10/31/2012 10:29 EDT | Updated 12/31/2012 05:12 EST

Passport Potash pays $3.5M for Arizona property; part of civil settlement

VANCOUVER - Passport Potash, Inc. (TSXV:PPI) says it will acquire 100 interest in its land holdings on the east side of the Holbrook Basin in Arizona for just over $3.8 million.

Vancouver-based Passport said Wednesday that the deal is part of a settlement agreement with North American Potash Developments Inc. and the other parties in the civil action in Utah.

In addition to the cash payment, which is to be made in stages, Passport will issue 750,000 common shares to the NAPD Group.

As well, should Passport sell or transfer its interest in the property, the NAPD Group will receive a bonus payment if Passport receives more than $30 million.