Tata Chemicals to boost its stake in Canada’s EPM Mining Ventures to 30.6 per cent

Tata Chemicals Ltd, is entering into a private placement agreement with Canadian potash miner EPM Mining Ventures Inc to raise its stake through its UK subsidiary Gusiute Holdings (UK) Limited.

Toronto Stock Venture Exchange-listed EPM Mining Ventures Inc. is an exploration-stage potash development company with  primary focus on world-class project on the Sevier Dry Lake in Utah.The Utah project covers about 100,000 acres and intends to produce sulfate of potash and other beneficial minerals.

EPM said in a statement it would issue one unit, representing eight million voting shares and eight million purchase warrants, to Tata at $16 million.

Each unit will comprise 8 million voting common shares of EPM and 8 million common share purchase warrants. Each warrant will entitle the holder to subscribe to one EPM share at $2.00 per share for 12 months following the closing of the offering

On finalisation of the transaction, Tata Chemical's stake in EPM Mining will increase to 30.6 per cent. Tata Chemicals currently also owns shares in EPM through a separate subsidiary.

Upon closing of the offering and the transfer based on its percentage ownership, Gusiute will have the right to nominate two directors on  EPM's board.