Potash Company of Saskatchewan press release.
For Immediate release
December 23, 1997
Listed: TSE, ME, NYSE
Potash Corporation of Saskatchewan Inc.
Signs letter of Intent to Purchase
Potash Company of Canada
Saskatoon, Saskatchewan - Potash Corporation of Saskatchewan Inc. announced today that it has signed a letter of intent to purchase all the outstanding shares of Potash Company of Canada ("Potacan") from Kali und Salz AG of Germany and Enterprise Miniere et Chimique of France. The parties will work toward a completion of a definitive Purchase and Sale Agreement expected sometime in early 1998.
Upon successful completion of the transaction, PCS plans to utilize the Potacan Mill at Clover Hill, New Brunswick to upgrade standard grade potash from Saskatchewan to granular product for shipment into eastern Canada and the United States. PCS also plans to investigate additional future opportunities for the potacan facility such as expanding the production of potash ore at the PCS Sussex mine to be processed at the Potacan mill and potential conversion to solution mining.
Mr. C.E. Childers, Chairman, President and Chief Executive Officer, stated, "The PCS assets and experience offer the widest range of opportunities for the Potacan mine. We have excess standard product capacity in Saskatchewan to utilize the compaction facilities in New Brunswick and the accompanying market infrastructure. Alternatively, our potash mine in New Brunswick can be expanded, providing ore to be processed at the Potacan mill and we are the only company in the world to have successfully converted a conventional mine to a solution mine." He continued by saying "For PCS, this transaction will support our efforts to best serve our North American customer base."
Potash Corporation of Saskatchewan Inc. is the world's largest potash company by capacity, the third largest phosphate producer and the second largest nitrogen producer. It pulls product from eight potash mines in Saskatchewan, New Brunswick and Utah. It's Phosphate facilities are located in Florida, North Carolina and Louisiana and it's nitrogen facilities are in seven states plus large scale operations in Trinidad.