Vancouver-Potash North Resource Corp. said June 10 that it has entered into an agreement with a syndicate of agents – led by Canaccord Capital Corp. and including GMP Securities LP, National Bank Financial Inc., Wellington West Capital Markets Inc., Genuity Capital Markets, and Salman Partners Inc. – whereby the agents act as the company’s agent to complete a private placement offering of 10,000,000 units at a price of $2.50 per unit, for gross proceeds of approximately $25,000,000. Each unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire one common share of the company at $4.00 per share for a period of 24 months. The company has granted the agents an over-allotment option to solicit an additional 2,000,000 Units, for additional proceeds of up to $5,000,000, exercisable 48 hours prior to closing. In addition, Potash One Inc. has rights to subscribe for up to 20 percent of the units sold under the offering, which would entitle them to acquire up to a further 3,000,000 units, for further proceeds of up to $7,500,000. The offering is expected to close on or about July 7, 2008. Net proceeds from the offering will be used to fund the exploration, evaluation and potential development of the company’s KP416 and KP417 potash permits in Saskatchewan and for general corporate purposes. Potash North was formerly known as Timer Explorations Inc.
Transparency Across the Fertilizer Value-Chain