks before being spot analyzed. Because of the very high solubility of sylvite, a true and accurate analysis was probably not ascertained, but the core description indicates the presence of sylvite in substantial quantities”.
“We are very excited about the potential of the Vermilion No. 15 Potash Property, as the historic geologic data suggests that this project may be part of a very extensive potash deposit that has not been adequately tested. Our review of gamma-ray logs within the area has shown a number of responses similar in magnitude to those within the Unity Potash Deposit, just across the border in Saskatchewan,” said Blair Naughty, President of Mountain Capital Inc. “The Company has begun the process of a 43-101 report on the project and hopes to have it completed within the next 45 days.”
The agreement calls for Mountain Capital to pay to the Vendors the sum of $230,000 CDN, and issue to the Vendors an aggregate of 1,350,000 fully paid and non-assessable common shares of its capital stock upon exchange approval. The Company will also issue to the Vendors an aggregate of 1,350,000 non-transferable share purchase warrants exercisable for a period of two (2) years from the Approval Date into one additional common share of the Purchaser at a price of $0.55 per share in the first year and at a price of $0.70 in the second year.