NEW YORK, January 31 (FinanceEnquiry.com) - Analyst Siddharth Rajeev at Fundamental Research Corp initiates coverage with a Buy rating on the shares of Passport Potash (TSXV: PPI). The fair value is set to $0.51 per share.

In a research note published on January 21, Rajeev mentions that Passport Potash is a potash exploration and development company based in Arizona. The core property is an early stage Holbrook potash project situated in the Holbrook Basin, Arizona. In November 2011, a NI 43-101 compliant report for the project posted an exploration potential resource of 290-315 million metric tonnes of K2O.

Additionally, PPI finished several LOI’s to take over additional land in the Basin, as it plans to drill 10 exploration holes in 2012. Passport Potash presently possesses $10.50 million in cash that is believed to be adequate for the next 12 months. The exit strategy for most of the junior potash players is either to sell the company or look for an appropriate joint venture partner considering the capital-intensive potash projects.