TORONTO, April 12, 2012 /PRNewswire/ - IC Potash Corp.
("ICP" or the "Company") (TSX: ICP) (OTCQX: ICPTF) is pleased to
announce that the previously announced investment by Yara
International ASA ("Yara"), through a wholly owned subsidiary, of
approximately C$40 million in ICP at
a price of $1.32 per common share has
been completed. As previously announced, ICP and Yara have also
entered into a committed off-take agreement for the purchase of 30%
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.
Mr. Sidney
Himmel, President and CEO of ICP, comments: "The
closing of this partnership with Yara is a tremendous step forward
for ICP. Yara represents an ideal partner for the Company with the
financial resources and knowledge of international fertilizer
markets required to advance the Ochoa project into production. We
look forward to a prosperous relationship with Yara and working
together to build the Ochoa project into a world-class Sulphate of
Potash production and distribution facility."
Mr. Jørgen Ole
Haslestad, President and CEO of Yara, comments: "We are
delighted to finalize this investment and off-take with ICP.
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
Sulphate of Potash and we look forward to working with ICP to bring
the Ochoa project into production."
Strategic Investment Terms
In connection with the strategic investment, ICP
issued to Yara 30,129,870 common shares at a price of $1.32 per common share for total gross proceeds
of C$39,771,428 resulting in Yara
owning 19.9% of the issued and outstanding common shares of ICP on
a non-diluted basis. The issue price represents a 41% 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. The investment was conducted as a
non-brokered private placement.
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.
Subject to certain exceptions, Yara is restricted from transferring
securities of ICP until the earlier of April
12, 2014 and the date on which ICP has secured all financing
to complete the construction of the Ochoa project and such
construction has commenced.
Off-Take Agreement Terms
Under the committed off-take agreement, ICP will
sell to Yara and Yara will buy from ICP 30% of all products
produced by the Ochoa project annually. The term will begin upon
the commencement of commercial production for a period of 15 years
and will automatically extend every five years thereafter unless
either party elects not to extend. All products will be sold
to Yara based on market prices.
About IC Potash Corp.
ICP intends to become a primary producer of
Sulphate of Potash ("SOP") and Sulphate of Potash Magnesia ("SOPM")
by mining its 100%-owned Polyhalite Ochoa property in New Mexico, a highly advanced mineral deposit
containing proven and probable reserves of more than 400 million
tons of ore within the proposed mine plan. SOP is a non-chloride
based potash fertilizer that sells at a substantial premium over
the price of regular potash known as Muriate of Potash ("MOP"). MOP
contains chloride and is therefore not the optimal potash for
numerous crops and in situations where there is high soil salinity.
ICP is focused on becoming the lowest cost producer of SOP in the
world. The SOP market is towards six million tonnes per year. SOP
is a significant fertilizer in the fruit, vegetable, tobacco,
potato, and horticultural industries. SOP is also applicable in
soils where there is substantial agricultural activity with
varieties of crops and therefore where the salinity of the soil has
increased, and in areas where soils are dry. SOPM is a highly
desirable potash product for soils with magnesium deficiency,
including those found in Europe
and Southeast Asia and has a total
global market size of over one million tonnes. ICP's Ochoa property
consists of over 100,000 acres of federal subsurface potassium
prospecting permits and State of New
Mexico Potassium mining leases.
About Yara International ASA
Yara delivers solutions for sustainable
agriculture and the environment. Our fertilizers and crop nutrition
programs help produce the food required for the growing world
population. Our industrial products and solutions reduce emissions,
improve air quality and support safe and efficient operations.
Founded in Norway in 1905, Yara
has a worldwide presence with sales to 150 countries. Safety is
always our top priority.
www.yara.com
Certain information set forth in this news
release may contain forward-looking statements that involve
substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of ICP,
including, but not limited to, risks associated with mineral
exploration and mining activities, the impact of general economic
conditions, industry conditions, dependence upon regulatory
approvals, and the uncertainty of obtaining additional financing.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
SOURCE IC Potash Corp.
