TORONTO, ONTARIO -- (Marketwired) -- 06/26/13 -- Ethiopian Potash Corp. (the "Company" or "EPC") (TSX VENTURE: FED) is pleased to provide this corporate update on developments in Ethiopia in advance of its annual and special meeting of shareholders, scheduled for June 30, 2013 (the "Meeting").
The Company would like to advise shareholders of the anticipated structure and operations of the Company after the Meeting, assuming the transactions contemplated, as described in the Company's Management Information Circular (the "Circular") receive the required shareholder approval and other conditions precedent to closing are met. As set out in the Circular and materials relating to the Meeting, in the case that shareholder approval for any contemplated transaction is not received, none of the contemplated transactions will be completed and, as a result of EPC not having the ability to fund operations in Ethiopia, EPC will undertake the process of winding-up and delisting.
If the contemplated transactions receive the requisite shareholder approval, the Company will receive US$1.5 million as consideration for the transfer of a 70% interest in the project, will retain a 30% interest in the Danakil properties (the "Danakil Project") and will not be required to contribute to any further expenditures until a total of $8.5 million is contributed by the other parties with an interest in the Danakil Project and the scoping study is completed. In addition, the Company will hold valuable and highly prospective tenements in Togo with established exploration targets for phosphates and industrial minerals adjacent to existing phosphate mining operations, approximately 30 Kilometres from tide water and with access to all infrastructures normally associated with the exploitation of these minerals. In addition, EPC will obtain the right to explore for potassium and other prescribed minerals in the Taoudeni and Oglat zones in the Kidal region of Mali located in the northern part of Mali.
In addition, the Company has proposed a change in management with the addition to the board of directors of Ian Stalker and David De Jong Weill, each providing financial and mining expertise and experience. Their respective CVs are set out in the Circular relating to the Meeting and the shareholders of the Company will have an opportunity to elect these two new nominees at the Meeting.
THE DANAKIL PROJECT UPDATE
The Danakil Project is under the direct management of Plinian Capital Ltd. ("Plinian"), a private equity company that specializes in mining investment and operation controlled by Mr. Bradford Mills. Plinian Capital is a significant investor in TSX listed Mandalay Resources Corporation where Mr Mills serves as CEO and West African Minerals Corporation where Mr. Mills serves as the Executive Vice-Chairman of. Mr. Mills is the current Managing Director of Circum Minerals Ltd. ("Circum"), and the Plinian group is the largest shareholder of Circum.
MONTHLY ACTIVITIES REPORT
During May, senior geological staff reviewed all available project data and finalized operational plans for commencement of resource definition drilling in June. All of the necessary drilling, road construction and camp management contracts were put in place and drilling is expected to start in the last week of June.
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