Sage Potash Corp. announces that it has entered into an agreement with a subsidiary of International Process Plants for the purchase of processing equipment for $12.6 million. This equipment is capable of processing up to 300,000 tonnes per year of potash. The majority of the equipment being purchased, which had never been assembled or used and currently is in storage in Europe, was fabricated in 2012 at a cost of approximately €36 million (US$54 million) at the time. The balance of the equipment to be acquired by the Company will come from IPP’s inventory of second-hand machinery.Under the Purchase Agreement, the Company will satisfy the purchase price by paying $6,300,000 in cash, issuing 12,600,000 common shares to IPP at a deemed price of $0.20 per share, and issuing IPP a secured convertible debenture with a principal amount of $3,780,000. The secured convertible debenture will mature in five years while accruing interest at 12% per annum, and in addition, the holder may convert any or all of the outstanding indebtedness into shares of the Company at $0.40 per share at any time.In addition, the Company is announcing a non-brokered private placement of 37,600,000 common shares at $0.20 each for gross proceeds of $7,520,000 and convertible debentures with an aggregate principal amount of $3,780,000. The convertible debentures offered under the Private Placement will not be secured, but will otherwise have the same terms and conditions as the IPP secured convertible debenture. (ICE TORONTO)

Fonte notizia: https://www.canadianmanufacturing.com/