Friday afternoon, Passport shares were up 28 percent to $0.23.
In late October, Arizona-focused potash developer Passport signed a letter of intent to purchase the stake in HNZ Potash, which owns close to one million acres of mineral rights across Arizona, New Mexico, Colorado and Oklahoma.
Had the sale gone through, Passport and HNZ would have jointly owned more than 200,000 acres of mineral rights in Arizona's Holbrook Basin.
Passport Potash also said it has arranged a fully subscribed non-brokered private placement of $6.98 million, which consists of 46.5 million units at $0.15 cents, with each unit consisting of one common share and one half warrant exercisable at $0.20 cents for a period of one year.
The proceeds will be used for general working capital and the current exploration program.
The company said it will also re-price 5,777,000 options that were issued at $1.20 and 1,321,000 options that were issued at $0.83 cents. The options will be re-priced at $0.20.
Passport holds over 81,315 acres in Arizona's Holbrook Basin.