WPHC was incorporated under British Columbia’s Business Corporations Act on 13 January 2022 by Western for the purpose of structuring the transaction. Upon approval by Western’s shareholders, and prior to the completion of the transactions contemplated in the Subscription Agreement, Western will transfer its 100% equity interest in WPC to WPHC in exchange for an equivalent number of WPHC common shares, which will represent 100% of the issued and outstanding shares of WPHC.
Under the subscription agreement, Vantage will invest CAN$80 million in WPHC. As a result, Vantage will hold 54% of the issued and outstanding common shares of WPHC. Western will hold the remaining 46% of the issued and outstanding WPHC common shares.
The investment proceeds raised will be used in the completion of the Milestone Potash Project construction.
Bill Xue, Western’s President and Chief Executive Officer, stated: “The last two years have been very challenging for Western, as we attempted to complete Phase I of our Milestone Potash Project, with limited access to capital due to a variety of factors, including COVID-19. We expect that the investment by Vantage will allow us to complete the project and allow it to recognize its full potential, including use of the innovative technology we have developed alongside. 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% and significantly improve energy efficiency. We look forward to working closely with our new partner as we continue to develop and expand Milestone”.
Read the article online at: https://www.worldfertilizer.com/potash/17022022/western-potash-holdings-corp-and-vantage-chance-enter-into-subscription-agreement/