New Potash Company IPOs in Canada

Following on the theme of global food inflation, whose demand is mostly triggered by increased global income (population eating better), Athabasca Potash started trading under symbol API on the Toronto exchange.

Potash has no commercial substitute its application increases yield & plant health.

The company is exploring its Burr Project and recently completed a 2D seismic survey of the project as well as five new exploration drill wells. After the IPO the Company will proceed with further exploration, a scoping study, and a preliminary feasibility study to assess the viability of underground potash mining. Athabasca also plans to conduct exploration programs over the other ten exploration permits it holds in addition to the Burr Project.

API started trading on December 13. The IPO had an offering of 10,140,000 common shares at a price of CDN$4.25 per share, for gross proceeds of CDN$43 million. The stock reached a high of $10.47 and is currently trading at over $10. There are just over 34M shares outstanding. Assays are expected in Q1 2008, new resource estimate in Q2 2008. Production is several years into the future (7-10 years).

The Burr project is located in Saskatchewan, the prime location of reserves of Potash Inc. Saskatchewan holds over 50% of the world’s potash reserves.

Click here for Athabasca Corporate Presentation. I have no position in this company, I am just keeping an eye on it.