VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2011) - Passport Potash, Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) has signed a letter of intent to enter into binding agreements under which NZ Potash, LLC will sell to Passport its 50% ownership interest in HNZ Potash, LLC. Passport and HNZ Potash will strive to jointly develop their combined potash properties in the Holbrook Basin.
When combined the properties will contain over 200,000 acres of mineral rights and will cover over 300 square miles. Following the release of Passport's NI 43-101 from SRK containing an exploration potential, the Company intends to jointly prepare an NI 43-101 resource report with HNZ Potash. Exploration activities of the combined companies that have been completed to date consist of over 50 drilled wells and over 100 lines miles of 2D seismic.
To view the combined properties, please click on the following link: http://passportpotash.com/images/map/LandStatusMap.pdf.
Passport President and CEO, Joshua Bleak, commented: "We are extremely excited with the prospects which this LOI presents to the Company. The added lands are an ideal complement to our current land position. Looking at the map we now have contiguity from our lands on the west side of the basin down to our southern sections and from there up to our sections on the east side. We look forward to working with HNZ Potash and believe that the synergy created by this combination, in addition to providing a more detailed delineation of the potash deposition in this area, will move the companies forward in ways that were impossible working separately."
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 81,315 acres. For more information regarding the Holbrook Basin, please visit http://www.azgs.az.gov/arizona_geology/Summer%2008.pdf.
Stephen B. Butrenchuk, P.Geol., Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved this news release.
On behalf of the Board of Directors of Passport Potash Inc.
Joshua Bleak, President
