Toronto and Oslo — IC Potash Corp. and Yara International SAS said April 12 that they have completed a deal in which Yara invested C$40 million in ICP (GM April 9, p. 13). ICP and Yara have also entered into a committed off-take agreement for the purchase of 30 percent of all products produced by ICP’s Ochoa project in New Mexico for a period of 15 years, and have agreed to discuss the possibility of establishing a jointly held entity for the purpose of marketing products produced by the Ochoa project. "We are delighted to finalize this investment and off-take with ICP,” said Yara President and CEO Jørgen Ole Haslestad. “Through this partnership, we have further positioned ourselves with a long-term upstream exposure to premium potash. We believe the North American market represents a significant opportunity for sulfate of potash and we look forward to working with ICP to bring the Ochoa project into production.” In connection with the investment, ICP issued to Yara 30,129,870 common shares at a price of C$1.32 per common share for total gross proceeds of C$39,771,428, resulting in Yara owning 19.9 percent of the issued and outstanding common shares of ICP on a non-diluted basis. The issue price represents a 41 percent premium over the 20-day volume weighted average price of ICP’s common shares traded on the Toronto Stock Exchange as of the closing on March 30, 2012, the last completed trading day prior to the announcement of the transaction. Following completion of the investment, ICP has 151,406,384 common shares issued and outstanding. Yara has the right to appoint one representative to ICP’s board of directors and the right to participate pro rata in all future equity or equity linked issuances by ICP.
Transparency Across the Fertilizer Value-Chain