TORONTO, ONTARIO -- (Marketwire) -- 03/28/13 -- Ethiopian Potash Corp. (the "Company" or "EPC") (TSX VENTURE: FED) announces that the parties to the memorandum of understanding (the "MOU") described in EPC's press release dated January 30, 2013 have agreed to further extend the deadline for the execution of the agreements contemplated therein to April 19, 2013.
Progress has been made in the negotiation of the definitive agreements. However, given the complex nature of the transactions contemplated by the MOU, a brief extension is required.
Further to EPC's press release dated February 20, 2013, operations at the Danakil Property have been re-established. The US$1.5 million facility from Danakil Potash Corporation ("Danakil Corp") to G&B, as announced in EPC's February 20th press release, is available to be used towards immediate exploration and the continued development of the Danakil Property. Plinian Capital Limited, which is a significant shareholder of Circum Minerals Ltd. (the parent company of Danakil Corp), acts as the operator of Circum Minerals Ltd. and is expected to be the operator under EPC's proposed joint venture with Danakil Corp.
All third-party and regulatory approvals, as may be required, must be obtained by no later than June 30, 2013. There can be no assurance that the definitive agreements will be entered into within the time required and/or that the transactions contemplated in the MOU will be consummated.
Additional details regarding the transactions contemplated by the MOU are described in EPC's press release dated January 30, 2013. Additional details regarding Danakil Corp's loan to G&B are described in EPC's press release dated February 20, 2013.
About Ethiopian Potash Corp.
Ethiopian Potash Corp. (TSX VENTURE: FED) is a Canadian company based in Toronto, Ontario and Addis Ababa, Ethiopia.
On behalf of the Board of Directors
George Roach, CEO & Director
This press release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur (including, but not limited to, the extent of advances of the proceeds of the loan to G&B, the expected use of proceeds, the potential for and timing of negotiation of definitive agreements) are forward-looking information. Forward-looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, Danakil Corp. being unable to satisfy G&B's draw-down requests under the loan, the failure to satisfy all conditions precedent within the requisite time, including (without limitation) the entering into of all necessary definitive agreements, obtaining the requisite third-party consents and regulatory and shareholder approvals, and changes in general economic conditions or conditions in the financial markets. Such forward-looking information is based on a number of assumptions, including but not limited to, the ability of the parties to fulfill their respective obligations under the loan, the ability of the parties to negotiate and enter into definitive agreements, the parties being satisfied with their respective due diligence investigations, there are no material changes to the terms of any proposed transaction and no significant decline in existing general business and economic conditions. There can be no assurance that the Company will be successful in negotiating and entering into all definitive agreements or that its option to acquire G&B will be exercised or that the proposed joint venture with Danakil Corp will be formed. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligations to update publicly or otherwise revise any forward-looking information, except as may be required by law. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Company's filings with the Canadian securities regulators available on www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Ethiopian Potash Corp.
Chief Executive Officer and Director
+44 779 626 3999
Ethiopian Potash Corp.
Chief Financial Officer
416 907 5644