Passport Potash, Inc. (PPRTF: OTC Link) | Joint Exploration Agreement with HNZ Potash LLC

Aug 03, 2012

OTC Disclosure & News Service

Vancouver, BC, Canada –

                                            608,1199 West Pender Street

Vancouver, BC  V6E 2R1

Tel:  (604) 687-0300  Fax: (604) 687-0151

www.passportpotash.com

 

PASSPORT POTASH INC.

(TSX.V- PPI)

 

 

PassportPotash Enters Into Joint Exploration Agreement with HNZ Potash LLC

 

Vancouver, B.C. - August2, 2012.  Passport Potash, Inc. (“Passport“ or the “Company“) (PPI: TSX.V,OTCQX:PPRTF) is pleased to announce that it has entered into an agreement withHNZ Potash, LLC (“HNZ“) (jointly the “Parties“) to jointly explore andpotentially develop twenty-one (21) permitted parcels in which Passport holdsArizona State Land Department exploration permits and which are located on thesouthernmost area of its landholdings (the “Permit Property“).  The Permit Property iswithin HNZ‘s private property andhas not been previously explored by Passport. Under the terms of the Joint Exploration Agreement (the “Agreement“) HNZ has agreed to pay Passport 50% of certain costs previouslyincurred by Passport with respect to the Permit Property, and Passport willassign a 50% interest in the Permit Property to HNZ.

 

Thepurposes of the Agreement are to conduct exploration and to evaluate thepotential for development and mining of the Permit Property.  If justified by the exploration activities,the Parties upon mutual agreement will form an entity to seek a mining lease tojointly engage in development and mining of the Permit Property.  During the currency of the Agreement theParties will equally share the costs for maintaining the Permit Property ingood standing with the Land Department. The Parties may, either alone or jointly, conduct exploration of any orall of the Permit Property pursuant to one or more Plans of Exploration.

 

Otherprovisions in the Agreement include the following:

 

·      The Parties will provideto each other existing exploration data from their Holbrook Basin potashexploration activities.  The dataprovided by each Party may be used by the other Party to update their existingor future resource reports or any other future reports.

·

·      The Parties will provideeach other vehicular access across existing paved and unpaved roads on propertycontrolled by the Party.

·

·      The Parties haveestablished an Area of Mutual Interest and have agreed to jointly pursue opportunitieswithin this Area.

 

“We look forward to the opportunity to jointly explore theseproperties with HNZ Potash“, commented Joshua Bleak, Passport‘s President and CEO.  “We anticipate a long and productive relationship with HNZ and seethis as a positive step for both companies and the development of potashresources in the Holbrook Basin.“

 

Toview a map of the companies holdings as well as the JV sections click here

 

About Passport Potash, Inc.

Passport Potash Inc. is a publiclytraded corporation engaged in the exploration and development of advancedpotash properties with its major focus on a previously explored potash propertyin Arizona. Passport has acquired a strategic position in the Holbrook Basinwith land holdings encompassing over 121,000 acres. For more informationregarding the Holbrook Basin, please visit Investor Central

 

About HNZ Potash, LLC

 

HNZ Potash, LLC is an affiliate ofHunt Consolidated, Inc., which is a part of the Hunt family of companiesdirected by Ray L. Hunt.

 

On behalf of the Board of Directorsof Passport Potash Inc.

Joshua Bleak, President

 

Forward-Looking Statement

This news release includes certain statements that may bedeemed “forward-looking statements”. Forward-lookinginformation includes, but is not limited to: statements with respect to the effect and estimated timeline of thedrilling and assay results on the Company; the estimation of mineral reserves and mineral resources; the timing andamount of estimated future exploration; costs of exploration; capitalexpenditures; success of exploration activities; permitting time lines andpermitting ; government regulation of mining operations; potential futureexpansion of the PFNP; environmental risks; unanticipated reclamation expenses;and title disputes or claims. Generally, forward-looking information can beidentified by the use of forward-looking terminology such as “plans”,”expects” or “does not expect”, “is expected”,”budget”, “scheduled”, “estimates”,”forecasts”, “intends”, “anticipates” or”does not anticipate”, or “believes”, or variations of suchwords and phrases or statements that certain actions, events or results”may”, “could”, “would”, “might” or”will be taken”, “occur” or “be achieved”.  All statements in this release, other thanstatements of historical facts, including the likelihood of commercial miningand possible future financings are forward-looking statements. Although theCompany believes the expectations expressed in such forward-looking statementsare based on reasonable assumptions, such statements are not guarantees offuture performance and actual results or developments may differ materiallyfrom those in the forward-looking statements. Factors that could cause actualresults to differ materially from those in forward-looking statements include:unsuccessful exploration results; changes in metals prices; changes in theavailability of funding for mineral exploration; unanticipated changes in keymanagement personnel and general economic conditions. Mining is an inherentlyrisky business. Accordingly the actual events may differ materially from thoseprojected in the forward-looking statements. For more information on theCompany and the risks and challenges of its business, investors should reviewthe Company’s annual filings that are available at www.sedar.com.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICESPROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Corporate Communication

Peter J.Kletas

866-999-6251-TollFree

peter@passportpotash.com

and/or

CliveMostert

780-920-5044

cmostert@passportpotash.com

www.passportpotash.com

 

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.

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