/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION TO U.S. NEWS
TORONTO, Dec. 5, 2012 /CNW/ - Potash Ridge Corporation ("Potash Ridge"
or the "Corporation") is pleased to announce the successful closing of
its initial public offering (the "Offering") of its common shares (the
"Shares"). Potash Ridge raised $20 million in aggregate including a
concurrent private placement entered into with Sprott Resource
Potash Ridge's shares are now trading on the Toronto Stock Exchange
under the symbol "PRK".
The majority of the proceeds will be used by the Corporation to further
develop its Blawn Mountain Sulphate of Potash Project located in Utah.
The next major milestone is expected to be the completion of a
prefeasibility study and issuance of an updated National Instrument
43-101 technical report expected in Q2 2013.
In connection with the Offering, Potash Ridge issued 14,944,746 Shares
at a price of $1.00 per Share (the "Offering Price") for gross proceeds
of $14,944,746. The Offering is being made through a syndicate of
underwriters co-led by National Bank Financial Inc. and Clarus
Securities Inc. and including GMP Securities L.P., Scotia Capital Inc.,
Cormark Securities Inc. and Dundee Securities Ltd. (collectively, the
The Underwriters have been granted an over-allotment option, exercisable
in whole or in part for a period of 30 days from the date of the
closing of the Offering, to purchase up to an additional 15% of the
Shares issued at the closing of the Offering at the Offering Price. If
the over-allotment option is exercised in full, gross proceeds of the
Offering will increase to approximately $17.2 million.
Concurrent with the closing of the Offering, the Corporation issued
5,055,254 units to SRP for gross proceeds of $5,055,254, on a private
placement basis. Each unit consists of one non-voting share in the
capital of the Corporation (the "Non-Voting Shares") and one warrant to
acquire one Non-Voting Share, exercisable at a price equal to the
Offering Price, for a period of two years following the date hereof.
The Non-Voting Shares are convertible into Shares on a one-for-one
basis under certain circumstances, however the terms of the Non-Voting
Shares do not allow SRP to own more than 19.9% of the Shares upon
The Corporation has obtained shareholder approval to amend the articles
of the Corporation, to create the Non-Voting Shares. A copy of the
articles of amendment is available on the Corporation's profile on
SEDAR at www.sedar.com.
The Shares have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered or
sold in the United States without registration or an applicable
exemption from the registration requirements of that Act. This news
release does not constitute an offer for sale of these securities in
the United States of America.
About Potash Ridge
Potash Ridge is a Canadian based mining Company with a unique
opportunity to develop a premium sulphate of potash (SOP) deposit into
long-term mining production.
The Company's Blawn Mountain project consists of four areas of surface
mineable alunite mineralization. Alunite is a sulfate mineral ore rich
in both SOP and alumina. Located in a mining friendly jurisdiction with
established infrastructure nearby, the project covers approximately
11,550 acres of state-owned land in Utah and has a known permitting
process. Extensive development was completed in the 1970s including a
mine plan, feasibility study and 3-year pilot plant operation.
Potash Ridge has a highly qualified and proven management team in place
with significant financial, project management and operational
experience and the ability to take projects into production.
This press release may contain forward-looking information within the
meaning of applicable securities legislation, which reflects the
Corporation's current expectations regarding future events.
Forward-looking information including statements with respect to the
Corporation's proposed use of the Offering and private placement
proceeds, the development of the premium SOP deposit and the taking of
deposit into production, is based on a number of assumptions and is
subject to a number of risks and uncertainties, many of which are
beyond the Corporation's control, that could cause actual results and
events to differ materially from those that are disclosed in or implied
by such forward-looking information. Such risks and uncertainties
include, but are not limited to, failure to complete the Offering, and
the factors discussed under "A Cautionary Note Regarding Forward
Looking Statements" and "Risk Factors" in the final prospectus of the
Corporation dated November 27, 2012. The Corporation does not undertake
any obligation to update such forward-looking information, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
SOURCE: Potash Ridge Corporation
For further information:
Manager of Investor Relations
P: 416.362.8640 ext. 101