Ethiopian Potash Corp. (FED-WT.TO) said it has amended an option
agreement so that more equity will be issued to acquire G&B
Central African Resources Ltd, owner of a key property in
Shares are halted until 145 p.m (
Under the terms of the original option agreement, the G&B
shareholders and the founders were to have receive 13.0 million
shares of EPC to exercise the option, as well as $1,000,000 in cash
to the G&B Shareholders and $1,000,000 in cash to the founders
upon the satisfaction of a feasibility study in respect of the
EPC has agreed, subject to regulatory and shareholder approval,
to issue a potential additional 38.5 million shares under the
amending Aareement, with 13.5 million shares being issued to the
founders and 25 million shares issued to G&B Shareholders.
These share issuances are in lieu of the 13.0 million shares and
$2,000,000 in cash payable to the founders and the G&B
shareholders in the original option agreement.
George Roach, EPC's chairman and CEO, stated: "That EPC did not
hold direct title to the properties, combined with the current cash
deficit and trying market conditions, resulted in understandable
concern. This agreement confirms the commitment of the G&B
Shareholders to a common destiny with EPC and addresses some of the
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