RENO, Nev., April 16, 2012 /PRNewswire/ -- Potash
America, Inc. (OTCBB: PTAM), (the "Company") is pleased to announce
that it has entered into a US$1,000,000 Letter of Credit Agreement. Pursuant
to the terms outlined in the Letter of Credit, at any time the
Company may require any and all funds outstanding under the Letter
of Credit, except for accrued interest which is to be paid in cash,
to be converted into units of the Company at a price of
$0.80 per unit (the "Unit"). Each
Unit consists of one (1) share of common stock and one (1) warrant
to purchase one (1) share of common stock at $1.50 US for a period of five (5) years. The
Company will pay annual interest of 5% until the loan is repaid or
converted into Units. The Company will issue 1,250,000 Units when
the exercise provision is enacted.
Barry Wattenberg, President and
CEO said "This Letter of Credit will provide the Company with the
working capital it needs for the Calcium-Montmorillonite project it
is developing in Sodaville, Nevada. The Company is aggressively exploring
both its quarries and the marketplace for its product(s)."
"Forward-looking statements", as that term is defined in Section
27A of the United States Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Statements which are not
purely historical are forward-looking statements and include any
statements regarding beliefs, plans, expectations or intentions
regarding the future including, but not limited to, additional
acquisitions, any draw downs on the line of credit or the Company's
ability to repay amounts advanced. Actual results could differ from
those projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the inherent
uncertainties associated with mineral exploration. Potash America,
Inc. assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and
intentions contained in press release are reasonable, there can be
no assurance that such beliefs, plans, expectations or intentions
will prove to be accurate. Investors should consult all of the
information set forth herein and should also refer to the risk
factors disclosure outlined in our current and periodic reports
filed from time-to-time with the Securities and Exchange
Commission.
For Additional Information, Contact:
Teresa Schaffer, shareholder/public
relations
Tel: 1-877-745-3680
E-mail: teresaschaffer@jroycemedia.com
SOURCE Potash America, Inc.
