Passport Potash Inc.
, Stock Forum
) said that it has signed a further amendment to the option agreement with Twin Buttes Ranch, LLC, a family owned ranching operation, dated August 28, 2009, which was subsequently amended on Dec. 4, 2009 and again on Sept. 7, 2010, whereby the option to acquire the Twin Buttes Ranch has been extended to Jan. 6, 2016.
The Twin Buttes Ranch, which was one of Passport's first real property option purchase agreements, is comprised of approximately 28,000 acres of royalty free private land with intact surface, mineral and water rights.
According to the Passport Potash press release
, the amendment includes a $250,000 payment to be paid within thirty days of closing its next round of financing which is a minimum of $5.0 million dollars or Dec.1, 2013, whichever comes first.
This $250,000 payment is not an elective payment and became an obligation of Passport upon the signing of the amendment.
Furthermore, the amendment agreement includes a $250,000 payment to be paid by August 28, 2014 and a $250,000 payment to be paid by May 1, 2015.
In addition to the amendment to the option agreement, Passport and Twin Buttes have signed an amendment to the mining lease dated Dec. 4, 2009, whereby the term of the lease will end on the expiration or earlier termination of the option agreement, except in the event that Passport exercises its option in which event the term shall end on the closing date of the option agreement, and any subsequent amendments.
"This amendment will give us some necessary flexibility, and will allow us to focus our resources on meeting our planned timelines for the forthcoming pre-feasibility study,” said Joshua Bleak, President and CEO of Passport Potash.
Passport Potash 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.
On Thursday, Passport Potash rose 5% and was trading at $0.105 a share. The company had a market cap of $19.3 million, based on 183.6 million shares outstanding.