Pacific Potash Corporation has signed a letter of intent to purchase all its issued and outstanding securities in Moonraker Acquisition Corp and its shareholders.
Moonraker holds an option to acquire an 80% interest in Western Potash Corporation's assets in Brazil, which comprises of several claim parcels in the Amazonas Potash Basin.
Pacific Potash said it will acquire all of the issued and outstanding shares in exchange for the issuance of 4,975,000 common shares.
Moonraker or Pacific Potash must pay $100,000 on execution of the option and a further $150,000 and issue 500,000 common shares of Pacific Potash after TSXV approval, to earn the 80% interest.
On or before the first anniversary of the agreement, Moonraker or Pacific Potash must pay $250,000, and issue a further 500,000 common shares of Pacific Potash.
A further $2 million must be spent on exploration expenditures over three years.
An 80:20 joint venture will be formed, with Pacific Potash paying 80% of costs while Western will pay 20% of the costs following completion of cash payments, share issuance, and exploration commitments.