TORONTO, Nov. 5 /CNW/ - Trigon Uranium Corp. ("Trigon" or the "Company") (TSXV: TEL) announced today that the Company has completed its previously announced share consolidation effective October 30, 2009, pursuant to which it has consolidated all of the outstanding common shares of Trigon on the basis of one (1) "new" common share for every four (4) "old" common shares outstanding (the "Consolidation").
Prior to the Consolidation, there were 63,022,387 common shares of Trigon outstanding as of the close of business on October 29, 2009. Accordingly, following the Consolidation, the number of common shares of Trigon outstanding has been reduced to approximately 15,755,596 common shares. Trigon believes that the reduced number of common shares will have numerous benefits, including facilitating the proposed business combination between Trigon and Intercontinental Potash Corp. ("ICP") (the "RTO"), further details of which are set out in the management information circular of the Company dated as of September 28, 2009 (the "Circular") available on SEDAR at www.sedar.com. Consolidation remains subject to the final approval of the TSX Venture Exchange.
Trigon currently holds 15,000,000 shares of Intercontinental Potash Corp., which is equivalent to an ownership of approximately 36.8% of ICP. Trigon is now bidding for the shares of ICP which it does not own, approximately 25,800,001 shares. These ICP shares are being acquired on the basis of one consolidated Trigon share per one ICP share. It is anticipated that this acquisition will be completed on or around November 20, 2009, and that the trading in the shares of Trigon will commence shortly thereafter. Additionally, the Company has filed for and received a new CUSIP number for the Company's common stock which has changed to 89619C208. Further details of the acquisition are are set out in the management information circular of the Company dated as of September 28, 2009 (the "Circular") available on SEDAR at www.sedar.com.
As announced on September 30, 2009 the company is simultaneously intending to raise up to $5 million on a brokered basis, through Wellington West Capital Markets and Genuity Capital Markets. The financing is through the issuance of subscription receipts of ICP ("Subscription Receipts"), which Subscription Receipts will be exchanged for common shares of ICP immediately following the completion of the acquisition of ICP by Trigon. The Subscription Receipts will be priced in the context of the market.
About Intercontinental Potash Corp
ICP is developing its Ochoa New Mexico property with the primary purpose of using polyhalite as feedstock to produce Sulphate of Potash. Sulphate of Potash, "SOP" or Potassium Sulphate, is premium priced potash. The market for SOP is approximately 4 million tonnes per year. SOP is used as a significant alternative fertilizer to sylvite (Muriate of Potash or MOP) for agricultural products such as fruits, vegetables, tobacco, potatoes, and horticultural plants. SOP has low "salinity" compared to MOP, and therefore is also used in various saline soils in the world, which are found for example in China, India, the Mediterranean, and the United States. Polyhalite may also be developed as a slow release multi-nutrient fertilizer which contains the plant macronutrients Potassium, Sulphate, Magnesium and Calcium. ICP's Ochoa property consists of federal sub-surface potassium permits granted by the Bureau of Land Management ("BLM") covering more than 36,500 acres of land. All reclamation plans, environmental plans, and archeological work have been approved by BLM.
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 Trigon and ICP, including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation 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.
Completion of the RTO, the Consolidation, the financing noted above, and related matters are subject to a number of conditions and the receipt of all applicable regulatory approvals, including the final approval of the TSX Venture Exchange. The RTO cannot close until all required regulatory approvals are obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Circular, any information released or received with respect to the proposed transactions may not be accurate or complete and should not be relied upon. Trading in the securities of Trigon should be considered highly speculative. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
NEITHER THE 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.
SOURCE TRIGON URANIUM CORP.
For further information: For further information: please visit www.trigonuraniumcorp.com or www.intercontinentalpotash.com or contact: Intercontinental Potash Corp, Sidney Himmel, President and Chief Executive Officer, (416) 624-3781, firstname.lastname@example.org or Investor Relations, Joanna Longo, Vice President, The Equicom Group, (416) 815-0700 ext. 233, email@example.com