Passport Potash Inc. (TSXV: PPI) (OTCQX: PPRTF) has announced a non-brokered private placement, consisting of up to $2,500,000 convertible debentures, with a 15% interest rate.
The debentures are convertible into common shares, at a price of US$0.19 for a period of one year. Each $1,000 debenture also includes 5,000 common share purchase warrants, which are also exercisable at a price of $0.19 per share.
The company had previously announced, in November 2012, a non-brokered, fully subscribed private placement for approximately 69 million units at a price of $0.18, with each unit consisting of one common share and one-half of a share purchase warrant, with each full warrant exercisable at $0.25 for 5 years. Some of the subscribers to the earlier private placement have opted to participate in the current debenture private placement rather than the unit offering. Proceeds will be used to complete a Preliminary Economic Assessment, which the company anticipates publishing at the end of the first quarter of 2013, as well as general working capital.