Pacific Potash Corporation Closes First Tranche of Private Placement

Pacific Potash Corporation (TSXV:PP, OTCQX:PPOTF) announced that they have closed the first tranche of a private placement consisting of 15,625,000 units for gross proceeds of $1,250,000.

As quoted in the press release:

The second tranche of the financing involves a subscription for 12,500,000 units ($1,000,000) by Sino-Canada Natural Resources Fund I (“Sino-Canada Fund”). Upon closing of its subscription, Sino-Canada Fund will hold approximately 18.1% of the outstanding shares of Pacific Potash, on an undiluted basis. Pursuant to TSXV policies, the change of control resulting from Sino-Canada Fund’s subscription is subject to shareholder approval. The Company has set a shareholder meeting date for May 31, 2013 in order to receive approval for the change of control. In addition, upon closing, Sino-Canada Fund will have the right to appoint a nominee to be Co-Chairman and a Director of Pacific Potash Corp.

Pacific Potash’s Executive Chairman and Director, Balbir Joha, said:

We are pleased to announce the first closing of the financing and look forward to welcoming Sino- Canada Natural Resources Fund as the new control entity, pending shareholder approval. We feel that Sino-Canada Fund and their nominee to the Board of Directors will bring significant experience and a solid partnership that will benefit Pacific Potash shareholders.

To view the whole press release, click here.