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Panorama Resources Ltd. and Ethiopian Potash Corp. announce the closing of Ethiopian Potash Corp.’s private placement financing and filing of a NI 43-101 technical report in advance of the Panorama shareholder meeting on February 25, 2011
Panorama Resources Ltd. and Ethiopian Potash Corp. announce the closing of Ethiopian Potash Corp.’s private placement financing and filing of a NI 43-101 technical report in advance of the Panorama shareholder meeting on February 25, 2011.
About this update from Agriminco Corp
[{"type":"text","content":"February 10, 2011 - Panorama Resources Ltd. (TSXV:PRA) (“Panorama” or the “Company”), and Ethiopian Potash Corp. (“EPC”) are pleased to announce the closing of EPC’s private placement of subscription receipts (the “EPC Private Placement”).EPC Private PlacementAs previously announced in the Company’s press releases dated October 26, 2010 and January 28, 2011, the EPC Private Placement is a condition to the completion of the proposed amalgamation of Panorama and EPC (the “Amalgamation”). The Amalgamation and related transactions remain subject to the receipt of all applicable shareholder and regulatory approvals.The EPC Private Placement was a brokered private placement of subscription receipts of EPC for gross proceeds of $11 million to EPC. Each subscription receipt was sold at a price of $0.50 and is convertible into one unit of EPC (“EPC Unit”), as detailed below.Gross proceeds from the EPC Private Placement have been deposited in escrow and will be held by the subscription receipt agent until the satisfaction of certain release conditions (“Escrow Release Conditions”), including the receipt of all regulatory approvals required to complete the Amalgamation.Following the satisfaction or waiver of the Escrow Release Conditions, each EPC subscription receipt will entitle the holder thereof to receive, automatically and without payment of additional consideration, one EPC Unit. Each EPC Unit will be comprised of one EPC common share (“EPC Common Share”) and one EPC common share purchase warrant (“EPC Warrant”) entitling the holder thereof to acquire one EPC Common Share at an exercise price of $0.75 for a period of 18 months from the date of the satisfaction of the Escrow Release Conditions.Use of ProceedsThe net proceeds of the EPC Private Placement will be used to aggressively develop and fast- track to production the Danakil Potash Permits in Ethiopia. EPC, as the resulting issuer of the Amalgamation, anticipates that it will commence drilling with two rigs in March, 2011, focusing up-dip of the Musley deposit in the southwest corner of the Property, as well as on the eastern side of the Property (where potash was historically mined at Colluli). Other participants in the Danakil potash belt have recently relea...