SASKATCHEWAN – Following the completion of a positive scoping study for its Milestone solution potash project 30 km east of Regina, Western Potash Corp. of Vancouver says its has received an $80-million equity investment by Beijing Tairui Innovation Capital Management.
The Chinese company has agreed to purchase approximately 249.0 million shares of Western at a price of $0.313 per share. The price represents a 46% premium over the company’s volume weighted average price on the TSX for the 30 trading days ended July 3, 2015. The deal gives Tairui a 51% interest in Western Potash and the right to nominate four directors to the Western board.
The Milestone scoping study examined a selective solution mining scenario. After taxes and royalties, the project has a net present value of $56.7 million with an internal rate of return of 25.2%, at a 10% discount. Capital expenditures are estimated at $80.6 million. The mine would have a life of 12 years.
Additional information is available at WesternPotash.com.