Effective April 17, Potash One has completed a business combination with Potash North Resource Corp (PON). As a result of the business combination completing, PON is now a wholly owned subsidiary of Potash One.

Paul Matysek, President and CEO of Potash One stated: “We are very pleased to have completed the acquisition of Potash North in a timely fashion and we welcome our new shareholders from PON. With the transaction finalised, Potash One has solidified its position as the leading junior potash mine developer in Canada. Potash One now has working capital in excess of the costs to complete the feasibility of its Legacy project and now controls over 500,000 acres of Potash Subsurface Exploration Permits in Saskatchewan, Canada.”

Potash One is engaged in development of advanced potash properties amenable to solution mining. It owns 100% of more than 515,000 acres of Potash Subsurface Exploration Permits in Saskatchewan, Canada. This includes the 97,240 acre Legacy Project which has an NI 43-101-compliant Indicated mineral resource of 40.8 Mt of K2O and an Inferred mineral resource of 391.5 Mt of K2O. The Legacy Project is adjacent to the largest producing solution potash mine in the world. Solution mining is scalable, shorter time to production and has significantly lower capex.

Pursuant to the business combination, Potash One acquired all the issued and outstanding shares of PON, with each outstanding PON share exchanged for 0.3125 common shares of Potash One. PON share purchase warrants remain exercisable according to their terms, however when exercised, will entitle the holder to acquire Potash One shares on the basis of the above noted exchange ratio. Incentive stock options of PON were exchanged for stock options of Potash North with appropriate adjustments to the number of shares issuable on exercise and the exercise price, and in the case of holders of options not continuing with Potash One, the options will expire in 12 months.

Shares and warrants of PON held by Potash One prior to the closing of the business combination were disposed of by Potash One to a trust established for the purpose of operating a share compensation plan for the benefit of eligible Potash One employees, officers, directors and consultants. The compensation plan with the trust is subject to exchange and shareholder approval.