Passport Potash, Inc. (PPRTF: OTC Link) | Convertible Debenture Financing

Convertible Debenture Financing

Jan 21, 2013

OTC Disclosure News Service

Vancouver, BC, Canada

PASSPORT POTASH INC.
(TSX.V – PPI)

 

Passport Potash Announces
Convertible Debenture

VANCOUVER, BRITISH
COLUMBIA–(Marketwire – January 21, 2013) – Passport Potash, Inc. (TSX
VENTURE:PPI)(OTCQX:PPRTF)(“Passport” or the “Company”) announces a non-brokered
private placement of convertible debentures for up to $2.5 million at an interest
rate of 15% (the “Offering”).  The
principal amount of the debentures is convertible into common stock of the
Company at the option of the subscriber, in whole or in part, at a price of
US$0.19 per share for a period of one year from the date of closing.  The private placement is subject to the
approval and consent of the TSX Venture Exchange (the “Exchange”).  Upon approval by the Exchange the subscriber
shall receive five warrants for each US$1.00 of principal amount tendered in
the Offering, entitling the holder to acquire one share for each warrant at an
exercise price of US$0.19 per share for a period of one year from the date of
issuance.

Finders fees in
accordance with TSX policy will be paid in connection with the financing.  The funds raised in the Offering will replace
some of the funds announced in the equity private placement announced by the
Company on November 15, 2012.  The
Company anticipates closing the private equity offering,
at a reduced amount, concurrently with the closing of the Offering.  The proceeds from the Offering will be used
for the Preliminary Economic Assessment which the Company anticipates
publishing at the end of first quarter 2013, and for general working capital.

About the Holbrook Potash Project

Passport Potash Inc. is a publicly traded
corporation engaged in the exploration and development of advanced potash
properties with its major focus on a previously explored potash property in
Arizona. Passport has acquired a strategic position in the Holbrook Basin with
land holdings encompassing over 121,000 acres.
Passport has
also entered into a joint exploration agreement with the Hopi Indian Tribe to
work toward developing approximately 13,000 acres of contiguous privately held
Hopi land.

On behalf of the Board of Directors

PASSPORT POTASH INC.

Joshua Bleak, President

This news release
includes certain statements that may be deemed “forward-looking
statements”. All statements in this release, other than statements of
historical facts, including the likelihood of commercial mining and possible
future financings are forward-looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those
in the forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include unsuccessful
exploration results, changes in metals prices, changes in the availability of
funding for mineral exploration, unanticipated changes in key management
personnel and general economic conditions. Mining is an inherently risky
business. Accordingly the actual events may differ materially from those
projected in the forward-looking statements. For more information on the
Company and the risks and challenges of its business, investors should review
the Company’s annual filings that are available at 
www.sedar.com.

Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.

Contact:

Passport Potash Inc.
Peter J. Kletas
Manager of Corporate Development
866-999-6251-Toll Free
peter@passportpotash.com


Passport Potash Inc.
Clive Mostert
Corporate Communications
780-920-5044
cmostert@passportpotash.com
www.passportpotash.com

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The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/PPRTF/news?id=57710

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