VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2012) - Passport Potash Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) ("Passport" or the "Company") is pleased to announce that is has signed a letter of intent ("LOI") with the Hopi Indian Tribe ("Hopi" or the "Tribe"). The LOI, which is non-binding, is an outgrowth of the access and information sharing agreement signed between the parties in March 2011, and authorizes the engineering firm, ERCOSPLAN, to combine the Hopi and Passport land sections in the upcoming Preliminary Economic Assessment ("PEA") commissioned by Passport, and lays the groundwork for potential joint exploration and development of the potash resources in the Holbrook Basin.
The LOI further witnesses the intent of the parties to jointly explore the contiguous land sections to determine their combined economic potential. The exploration program will be based upon recommendations from ERCOSPLAN and purposed to maximize the potential resource on the combined properties.
The parties also intend, based on the geologic findings on the properties, to proceed towards negotiating a definitive mining development agreement ("MDA") between the parties, and further agree to conduct the MDA negotiations in good faith with an understanding that time is of the essence.
The inclusion of the private properties owned by the Hopi tribe in the PEA will necessitate delaying the release of the PEA for 60 to 90 days to allow ERCOSPLAN to incorporate the Hopi data. The PEA will be addressed to and owned by both PPI and the Tribe, who shall each be entitled to use and rely on the PEA for both their joint and individual purposes.
"We are extremely pleased to have entered into this LOI with the Hopi Tribe, and are excited to help them cultivate this economic development opportunity on their private land sections in the Holbrook Basin," commented Joshua Bleak, Passport's President and CEO. "Our goal is, and has always been, to see a potash mine built in the Holbrook Basin, and we see this as another positive step towards realizing this goal."
About Passport Potash Inc.
Passport Potash Inc. 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. Passport has acquired a strategic position in the Holbrook Basin with land holdings encompassing over 121,000 acres. For more information regarding the Holbrook Basin, please visit http://www.azgs.az.gov/arizona_geology/Summer%2008.pdf.
On behalf of the Board of Directors of Passport Potash Inc.
Joshua Bleak, President
This news release includes certain statements that may be deemed "forward-looking statements". Forward-looking information includes, but is not limited to: statements with respect to the effect and estimated timeline of the drilling and assay results on the Company; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting ; government regulation of mining operations; potential future expansion of the PFNP; environmental risks; unanticipated reclamation expenses; and title disputes or claims. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 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.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.