Passport Potash Inc. (TSXV:PPI,OTCQX:PPRTF) extended the option to acquire the Twin Buttes Ranch to January 6, 2016, by signing a further amendment to the option agreement with Twin Buttes Ranch LLC.
As quoted in the press release:
The key terms of the Amendment include:
Option is extended until January 6, 2016;
A $250,000 payment to be paid on the earlier of (i) within thirty days of closing its next round of financing which is a minimum of five million dollars, or (ii) December 1, 2013. This $250,000 payment is not an elective payment and became an obligation of Passport upon the signing of the Amendment;
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 (the “Mining Lease”) dated December 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;
Passport Potash Inc. President and CEO, Joshua Bleak, said:
We are grateful to the Fitzgerald family for their willingness to work with us on extending the term of the option agreement. 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.