Magna Resources Ltd. (CNSX:MNA) has bought a further 50% interest in American Potash LLC from Confederation Minerals Ltd. (TSX-V:CFM). The acquisition gives Magna 100% ownership of American Potash.
Magna transferred 22,420,000 common shares, as well as 2,400,000 common share purchase warrants, to Confederation at the closing of the acquisition.
The warrants can be exercised for $0.10 per share and expire in February of 2016.
American Potash conducts potash exploration and development and owns the Green River Project in Utah and potash leases southeast of Holbrook, Arizona.
Rudy de Jonge, Magna’s CEO and president, said moving from a 50% interest to 100% makes sense because at 50%, investors are not sure who has control.
“This consolidates control and corporate management,” de Jonge said. “It’s just a more attractive enterprise.”
He said Magna is now working on getting its permits.
Lawrence Dick, president of Confederation, said the acquisition is “a win-win situation.”
Dick said the transaction allows Confederation to focus on its other projects, including the Newman-Todd gold exploration project in the Red Lake gold camp.
Magna Resources is based in Vancouver and is engaged in the acquisition of potash mineral projects.
As of press time, Magna’s share price was $0.42.
Emma Crawford