Passport Potash, Inc. Enters Option Agreement with Ringbolt Ventures, Ltd. to Acquire Potash Property in the Holbrook Basin
VANCOUVER, BRITISH COLUMBIA — Passport Potash, Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) has entered into an option agreement with Ringbolt Ventures Ltd. (TSX VENTURE:RBV) allowing Passport to acquire a 100 percent interest in Ringbolt’s Holbrook Basin potash property in Arizona and to conduct a $2.25 million (U.S.) exploration program on the optioned property.
Ringbolt’s property consists of 15,994.32 acres of mineral exploration permits on land managed by the Arizona State Land Department. The property overlies a portion of what appears to be the thickest part of the deposits in the Holbrook Basin.
The option agreement has the potential to expand Passport’s foothold to include land in the eastern portions of the Holbrook Basin, increasing Passport’s land holdings to more than 86,000 acres, or 134 square miles. This comprises 22% of the estimated 600 square miles of potash deposits in the Holbrook Basin. This percentage increases if the portion of the potash deposits underlying the Petrified Forest National Park is excluded. For a visual of our entire land package click here: http://www.passportpotash.com/pdf/map.pdf.
The option agreement allows Passport to exercise the option to earn a 90 percent interest in the property by making cash payments in the total of $1.0 million (U.S.) over a three-year period, incurring a total of $2.25 million (U.S.) in work expenditures on the property over three years and issuing four million common shares to the optionors over a three-year period. Upon fulfilling the terms of the option, Passport has the right to purchase the remaining 10 percent interest for $5.0 million (U.S.). The optionors are entitled to a 1 percent gross overriding royalty on the production from the property. The option agreement is subject to the approval of the exchange.
Passport president Joshua Bleak stated, “Passport is very pleased to partner with Ringbolt in combining land holdings and augmenting its exploration activities in the Holbrook Basin. We view this partnership as a significant step towards achieving a critical mass for production in the Holbrook Basin.”
Passport is also pleased to report that it has entered into an agreement with Quam (H.K.) Limited of Hong Kong for the provision of investor relations services. The agreement is subject to the approval of the Exchange.
About the Holbrook Potash Project
Passport Potash Inc. is a TSX-listed resource company engaged in the exploration and development of advanced potash properties. Passport has acquired a strategic position in the Holbrook Basin with land holdings encompassing over 86,000 acres. In addition, Passport has a cooperative agreement with the Hopi Tribe, allowing the company to access and conduct certain exploration activities on an additional 12,853 acres of privately held Hopi land (not reservation) while allowing the tribe to share in the study results. For more information regarding the Holbrook Basin, see http://www.azgs.az.gov/arizona_geology/Summer%2008.pdf.
On behalf of the Board of Directors
PASSPORT POTASH INC.
Joshua Bleak, President
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company’s annual filings that are available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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