IC Potash Corp. (TSX: ICP; OTCQX: ICPTF) (“ICP” or the “Company”)
is pleased to announce a non-brokered offering of up to 18,333,333
units of the Company (the “Units”) at a price of $0.045 per Unit
for aggregate gross proceeds of up to $825,000 (the “Offering”).
Each Unit will consist of (i) one common share of the Company (a “Common
Share”); and (ii) one common share purchase warrant (a “Warrant”).
Each Warrant will entitle the holder to acquire one additional Common
Share at an exercise price of $0.08 for a period of 12 months from the
Closing Date (as defined below), provided that if, at any time after the
date which is four months and one day following the Closing Date, the
volume weighted average price of the Common Shares on the Toronto Stock
Exchange (the “TSX”) is equal to or exceeds $0.18 for 20
consecutive trading days, the Company may accelerate the expiry date of
the Warrants, in which event the Warrants will expire upon the date (the
“Accelerated Expiry Date”) which is 30 days following the
dissemination of a press release by the Company announcing the
Accelerated Expiry Date.
ICP intends to use the net proceeds for working capital purposes. The
Offering is expected to close on or about May 19, 2016 (the “Closing
Date”) and is subject to customary closing conditions, including the
approval of the TSX. Securities issued under the Offering will be
subject to a hold period, which will expire four months and one day from
the Closing Date. Insiders of the Company may acquire up to 444,445
Units pursuant to the Offering.
The Company may pay finder’s fees to certain qualified eligible persons
assisting the Company in the Offering in an amount equal to 7% of the
gross proceeds raised by such finders. The Company may also issue such
number of broker warrants (“Broker Warrants”) to qualified
eligible persons as is equal to 7% of the aggregate number of Units sold
by such finders, each such Broker Warrant entitling the holder to
acquire one Common Share for a period of 12 months at an exercise price
equal to $0.045.
Randy Foote, President and CEO of ICP, stated, “We appreciate the
support of our existing shareholders and consider this a vote of
confidence in our project. These funds will support the Company while
moving the project forward.”
About IC Potash Corp.
ICP has demonstrated a low-cost method to produce sulfate of potash
(“SOP”) from its Ochoa polyhalite deposit in southeast New Mexico and
seeks to become a primary, long-term producer of SOP. SOP is a
non-chloride potash fertilizer widely used in the horticultural industry
and for high value crops, such as fruits, vegetables, tobacco and
potatoes. It is applicable for soils where there is substantial
agricultural activity, high soil salinity, and in arid regions. The
Ochoa Project has access to excellent local labor resources, low-cost
electricity and natural gas, an approved non-potable water source, rail
lines, and the Port of Galveston, Texas. ICP’s land holdings consist of
approximately 98,500 acres of federal preference right potassium leases,
federal subsurface potassium prospecting permits and State of New Mexico
potassium mining leases. For more information, please visit www.icpotash.com.
Forward-Looking Statements
Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and unknown
risks and uncertainties and other factors which may cause the actual
results, performance or achievements of ICP to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Forward-looking statements
include statements that use forward-looking terminology such as “may”,
“will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or
the negative thereof or other variations thereof or comparable
terminology. Such forward-looking statements include, without
limitation, the closing of the Offering, the use of proceeds from the
Offering, insider participation in the Offering and other statements
that are not historical facts. 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, the uncertainty of obtaining additional financing, and risks
associated with turning reserves into product. 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.
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