Vancouver — Pacific Potash Corporation on June 13 announced that it has signed an arms-length letter of intent to purchase all its issued and outstanding securities in Moonraker Acquisition Corp and its shareholders. Under the terms of the transaction, Pacific Potash will acquire all of the issued and outstanding shares of Moonraker from the shareholders in exchange for the issuance of 4,975,000 common shares of Pacific Potash. Moonraker will become a wholly owned subsidiary of Pacific Potash. Moonraker or Pacific Potash holds an option to acquire an 80 percent interest in Western Potash Corporation’s Brazilian potash assets, which comprise several claim parcels that extend from the Amazon River to the center of the Amazonas Basin, for a cash payment of $100,000, followed by an additional $150,000 and the issuance of 500,000 common shares of Pacific Potash within five days after approval of the agreement. On or before the first anniversary of the agreement, Moonraker or Pacific Potash must pay an additional $250,000 and issue a further 500,000 common shares of Pacific Potash. On or before the third anniversary, Moonraker or Pacific Potash must issue a further 500,000 common shares of Pacific Potash. The option also calls for $2 million in exploration expenditures over three years in order to earn the 80 percent interest, with a minimum exploration expenditure of $300,000 per annum. Once all of these commitments have been completed a joint venture will be formed, with Pacific Potash paying 80 percent of costs and Western paying 20 percent going forward. Potassio do Brasil, Petrobras, and Vale, among others, are also exploring for potash deposits in that region. On May 31, Potassio do Brasil announced that it had completed a US$58.66 million capital raising to further the exploration for potash at their Amazon Basin project.
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