Pacific Potash Corporation’s Merger Partner Announces LOI for the Sale of up to 50,000 Tonnes of Calcium Sulphate to Paraguay
(via Thenewswire.ca)
VANCOUVER, BRITISH COLUMBIA, October 9th, 2012 - Pacific Potash Corp., (TSX-V: PP; OTCQX: PPOTF; FSE: P9P, "Pacific Potash", "The Company") is pleased to announce that Pan American (CNSX: PAF, "Pan American") has entered into a non-binding letter of intent (the "LOI") with Agro Industrial Campos Nuevos S.A. ("Agro Industrial"). Under the terms of the LOI, Pan American will sell Agro Industrial between 30,000 and 50,000 tonnes of Calcium Sulphate (Agricultural Gypsum) over a 12 month period at a mutually agreed price per tonne.
Randy Wright, President and CEO of Pan American reported "This sales LOI is an extremely important milestone for Pan American. It not only represents our first international sales agreement, but also demonstrates the massive potential international market for our product. The testing that Agro did validates the quality of our product and we expect to establish many more strategic sales arrangements with international partners"
"We at Agro Industrial are very pleased with the signing of this LOI with Pan American. We have long been searching for a partner that can provide a high quality product in a professional and timely manner. We feel we have found that partner in Pan American" reported Nivaldo Ouriques, President of Argo Industrial.
Details on the acquisition can be found in the Pan American news release dated October 9th , 2012. The Company and Pan American have signed an Arrangement Agreement in respect of a proposed business combination of the two companies, details of which are set out in the Company's news release dated Septebmer 21st, 2012.
About Pacific Potash Corporation
Pacific Potash Corporation trades on the TSX Venture Exchange under the symbol: PP, as well on the OTCQX under the symbol: PPOTF and on the Frankfurt Stock Exchange under P9P. Pacific Potash is engaged in the exploration and development of the Provost Potash Property and the surrounding potash claims targeting the prolific Prairie Evaporite Formation, which is host to multiple conventional and solution potash mines. The Company also has an option to acquire an 80% interest in Western Potash Corporation's (TSX: WPX) Amazonas Basin claims.
About Pan American
Pan American is a Canadian company dedicated to providing fertilizer to a growing global market. The company is focused on the extraction of a specific type of fertilizer called calcium sulphate (also referred to as "Agricultural Gypsum"). To ensure long term development and increase shareholder value, Pan American currently plans to significantly expand its current operational objectives while expanding its asset base by acquiring additional calcium sulphate and other fertilizer related assets.
When used as a fertilizer and as a soil remediator, calcium sulphate is a soft sulfate mineral composed of calcium sulfate dihydrate which is extremely rich in sulphur and calcium. When dissolved in water, the mineral becomes calcium and sulphate sulphur ions, both of which are required nutrients for plants. Calcium sulphate plays a vital role in establishing and maintaining good chemical balance in soil, water and plants, specifically with healthy root development. Ultimately, calcium sulphate increases overall crop quality and yields. www.PAFertilzer.com.
