WESTERN POTASH CLOSES STRATEGIC INVESTMENT FROM BEIJING TAIRUI INNOVATION CAPITAL MANAGEMENT LTD.
“The greatest challenge to the Milestone Project has always been financing risk”, said Pat Varas, Western’s President & CEO. “Today’s transaction represents a major step in risk reduction. Western has been actively canvassing the globe for a strategic partner with the financial strength to help us execute on the Pilot Plant. We believe that Tairui is an ideal partner. We believe that this strategic investment provides our shareholders with much greater value than an outright sale of the project or a dilutive standalone public financing would in the current depressed markets. The Transaction represents an opportunity not afforded to the shareholders of many junior companies at the moment.”
“Since the signing of the term sheet 11 months ago, we have had the opportunity to broaden our knowledge of the Milestone Project”, said Bill Xue, President of Tairui. “In fact, the scoping study results delivered in July of this year provide for a scalable and more flexible approach to the project. At Tairui, we look to invest in advanced projects with a large resource base and without environmental complications. The scalability we see in the scoping study is attractive from a cost and project timeline perspective and renders the project relatively more competitive. The Western Potash team is highly skilled, committed and passionate. In combining the resources of Tairui with the high quality Milestone Project and an innovative development process, we are excited about the future prospects for Western.” |