Passport Potash Inc.: Closing of Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/13/12 -- Passport Potash Inc. (TSX VENTURE: PPI) (the 'Company') is pleased to announce that, further to its news releases dated December 16 and 29, 2011, it has now closed the non-brokered private placement consisting of 41,666,425 units (each a 'Unit') of the Company, at a subscription price of $0.18 per Unit, for gross proceeds of $7,499,956.50 (the 'Offering').
Each Unit consists of one common share and one-half of one common share purchase warrant (a 'Warrant') of the Company with each whole Warrant entitling the holder thereof to purchase one additional common share of the Company (a 'Warrant Share') at an exercise price of $0.20 per Warrant Share up to and including January 11, 2013.
All Shares issued pursuant to the Offering, and any Warrant Shares issuable in connection with the exercise of any of the Warrants, if any, will be subject to a four month hold period expiring on May 12, 2012, in accordance with the policies of the TSX Venture Exchange and applicable securities laws.
A finder's fees of $34,997.19 in cash and 194,428 finder's warrants (the 'Finder's Warrants') are being paid and issued in conjunction with the closing of the Offering, with each such Finder's Warrant having the same terms as the Warrants forming part of the Units under the Offering.
Proceeds of the Offering are to be used for general working capital and the current exploration program.
On behalf of the Board of Directors
PASSPORT POTASH INC.
Laara Shaffer, Director
Forward-Looking Statement
This news release includes certain statements that may be deemed 'forward-looking statements'. Forward-looking information includes, but is not limited to: statements with respect to the effect and estimated timeline of the drilling and assay results on the Company; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting ; government regulation of mining operations; potential future expansion of the PFNP; environmental risks; unanticipated reclamation expenses; and title disputes or claims. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: unsuccessful exploration results; changes in metals prices; changes in the availability of funding for mineral exploration; unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedar.com.
Neither 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.
Contacts:
Passport Potash Inc.
Peter J. Kletas
Corporate Communications
866-999-6251-Toll Free
peter@passportpotash.com
Passport Potash Inc.
Clive Mostert
Corporate Communications
780-920-5044
cmostert@passportpotash.com
www.passportpotash.com