Potash North Resource signs deal to issue up to $30 million in private placement
June 9, 2008 - 17:56
By: THE CANADIAN PRESS
VANCOUVER - Potash North Resource Corp. (TSXV:PON) has signed a deal to issue up to $30 million in a private placement of units, the company said Monday.
The company said it has signed an agreement with a syndicate led by Canaccord Capital for an overnight-marketed private placement of $25 million in units, with an over-allotment option for an additional $5 million.
Potash North said each unit, which will be priced depending on the market, will include one share and one share purchase warrant.
Shares in Potash North have soared in recent days after receiving confirmation from the Saskatchewan Mines Branch of a two potash permits.
The company said it has been issued for potash permit application KP 417 covering approximately 38,800 hectares and another for application KP 416 covering 36,800 hectares.
Proceeds from the offering will be used to fund the exploration, evaluation and potential development of the potash permits in Saskatchewan and for general corporate purposes.
Shares in the company, which announced the private placement after the close of markets, closed up 84 cents or roughly 33 per cent at $3.39 on the TSX Venture Exchange.
Potash North currently has 26,645,002 shares outstanding.
