Panorama Resources to merge with new company focused on Ethiopian potash play
Winnipeg Free Press, VANCOUVER – A new private company formed to acquire potash permits in the Danakil region of Ethiopia is poised to take over Panorama Resources Ltd. (TSXV:PRA), a junior company with an early stage copper-gold prospect in northwestern B.C.
Under the proposed reverse-takeover transaction, Panorama would use its stock to “buy” Ethiopian Potash Corp., an Ontario-based company created in July.
The EPC shareholders would end up with enough Panorama shares to control the Vancouver-based company.
Panorama said its directors would be replaced by nominees of EPC, which counts White Rock Capital Partners of Toronto as a major shareholder, and G and B Central African Resources Ltd. (G&B), an offshore company.
The new chairman of Panorama’s board is expected to be George Roach, one of the principles of G&B, and the president-CEO will be David Wahl, a Toronto resident who is president of consulting firm Southampton Associates. Bruce Cumming, another principle of G&B, would be vice president of exploration
Trading of Panorama’s shares were halted Oct. 18, two days before the letter of intent on the takeover was signed. The shares last traded Oct 12 at 15.5 cents per share, making the company worth about $2 million at the time.
Potash is a mineral that’s a primary component of fertilizer, which has been in growing demand globally as developing countries such as China and India seek to increase food production.
Canada has the world’s largest deposits of potash, in Saskatchewan, but there is increased exploration and development activity due to expectations that demand and prices will rise in the long-term.