RENO, Nev., April 16, 2012 /PRNewswire/ -- Potash America, Inc. (OTCBB: PTAM), (the "Company") is pleased to announce that it has entered into a US$1,000,000 Letter of Credit Agreement. Pursuant to the terms outlined in the Letter of Credit, at any time the Company may require any and all funds outstanding under the Letter of Credit, except for accrued interest which is to be paid in cash, to be converted into units of the Company at a price of $0.80 per unit (the "Unit"). Each Unit consists of one (1) share of common stock and one (1) warrant to purchase one (1) share of common stock at $1.50 US for a period of five (5) years. The Company will pay annual interest of 5% until the loan is repaid or converted into Units. The Company will issue 1,250,000 Units when the exercise provision is enacted.
Barry Wattenberg, President and CEO said "This Letter of Credit will provide the Company with the working capital it needs for the Calcium-Montmorillonite project it is developing in Sodaville, Nevada. The Company is aggressively exploring both its quarries and the marketplace for its product(s)."
"Forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future including, but not limited to, additional acquisitions, any draw downs on the line of credit or the Company's ability to repay amounts advanced. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. Potash America, Inc. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our current and periodic reports filed from time-to-time with the Securities and Exchange Commission.
For Additional Information, Contact:
Teresa Schaffer, shareholder/public relations
E-mail: [email protected]
SOURCE Potash America, Inc.