Another deal for "da boyz" ...
Potash One Announces $10 Million Flow-Through Financing
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 23, 2008) - Potash One Inc. ("Potash One" or the "Company") (TSX:KCL) is pleased to announce a non-brokered private placement of flow-through shares to raise up to $10 million. Each flow-through share will be issued at $1.25 per share ("FT Share") for a total issuance of up to 8 million FT Shares (the "Placement").
The flow-through funds raised will be used for general exploration expenditures on the Company's Legacy Project, which will constitute Canadian exploration expenditures (as defined in the Income Tax Act) and will be renounced to the investors.
The Company is paying certain finder's a 5% finder's fee in cash and 5% in finder's warrants. Each finder's warrant will entitle the holder to purchase one non-flow-through common share at a price of $1.50 for a period of 12 months following the closing of the financing.
All securities issued in the Offering will have a hold period in Canada a minimum of four months from the closing of the financing.
The Placement is subject to certain conditions including, but not limited to the receipt of all necessary regulatory approvals.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer
About Potash One Inc.
Potash One Inc. is a TSX listed Canadian resource company engaged in the exploration and development of advanced solution mine amenable potash properties. The Company owns 100% of a 97,240 acre Potash Subsurface Exploration Permit in Saskatchewan, Canada (the "Legacy Project"). The Legacy Project is adjacent to the largest producing solution potash mine in the world and has NI 43-101 Inferred Mineral Resources of 391.5 million tonnes of K2O and Indicated Mineral Resources of 40.8 million tonnes of K2O.
This press release does not constitute an offer to sell, or a solicitation of an offer to sell, any of the foregoing securities in the United States. None of the foregoing securities have been and, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
FOR FURTHER INFORMATION PLEASE CONTACT:
Potash One Inc.
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
(604) 331-4431
(604) 408-4799 (FAX)
Email: info@potash1.com
Website: www.potash1.com
