Passport Potash Signs Letter of Intent for Holbrook Basin Potash
VANCOUVER, BRITISH COLUMBIA-(Marketwire - Oct. 27, 2010) - Passport Potash Inc. (TSX VENTURE:PPI) (“Passport”) is pleased to announce that it has signed a Letter of Intent (“LOI”) with the Karlsson Group, Inc. (“Karlsson”), a corporation which holds and controls over 45 sections covering nearly 29,000 undeveloped acres of state and private lands in the Holbrook Basin to explore for and develop potash. Under the terms of the LOI, Passport shall exclusively negotiate with Karlsson for a 30 day period to jointly develop a Definitive Cooperative Agreement (“DCA”) which shall detail the exploration and development of potash acreage. Also under the terms of the LOI, Passport and Karlsson shall jointly develop a plan of operation to conduct seismic surveys, land acquisition, drill core holes, and ultimately prepare a NI 43-101 compliant resource. Finally, Karlsson will escrow $100,000 which funds, upon the execution of a DCA, shall be applied towards leasehold expenses.
Steve Butrenchuk, President of Passport, commented, “We look forward to a partnership between Passport and Karlsson whereby we’ll jointly control approximately 122 sections of state and private lands which cover almost 79,000 gross undeveloped acres. Karlsson has immediate access to funds to perform the initial exploration activity which includes the NI 43-101 resource calculation, permitting, and mine planning. Combined, we currently have permits to drill 19 core holes.”
Anders Karlsson commented, “The Karlsson Group is also finalizing a partnership which will bring significant technical and financial resources to the Holbrook Basin potash project. The creation of this partnership, combined with Passport’s assets and in-depth knowledge of the basin, represent key milestones in the development of potash in the Holbrook Basin.”
On behalf of the Board of Directors,
PASSPORT POTASH INC.
Stephen B. Butrenchuk, President
Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, constitute “forward-looking statements” and include any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company’s planned drilling programs and strategy, plans or future financial or operating performance and other statements that express management’s expectations or estimates of future performance.
Forward-looking statements are generally identifiable by the use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company’s projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as those factors discussed in the sections relating to risk factors of the Company set out in the Company’s MD&A filed on SEDAR.
There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.
For more information, please contact
Passport Potash Inc.
Stephen B. Butrenchuk
President
(604) 687-0300
(604) 687-0151 (FAX)