IC Potash (TSX:ICP) (OTCQB:ICPTF) (“IC Potash”, ICP or the “Company”) and Cartesian Capital Group, LLC (“Cartesian”) announced today the entrance into a binding letter of intent (the “LOI”) regarding the indirect ownership of ICP in Intercontinental Potash Corp. (USA) (“ICPUSA”). ICPUSA (in which ICP holds an interest through common shares) fully owns the Ochoa Sulphate of Potash project.
Under the LOI, ICPUSA will, subject to the shareholder vote of the shareholders of ICP, redeem those of its common shares that are indirectly owned by ICP. This transaction represents the sale by ICP to Cartesian affiliates of ICP’s indirect ownership in the Ochoa Project.
Mehdi Azodi, the President and Chief Executive Officer of ICP Canada stated:
Given the market capitalization of ICP, and the bearish current perspective of public investors in the Canadian junior potash space for development companies which require substantial capital, it has not been possible for us to continue to maintain the Company’s financial interest in the project by funding our share of capital requirements.
Therefore, the Company has determined that the sale of its interest in the project, at an estimated value of USD $15 million to the Cartesian affiliates, is the best option to maintain or increase shareholder value under present circumstances.”