Tightening times in the financial market is putting the squeeze on PhosCan Chemical Corp., whose Martison Phosphate Project north of Hearst will no longer begin production in 2012.
A number of tasks related to the development of the project are being deferred as the company seeks to balance advancing the project with preserving its cash. As such, a reduced development program will be undertaken for 2009, including the elimination of its 2009 winter drill program.
Through the year, the company will instead pursue geophysics at the proposed mine site, permitting, biological studies, as well as a pilot plant-level ore testing program. An impact and benefit agreement with local First Nations will also be sought.
Following the completion of the reduced program, PhosCan expects to have nearly $70 million of uncommitted cash on hand.
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