Shares of junior miner Potash One Inc. are getting a major boost Tuesday after the company named mining promoter Robert Friedland as chairman.
Best known for previous ventures including the Voisey's Bay nickel find and the Oyu Tolgoi copper and gold discovery in Mongolia, Mr. Friedland will help Potash One secure financing from Asian investors.
Potash One shares surged more than 22 per cent on the Toronto Stock Exchange Tuesday.
The company is developing several potash projects in Saskatchewan including its flagship Legacy project. The mine is expected to cost billions to build.
Mr. Friedland's venture capital firm, Ivanhoe Capital Pte. Ltd., will introduce Asia-based investors to Potash One. Asian countries are huge buyers of potash and fertilizer and may be looking to secure supply at long-term contract prices.
“Potash, or potassium, truly is the mineral of life,” Mr. Friedland said in a statement. “Potash One represents the best new opportunity to develop a world-class potash operation.”
Saskatchewan hasn't seen a new potash mine for nearly 40 years, in part because of a decades-long slump in prices and the fact that deep potash mines are extremely expensive to build.
Potash prices have soared recently as the diets of developing nations including China, India and Brazil have shifted to include more meat, boosting demand for fertilizer.
Mr. Friedland was an investor in Potash North Resource Corp. which recently merged with Potash One.
© The Globe and Mail
