Pacific Potash Closes $1,250,000 First Tranche of its $2,250,000 Financing and Announces Shareholder Special Meeting May 31, 2013
April 24, 2013 (Source: The Newswire) — Pacific Potash Corporation (TSX-V: PP; OTCQX: PPOTF; FSE: P9P, “Pacific Potash” “the Company”) is pleased to announce that the Company has received TSX conditional approval for its previously announced $2.25 million placement and has closed the first tranche consisting of 15,625,000 units for gross proceeds of $1,250,000
The second tranche of the financing involves a subscription for 12,500,000 units ($1,000,000) by Sino-Canada Natural Resources Fund I (“Sino-Canada Fund”). Upon closing of its subscription, Sino-Canada Fund will hold approximately 18.1% of the outstanding shares of Pacific Potash, on an undiluted basis. Pursuant to TSXV policies, the change of control resulting from Sino-Canada Fund’s subscription is subject to shareholder approval. The Company has set a shareholder meeting date for May 31, 2013 in order to receive approval for the change of control. In addition, upon closing, Sino-Canada Fund will have the right to appoint a nominee to be Co-Chairman and a Director of Pacific Potash Corp.
Sino-Canada Fund, which plans to invest over $500 million in the coming two years in Canadian listed and private companies that develop and operate natural resources projects worldwide, released the following statement to Pacific Potash, “We are excited about our investment in Pacific Potash. Sino-Canada Fund prides itself in being a long term investor in resource based projects and we look forward to being a cornerstone investor in Pacific Potash through all phases of development of their Brazilian potash project.”
“We are pleased to announce the first closing of the financing and look forward to welcoming Sino- Canada Natural Resources Fund as the new control entity, pending shareholder approval. We feel that Sino-Canada Fund and their nominee to the Board of Directors will bring significant experience and a solid partnership that will benefit Pacific Potash shareholders.” stated Executive Chairman and Director, Balbir Johal.
In compliance with Canadian Securities law, all securities issued in connection with the first closing of the private placement are subject to a hold period that will expire on August 23, 2013.
About Sino-Canada Natural Resources Fund:
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Sino-Canada Natural Resources Fund is a Cayman Islands registered private equity fund focused on investments in Canadian listed and private companies that develop and operate natural resources projects (mining, oil & gas, forestry) worldwide. Sino-Canada Fund is managed in Hong Kong on behalf of private and institutional investors from China.
About Pacific Potash Corporation:
Pacific Potash Corporation trades on the TSX Venture Exchange under the symbol: PP, as well on the OTCQX under the symbol: PPOTF and on the Frankfurt Stock Exchange under P9P. Pacific Potash is engaged in the exploration and development of the Amazonas Basin Project and the surrounding potash claims targeting the Middle Amazonas Potash Basin, currently the host to multiple new exploration campaigns for potash. The Company also is exploring the Provost Potash Property and the surrounding potash claims targeting the prolific Prairie Evaporite Formation, which is host to multiple conventional and solution potash mines.
On behalf of the Board,
Pacific Potash Corporation
Balbir Johal, LL.B
Executive Chairman& Director
For further information, please visit our website at www.pacificpotash.com or contact our V.P of Corporate Communications, Mike Blady:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking information
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Pacific Potash in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Pacific Potash’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Pacific Potash disclaims any obligation to update or revise any forward-looking information or statements except as may be required.
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