- Western Resources Corp. (WRX) signs a subscription agreement with Vantage Chance Limited
- WPHC was incorporated by Western for the purpose of structuring this transaction
- Western will transfer its 100 per cent equity interest in WPC (134 million common shares) to WPHC
- Vantage will invest $80 million in WPHC and receive 157.3 million WPHC common shares
- Western will then hold 46 per cent of WPHC and Vantage will hold 54 per cent
- Western Resources Corp. (WRX) is up 57.58 per cent and is trading at $0.26 per share as of 3:36 p.m. EST
Western Resources Corp (WRX) has signed an agreement with Vantage Chance Limited to invest $80 million in Western Potash Holdings (WPHC).
WPHC was incorporated by Western for the purpose of structuring this transaction. Upon Western shareholder approval, it will transfer its 100 per cent equity interest in WPC (134 million common shares) to WPHC in exchange for an equivalent number of WPHC common shares.
Vantage will invest $80 million in WPHC and receive 157.3 million WPHC common shares. It will then hold 54 per cent of the issued and outstanding common shares of WPHC and Western will hold the remaining 46 per cent.
The investment proceeds will be used to complete the Milestone Potash Project construction.
Bill Xue, Western’s President and CEO stated,
“The last two years have been very challenging for Western, as we attempted to complete Phase I of our Milestone Potash Project… When successfully completed, we expect the project will significantly change potash mining in Canada as the project is planned to be the first potash mine in the world to leave no salt tailings at surface level, reduce water consumption by up to 50 per cent and significantly improve energy efficiency.”
Western Resources Corp. (WRX) is up 57.58 per cent and is trading at $0.26 per share as of 3:36 p.m. EST.