Pan American Fertilizer Corp. (CNSX: PAF) Announces Closing Of 1st Tranche Private Placement
VANCOUVER, BRITISH COLUMBIA, December 3, 2012 - Pan American Fertilizer Corp. (CNSX: PAF) (“Pan American” or the "Company") announces that it has closed the first tranche of a previously announced brokered private placement (the “Offering”) and issued 2,100,000 units (“Units”) at a price of $0.25 per Unit for gross proceeds of $525,000. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional Share at a price of $0.40 per Share at any time until November 30, 2017.
In connection with the Offering, the Company has paid Jordan Capital Markets Inc. a cash commission of $42,000 and issued 168,000 non-transferable agent warrants exercisable at $0.40 per share until November 30, 2017.
The net proceeds from the Offering are to be used for working capital purposes. All securities issued in connection with the Offering are subject to a four month statutory hold period expiring on March 31, 2013.
The Company also announces that Mr. Tariq Malik has resigned as Executive Vice-President and Chief Operating Officer effective November 30, 2012.
About Pan American Fertilizer Corp.
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.
On behalf of the board of directors of Pan American Fertilizer Corp.
President and CEO
FOR MORE INFORMATION, PLEASE CONTACT: