Sprott Resources announces major stake in Potash Ridge following lacklustre IPO
Canada's Sprott Resource Corp (TSX:SCP) has announced that it holds a major stake in Potash Ridge Corporation following the company's disappointing IPO.
Canada Newswire reports that documents publicly filed by Potash Ridge indicate that Sprott Resource now holds approximately 19.9% of the total issued and outstanding common shares in the company via Sprott Resource Partnership.
The Wall Street Times reported last week that Potash Ridge raised only a disappointing 20 million Canadian dollars from its IPO – around half of the amount the company hoped to raise for the development of a mine in Utah.
The disappointing IPO arrived at a troubling time for the global potash market, with Potash Corp. of Saskatchewan (TSE/NYSE:POT), the world's biggest potash producer, logging a 22% decline in Q3 earnings and analysts foreseeing the development of a potash spot market which will drive prices lower and trigger greater price volatility.