April 12, 2012
TORONTO, ONTARIO, April 12, 2012 /CNW/ - IC Potash Corp.
("ICP" or the "Company") (TSX: ICP;
OTCQX: ICPTF) is pleased to announce that the previously
announced investment by Yara International ASA
("Yara"), through a wholly owned subsidiary, of
approximately C$40 million in ICP at a price of $1.32 per
common share has been completed. As previously announced,
ICP and Yara have also entered into a committed off-take
agreement for the purchase of 30% of all products produced
by ICP's Ochoa project in New Mexico for a period of 15
years and have agreed to discuss the possibility of
establishing a jointly held entity for the purpose of
marketing products produced by the Ochoa project.
Mr. Sidney Himmel, President and CEO of ICP, comments:
"The closing of this partnership with Yara is a
tremendous step forward for ICP. Yara represents an ideal
partner for the Company with the financial resources
and knowledge of international fertilizer markets required
to advance the Ochoa project into production. We look
forward to a prosperous relationship with Yara and working
together to build the Ochoa project into a world-class
Sulphate of Potash production and distribution
Mr. Jørgen Ole Haslestad, President and CEO of Yara,
comments: "We are delighted to finalize this
investment and off-take with ICP. Through this partnership,
we have further positioned ourselves with a long-term
upstream exposure to premium potash. We believe the
North American market represents a significant opportunity
for Sulphate of Potash and we look forward to working with
ICP to bring the Ochoa project into production."
Strategic Investment Terms
In connection with the strategic investment, ICP issued to
Yara 30,129,870 common shares at a price of $1.32 per
common share for total gross proceeds of C$39,771,428
resulting in Yara owning 19.9% of the issued and
outstanding common shares of ICP on a non-diluted basis.
The issue price represents a 41% premium over the 20
day volume weighted average price of ICP's common
shares traded on the Toronto Stock Exchange as of the
closing on March 30, 2012, the last completed trading day
prior to the announcement of the transaction. Following
completion of the investment, ICP has 151,406,384 common
shares issued and outstanding. The investment was conducted
as a non-brokered private placement.
Yara has the right to appoint one representative to
ICP's board of directors and the right to
participate pro rata in all future equity or equity linked
issuances by ICP. Subject to certain exceptions, Yara is
restricted from transferring securities of ICP until the
earlier of April 12, 2014 and the date on which ICP has
secured all financing to complete the construction of
the Ochoa project and such construction has commenced.
Off-Take Agreement Terms
Under the committed off-take agreement, ICP will sell to
Yara and Yara will buy from ICP 30% of all products
produced by the Ochoa project annually.The term will begin
upon the commencement of commercial production for a period
of 15 years and will automatically extend every five years
thereafter unless either party elects not to extend.
All products will be sold to Yara based on market prices.
About IC Potash Corp.
ICP intends to become a primary producer of Sulphate of
Potash ("SOP") and Sulphate of Potash Magnesia
("SOPM") by mining its 100%-owned Polyhalite
Ochoa property in New Mexico, a highly advanced mineral
deposit containing proven and probable reserves of more
than 400 million tons of ore within the proposed mine plan.
SOP is a non-chloride based potash fertilizer that sells at
a substantial premium over the price of regular potash
known as Muriate of Potash ("MOP"). MOP contains
chloride and is therefore not the optimal potash for
numerous crops and in situations where there is high soil
salinity. ICP is focused on becoming the lowest cost
producer of SOP in the world. The SOP market is
towards six million tonnes per year. SOP is a significant
fertilizer in the fruit, vegetable, tobacco, potato, and
SOP is also applicable in soils where there is substantial
agricultural activity with varieties of crops and
therefore where the salinity of the soil has increased, and
in areas where soils are dry. SOPM is a highly desirable
potash product for soils with magnesium deficiency,
including those found in Europe and Southeast Asia and has
a total global market size of over one million tonnes.
ICP's Ochoa property consists of over 100,000 acres of
federal subsurface potassium prospecting permits and State
of New Mexico Potassium mining leases.
About Yara International ASA
Yara delivers solutions for sustainable agriculture and the
environment. Our fertilizers and crop nutrition programs
help produce the food required for the growing world
population. Our industrial products and solutions reduce
emissions, improve air quality and support safe and
efficient operations. Founded in Norway in 1905, Yara has a
worldwide presence with sales to 150 countries. Safety is
always our top priority.
For further information, please visit www.icpotash.com or contact
Sidney Himmel at +1 (416) 624-3781 or +1 (575) 993-2758.
Certain information set forth in this news release may
contain forward-looking statements that involve substantial
known and unknown risks and uncertainties. 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,
and the uncertainty of obtaining additional financing.
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.