TSXV: PP
OCTQX: PPOTF
FSE: P9P
VANCOUVER,
Nov. 22, 2014 /CNW/ - Pacific Potash
Corporation (TSX-V: PP) ("Pacific Potash" or the
"Company") is pleased to announce that it has entered into a
non-binding Memorandum of Understanding of strategic investment
with Northern International Group, a Chinese conglomerate,
witnessed by the Canadian Prime Minister Stephen Harper, Canadian Minister of Foreign
Affairs John Baird, and Canadian
Minister of Agriculture and Agri-Food Gerry
Ritz, during the Prime Minister's official visit to
China and the APEC Economic
Leaders' Meeting. The M.O.U demonstrates and represents a
significant part of the further deepening bilateral commercial
relationship between Canada and
China.
The M.O.U outlines the proposed terms of a
transaction pursuant to which Northern International Group will
subscribe for CDN $15,000,000 by way
of convertible debenture of Pacific Potash. The proceeds from the
investment will be used for development of Pacific Potash's
exploration program, consisting primarily of drilling, and for
general working capital. The proposed terms of the debenture, which
remains subject to definitive documentation and approval from the
TSX Venture Exchange, are: interest at 3.5% per anum payable
semi-annually, a three year term, unsecured and convertible into
common shares of the Company at $0.37
per share. The Company will have the right to force
conversion of the debenture in certain circumstances.
On successful completion of due diligence phase,
the parties will diligently and in good faith negotiate a
definitive subscription agreement for the Convertible Debenture.
This agreement is subject to the regulatory approval of the TSX
Venture Exchange.
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
Provost Potash Property and the surrounding potash claims targeting
the prolific Prairie Evaporite Formation, which is host to multiple
conventional and solution potash mines. The Company also has an
option to acquire an 80% interest in Western Potash Corporation's
(TSX: WPX) Amazonas Basin claims.
We seek safe harbour.
On behalf of the Board,
Pacific Potash Corporation
Balbir Johal, LL.B.
Executive Co-Chairman and Director |
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Tao Liu
Co-Chairman and Director |
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.
SOURCE Pacific Potash corporation