Potash Ridge Corp. entered a convertible security funding agreement for up to US$11.8 million in two tranches with an entity managed by The Lind Partners, a New York-based asset management company.
The company will use the proceeds to further advance its Valleyfield potash project in Quebec and its Blawn Mountain project in Utah, as well as for working capital.
Potash Ridge's obligations under the agreement are secured by all of its present and after-acquired property, including a pledge of its equity interests in its subsidiaries, according to its Dec. 16 news release.
The company will also issue warrants to Lind in respect of the first convertible security, which are exercisable for 60 months at 50 cents per share. The first tranche is expected to occur on or around Dec. 23.