Potash North Resource Corporation
TSX VENTURE : PON

Potash North Resource Corporation

June 09, 2008 17:21 ET

Potash North Resource Corporation Announces Overnight-Marketed Private Placement of Units

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Potash North Resource Corporation (TSX VENTURE:PON) (the "Company") is pleased to announce that it has entered into an agreement for an overnight-marketed private placement with a syndicate of agents (the "Agents") led by Canaccord Capital Corp. Pricing will be determined in the context of the market for gross proceeds of approximately $25,000,000 million in units (the "Units"). Each Unit is comprised of one common share and one common share purchase warrant. The Company has granted the Agents an over-allotment option to solicit an additional $5,000,000 in Units, exercisable 48 hours prior to closing.

The offering is expected to close on or about July 7, 2008 and is subject to certain conditions, including regulatory approval.

Net proceeds from the offering will be used to fund the exploration, evaluation and potential development of the Company's KP416 and KP417 potash permits in Saskatchewan and for general corporate purposes.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

ON BEHALF OF THE BOARD

Potash North Resource Corporation

David Baker, President

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Potash North Resource Corporation
    David Baker
    President
    (604) 685-3317