Vancouver-Potash One Inc. reports that the two potash permit applications (KP 416 and KP 417) sold by the company to 0821474 B.C. Ltd. (Numberco), a subsidiary of Peninsula Merchant Syndications Corp. (Peninsula), a private company at arms length to the company and its directors and officers, have been sold by Peninsula to Timer Explorations Inc. (Timer), a reporting issuer in British Columbia whose common shares are listed on the TSX Venture Exchange and which is also at arms length to the company and its directors and officers. To acquire the permits, Timer will purchase all of the outstanding shares of Numberco. This acquisition by Timer is part of a larger transaction pursuant to which Timer will also complete (i) a subdivision of its shares on a 2 new shares for 1 old share basis, (ii) an $8.4 million private placement of units at a price of $0.35 per unit, with each unit consisting of one post-split common share and one post-split common share purchase warrant entitling the holder to purchase a further post-split common share at a price of $0.50 per share for a period of two years, (iii) the change of the name of Timer to “Potash North” or another name reflective of the new business of Timer, and (iv) the appointment of new directors and officers to the board of Timer. Potash One holds rights to purchase a sufficient number of units in the private placement such that it will hold approximately 13 percent of the outstanding common shares of Timer and up to 20 percent of any equity securities. It can also nominate a director to the Timer board. It has nominated Paul Matysek to the Time board to oversee its investment. “The Timer transaction provides Potash One with an excellent opportunity to make a significant investment at the ground floor level, in a newly established Saskatchewan potash exploration company,” said Matysek, Potash One president and CEO. For more information, see www.potash1.com.
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