Western Potash Engages UBS as Global Financing Advisor
Western Potash Engages UBS as Global Financing Advisor
January 22nd, 2013, Vancouver BC – Western Potash Corp. (WPX: TSX) (FSE: AHE) ("the Company") is pleased to announce that UBS Securities Canada Inc. ("UBS") has been engaged to assist the Company in the process of evaluating alternatives related to securing financing for the development of its 100% owned Milestone property in southern Saskatchewan, Canada (the “Project”).
Patricio Varas (CEO and President) commented, "Now that the Company’s Feasibility Study for the Milestone Project has been released, our focus is on identifying and reviewing various alternatives in order to secure the financial commitments required to proceed with the Project, including mine construction. We believe Milestone is a compelling project that’s attracting global attention. UBS brings considerable experience in arranging and structuring financial solutions for companies with major capital-intensive projects.”
The Company is pleased to announce the receipt of an updated NI 43-101 Technical Report titled NI 43-101 Technical Report Summarizing the Feasibility Study for a Potash Solution Mine on the Milestone Project (Subsurface Mineral Lease KLSA 008), Saskatchewan. The Company confirms that this Report was filed on SEDAR on January 18, 2013. The Technical Report includes an updated reserve and resource estimate, and a summary of the Feasibility Study (“the Study”) that was summarized via news release dated December 6, 2012. The Study confirmed that the asset is of sufficient size and grade to support primary and secondary potash solution mining for more than 40 years at an ultimate production rate of 2.8Mt/yr. The Study reports an after-tax project Net Present Value (“NPV”) of $2.44B CAD, with an Internal Rate of Return (“IRR”) of 18.6 % assuming a nominal discount rate of 10%.
About Western Potash Corp.
Western Potash Corp. is a development stage potash company focused on building Canada's most efficient potash solution mine, with commercial production expected to commence in 2016. The Company anticipates Environmental Assessment approval in the first quarter of 2013. The Company intends to develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.
The in-house qualified persons for the purposes of NI 43-101 guidelines are J. Patricio Varas, P. Geo and Dean Pekeski, P. Geo, both of whom have reviewed and approved the contents of this news release.
There can be no assurance that any financial transaction will occur and there is no defined timeline for the process. In addition, the Company does not intend to make any further announcements regarding the process until the Board of Directors has approved a specific transaction or otherwise deems that disclosure of developments is warranted.
For more information on Western Potash Corp.’s projects, please visit the Company’s website at: www.westernpotash.com
ON BEHALF OF THE BOARD OF DIRECTORS
J. Patricio Varas
President and CEO
Cautions Regarding Forward-Looking Statement
This news release includes certain statements and information that may contain forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including the likelihood of commercial mining, the likelihood of securing a strategic partner, the requirements and potential output of the Project and the ability to finance future mine development are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements concerning: Company plans at the Project; Company ability to finance the Milestone Project; the timing of granting of key permits, and, from the Study: the estimated potash production and the timing thereto; economic analyses; capital and operating costs; mine development programs; future potash prices; cash flow estimates; and economic indicators derived from the foregoing. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Western Potash to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the receipt of all necessary approvals; the ability to conclude a transaction; uncertainty of future production, capital expenditures and other costs; financing and additional capital requirements; the receipt in a timely fashion of any further permitting for the Milestone Project; legislative, political, social or economic developments in the jurisdictions in which Western Potash carries on business; operating or technical difficulties in connection with mining or development activities; and the risks normally involved in the exploration, development and mining business. Although management of Western Potash has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. Western Potash does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.