IC Potash pursues lawsuit in Colorado to set aside dilutive financing undertaken by Cartesian Capital in an attempt to obtain...
12 July 2017 - 11:00PM
IC Potash Corp. (TSX:ICP)
(OTCQB:ICPTF) (“IC Potash” or the “Company”) is pursuing a lawsuit
in the state of Colorado to unwind a very dilutive financing
undertaken by Cartesian Capital (“Cartesian”) which IC
Potash believes was done solely in order to gain full control
of the Ochoa Deposit at a price significantly below fair market
value. The Company believes this matter will come before the
Colorado courts within the next month.
IC Potash also announces that it was recently
served with a lawsuit commenced by Cartesian and two
of its Principals, Peter Yu and Paul Hong, on behalf of
Cartesian investors in the State of New York.
Mehdi Azodi, President of IC Potash said,
"Notwithstanding that the lawsuit is frivolous in and of itself,
the board of IC Potash believes that commencing the lawsuit in
New York rather than Colorado shows a certain desperation and
concern on Cartesian's part to distract attention from the Colorado
proceedings, which we believe could have a significant
deleterious effect on Cartesian and its investors."
The New York lawsuit, which will be vigorously
defended by IC Potash, alleges on the most general of grounds and
without a great deal of specificity that, among other things,
IC Potash withheld certain information from Cartesian and
delayed contractual decisions. IC Potash and its board will
continue to take all necessary measures to protect its investment
in the Ochoa Deposit and to prevent it from being seized at below
market prices.
About IC Potash Corp.
IC Potash has previously demonstrated a method to
make Sulfate of Potash (“SOP”) from the Ochoa polyhalite deposit in
Southeast New Mexico in which it has an interest and is currently
examining ways to become a low-cost fertilizer producer. The
current review of the Ochoa project’s existing feasibility study is
being extended to determine a viable positive economic path to the
production of direct application polyhalite. The Ochoa project has
access to excellent local labor resources, low-cost electricity and
natural gas, water, rail lines, and the Port of Galveston, Texas.
The Ochoa project’s land holdings consist of nearly 90,000 acres of
potassium prospecting permits and mining leases issued by the U.S.
Bureau of Land Management and State of New Mexico. For more
information, please visit www.icpotash.com.
Forward-Looking
Statements
Certain information set forth in this news release
may contain forward-looking statements that involve substantial
known and unknown risks and uncertainties and other factors which
may cause the actual results, performance or achievements of IC
Potash to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements include
statements that use forward-looking terminology such as “may”,
“will”, “expect”, “anticipate”, “believe”, “continue”, “potential”
or the negative thereof or other variations thereof or comparable
terminology. Such forward-looking statements include, without
limitation, statements regarding trends in the markets for Sulfate
of Potash and polyhalite, the timing for completion of an updated
feasibility study by the Company, the Company’s intention to
investigate the feasibility of polyhalite product production, the
potential value of water resources and other statements that are
not historical facts. These forward-looking statements are subject
to numerous risks and uncertainties, certain of which are beyond
the control of IC Potash, including, but not limited to, changes in
market trends, the completion, results and timing of studies
undertaken by IC Potash, risks associated with mineral exploration
and mining activities, the impact of general economic conditions,
commodity prices, industry conditions, dependence upon regulatory
and environmental approvals, the uncertainty of obtaining
additional financing, and risks associated with turning reserves
into product. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking
statements.
For More Information, Please Contact:
IC Potash Corp.
Mr. Mehdi Azodi, +1-416-779-3268
Chief Executive Officer
MAZODI@ICPOTASH.ORG