Option Agreement Lawsuit Update
August 3, 2012
VANCOUVER, BC. - North American Potash Developments Inc. (NPD or the "Company") (TSX: NPD; OTCQX: RNGTF; FSE: 3OZ).
Simon Tam, President and CEO, reports:
The Company continues to litigate its claims against Passport Potash Inc. (“Passport”) related to Passport’s uncured defaults of the Option Agreement dated March 28, 2011, in the pending civil action in Salt Lake County, Utah.
On June 11, 2012, Optionor (which includes the Company) terminated the Option Agreement.
Contrary to statements made by Passport in its news release of June 18, 2012 (“Passport Potash Responds to Incorrect Statements”) that the Option Agreement cannot be unilaterally terminated, the Option Agreement expressly provides for unilateral termination by Optionor for Passport’s uncured default of the Option Agreement. Passport has committed multiple breaches, some of which were not timely cured, and others which remain uncured to date.
On June 29, 2012, the Company successfully defeated Passport’s request for a temporary restraining order (“TRO”), wherein Passport sought to prevent Optionor’s termination of the Option Agreement. The hearing on Passport’s request for a preliminary injunction is scheduled to resume on August 22, 2012.
On July 9, 2012, the Court denied a motion by Passport to evade Passport’s obligation to complete its cash and share payments of US$350,000 and 1,400,000 common shares of Passport to Optionor due before the date of termination of the Option Agreement, out of which US$245,000 and 980,000 common shares have been received by the Company. Notwithstanding termination of the Option Agreement, the Company continues to seek redress for all and any other damages suffered as a result of Passport’s improper conduct.
On behalf of the Board of Directors “Simon Tam”
President & Director
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3467 Commercial St., Vancouver, B.C. V5N 4E8 +1 604.638.7382 tel +1 604.871.9926 fax www.napotash.com