Printer Friendly

HORIZON GOLD COMPLETES PURCHASE OF AMAX POTASH

 HORIZON GOLD COMPLETES PURCHASE OF AMAX POTASH
 GOLDEN, Colo., Feb. 10 /PRNewswire/ -- Horizon Gold Corporation


(NASDAQ: HRIZ) today announced that on Friday, Feb. 7, 1992, it completed the purchase of all of the outstanding capital stock of Amax Potash Corporation, a Delaware corporation, from AMAX Inc. (NYSE: AMX).
 Under the terms of the agreement, Horizon assumed certain liabilities and paid AMAX a purchase price of $6 million in cash and promissory notes, after giving effect to certain adjustments and the exclusion of certain liabilities.
 Horizon made an initial cash payment toward the purchase price of $3 million. Horizon will pay the balance of the purchase price via a three-year, interest-bearing promissory note in the principal amount of approximately $3 million and an additional promissory note to cover the purchase of excess product inventory. Final purchase price adjustments will be made within approximately 105 days following the closing date.
 Horizon secured the funds to make the initial $3 million cash payment from the proceeds from a private placement wherein Horizon offered to investors short-term promissory notes in the aggregate principal amount of $3,270,000. The notes have attached 1.223 shares of Horizon common stock for each $1.00 of face value, for a maximum total of 4,000,000 shares, and an equal number of warrants, each exercisable for a strike price of 75 cents, expiring two years from the date of grant. The shares and the shares underlying the warrants are subject to demand registration rights.
 Amax Potash Corporation's mine and refinery are located near Carlsbad, N.M., and have been in operation since 1952, producing and selling refined potash and related products. On Feb. 7, 1992, following the closing of the purchase agreement, the corporate name of Amax Potash was changed and adjusted to Horizon Potash Corporation. It is the intent of Horizon to continue the operations at the facility.
 Also announced today, subsequent to the closing of the purchase agreement noted above, Horizon Potash, a wholly-owned subsidiary of Horizon Gold Corporation, entered into a five-year exclusive sales agency agreement with Potash Corporation of Saskatchewan Sales Limited ("PCS Sales") a wholly owned subsidiary of Potash Corporation of Saskatchewan, Inc. (NYSE, TSE: POT), wherein Horizon Potash appointed PCS Sales as its exclusive sales agent for all potash produced by Horizon Potash. PCS is the largest publicly traded potash producer in the world, and brings great strength to Horizon's marketing efforts.
 -0- 2/10/92
 /CONTACT: Dick Ryan of Horizon, 303-239-8701/
 (HRIZ AMX POT) CO: Horizon Gold Corporation; Amax Potash Corporation;
 Potash Corporation of Saskatchewan Sales Limited ST: Colorado, New Mexico IN: MNG SU: TNM


GK-SH -- NY006 -- 8114 02/10/92 08:32 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 10, 1992
Words:445
Previous Article:SPRING FASHION FORECAST: SILVER LINING IN CLOUDY ECONOMY
Next Article:/C O R R E C T I O N -- SUMMIT HEALTH SUBSIDIARY REFILES INITIAL PUBLIC OFFERING.
Topics:


Related Articles
HORIZON GOLD CORP. SIGNS LETTER OF INTENT WITH AMAX INC.
HORIZON GOLD TO RESTRUCTURE SWISS BONDS AND SETS CLOSING DATE FOR POTASH ACQUISITION
POTASH CORPORATION OF SASKATCHEWAN INC. TO BE EXCLUSIVE SALES AGENT FOR HORIZON POTASH CORP.
HORIZON REPORTS THIRD QUARTER RESULTS
HORIZON GOLD COMPLETES RESTRUCTURING OF SUBORDINATED CONVERTIBLE DEBENTURES
HORIZON GOLD COMPLETES RESTRUCTURING OF SUBORDINATED CONVERTIBLE DEBENTURES
HORIZON GOLD ARRANGES FINANCING
HORIZON OBTAINS OPTION TO ACQUIRE ADDITIONAL POTASH LEASES
HORIZON RESOURCES CORP. ANNOUNCES RESULTS
HORIZON RESOURCES REPORTS RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters