Potash RidgeCorp. said April 5 that NHP Asset Management AG committed to investC$1 million in the company through a private placement.
Proceeds will be used to advance the company's wholly ownedValleyfield fertilizer project in Quebec and Blawn Mountain potash project in Utah and forgeneral corporate purposes.
Under the terms, Potash Ridge will issue 6.67 million unitsat 15 cents each for NHP to acquire.
Each unit will be comprised of 1 common share and 0.5 commonshare purchase warrant. Each warrant, which expires three years after theclosing of the placement, can be exercised for 1 share at 30 cents per share.
Potash Ridge will have the right to require NHP to exercisethe warrants at any time should the company's common shares trade above 70cents for 21 consecutive trading days.
Closing is expected on or around April 15.
Concurrent with the closing, the Potash Ridge agreed toengage NHP to provide advisory services, which could net NHP up to anadditional 1,000,000 warrants at the same terms as outlined above.