Passport Potash, Inc. (TSX:V.PPI, Stock Forum) said that it has entered into an agreement with HNZ Potash, LLC to jointly explore and potentially develop 21 permitted parcels of exploration land in Arizona.
The property, located on the southernmost area of the company’s landholdings, seven miles east of Holbrook, has not been previously explored by Passport.
According to the press release, under the terms of the joint exploration agreement HNZ has agreed to pay Passport 50% of previously incurred costs for a 50% interest in the property.
The purposes of the agreement are to conduct exploration and to evaluate the potential for development and mining of the property. If justified by the exploration activities, the parties upon mutual agreement will form an entity to seek a mining lease to jointly engage in development and mining.
Passport is a publicly traded corporation engaged in the exploration and development of advanced potash properties with its major focus on a previously explored potash property in Arizona.
On Thursday, Passport was trading at $0.21 a share. The company has a market cap of 36.28 million, based on 172.8 million shares outstanding. The 52-week high and low was $0.63 and $0.165 respectively.