North American Potash Developments Notified that it is in Breach of Option Agreement with Passport Potash
FOR: PASSPORT POTASH INC.
MAY 31, 2012 - 18:36 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2012) - On May 18, 2012, Passport Potash Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) ("Passport" or the "Company") through its solicitors delivered a letter to North American Potash Developments Inc. (formerly Ringbolt Ventures Ltd.) and the other optionors (collectively the "Optionor"), informing them that they were in breach of the Option Agreement dated March 28, 2011. The Company informed Optionor that the payment of cash and shares that were due on May 17, 2012 would not be paid until Optionor cured the defaults delineated in the default letter.
On May 25, 2012 Passport was informed by Optionor that it had filed a civil action in Utah seeking specific performance of the Option Agreement. At market close on May 25, 2012 Optionor issued a press release announcing the civil action, which also breached the Option Agreement. The Company will vigorously defend its rights in the Option Agreement.
About the Holbrook Potash Project
Passport Potash Inc. is a TSX-listed resource company engaged in the exploration and development of advanced potash properties. Passport has acquired a strategic position in the Holbrook Basin with land holdings encompassing over 122,000 acres.
For more information regarding the Holbrook Basin visit our website at www.passportpotash.com.
On behalf of the Board of Directors
PASSPORT POTASH INC.
Joshua Bleak, President
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Passport Potash Inc.
Peter J. Kletas
Manager of Corporate Development
Passport Potash Inc.