(via Thenewswire.ca)
Vancouver, B.C., May 30, 2013 - Pan American Fertilizer Corp. (CNSX: PAF) ("Pan American" or the "Company") is pleased to announce that it has secured a promissory note with an arm's length lender (the "Lender"), in the principal amount of $150,000 (the "Loan"), due at the earlier of: 1) on or before August 15, 2014, and 2) the closing of the transaction between the Company and Golden Fame Resources Corp. (the "Maturity Date") as further described in the press releases of the Company dated April 24, 2013 and May 21, 2013.
The Loan will accrue interest at a rate of 15% per annum and is payable on the Maturity Date. As partial consideration for the Loan, the Company has agreed to issue to the Lender common shares in the capital of the Company (the "Fee Shares") equal to 20% of the loan amount at a deemed price of $0.10 per Fee Share. Accordingly, Pan American will issue to the Lender 300,000 Fee Shares. The Fee Shares will be subject to a hold period of four months and a day from issuance.
In addition, the Company will pay finder's fees of 10% cash (the "Finder's Fees").
Proceeds of the Loan will be used for general working capital. The Loan, the issuance of the Fee Shares and the payment of the Finder's Fees are subject to the acceptance of the Canadian National Stock Exchange.
About Pan American Fertilizer Corp.
Pan American is a Canadian company dedicated to providing fertilizer to growing global markets specifically in South and Central America. The company is focused on the extraction of a specific type of fertilizer called calcium sulphate (also referred to as "Agricultural Gypsum") currently in Argentina. To ensure long term development and increase shareholder value, Pan American currently plans to significantly expand its current operational objectives while expanding its asset base by acquiring additional calcium sulphate and other fertilizer related assets and by expanding its markets to neighbouring countries with Argentina.
When used as a fertilizer and as a soil remediator, calcium sulphate is a soft sulphate mineral composed of calcium sulphate dihydrate which is extremely rich in sulphur and calcium. When dissolved in water, the mineral becomes calcium and sulphate sulphur ions, both of which are required nutrients for plants. Calcium sulphate plays a vital role in establishing and maintaining good chemical balance in soil, water and plants, specifically with healthy root development. Ultimately, calcium sulphate increases overall crop quality and yields. For more information please look at our website www.PAFertilzer.com
On behalf of the Board of Directors of Pan American Fertilizer Corporation.
"Randy Wright"
Randy Wright
Chairman and CEO
FOR MORE INFORMATION, PLEASE CONTACT:
Arwen Reynolds
Corporate Affairs
areynolds@pafertilizer.com
(604)638-3480
The CNSX does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. The words "is expected" or "estimates" or variations of such words and phrases or statements that certain actions, events or results "may" or "could" occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Pan American as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Many of these factors can affect Pan American's actual results and could cause actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Pan American. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. Except as required pursuant to applicable securities laws, Pan American will not update these forward looking statements to reflect events or circumstances after the date hereof.
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