Passport Potash Signs Letter of Intent for Holbrook Basin Potash
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 27, 2010) - Passport Potash Inc. (TSX VENTURE:PPI) ("Passport") is pleased to announce that it has signed a Letter of Intent ("LOI") with the Karlsson Group, Inc. ("Karlsson"), a corporation which holds and controls over 45 sections covering nearly 29,000 undeveloped acres of state and private lands in the Holbrook Basin to explore for and develop potash. Under the terms of the LOI, Passport shall exclusively negotiate with Karlsson for a 30 day period to jointly develop a Definitive Cooperative Agreement ("DCA") which shall detail the exploration and development of potash acreage. Also under the terms of the LOI, Passport and Karlsson shall jointly develop a plan of operation to conduct seismic surveys, land acquisition, drill core holes, and ultimately prepare a NI 43-101 compliant resource. Finally, Karlsson will escrow $100,000 which funds, upon the execution of a DCA, shall be applied towards leasehold expenses.
Steve Butrenchuk, President of Passport, commented, "We look forward to a partnership between Passport and Karlsson whereby we'll jointly control approximately 122 sections of state and private lands which cover almost 79,000 gross undeveloped acres. Karlsson has immediate access to funds to perform the initial exploration activity which includes the NI 43-101 resource calculation, permitting, and mine planning. Combined, we currently have permits to drill 19 core holes."