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Western Resources aiming to complete financing of Milestone potash project by end of 2021

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World Fertilizer,

Western Resources Corp. has said that it is aiming to complete project financing of the Milestone Potash Phase 1 Project in Saskatchewan, Canada, which is operated by the company’s wholly-owned subsidiary, Western Potash Corp.

Since suspending construction of the project in May of last year, Western has continued advancing and optimising its mining operations. These are key to securing the remaining project financing required to complete the balance of plant construction. From 28 April 2020, when hot mining started, until its suspension on 28 May 2021, Western’s operation team has accumulated extensive experience and collected valuable mining data relevant to the application of its solution mining technology. After extensive analysis of the data, and with the help of a number of leading solution mining experts, Western is developing an optimised solution mining plan.

The new plan is to focus on the increase of solution mining efficiency and life span of the mining caverns. To have those positive changes reflected in the overall economic assessment of the project, Western has engaged a third-party engineering firm to review the operation plans and update its National Instrument 43-101 technical report. The updated report will also include an anticipated increase in the project’s mine life from 12 to 40 years. Key findings of the report are expected to be released by mid-October 2021.

In terms of financing, the majority of the company's key creditors have agreed to extend Western’s payment deadlines, which enables Western to focus on obtaining the investments necessary to secure project financing. The company is aiming to complete project financing by end of this year, which is expected to allow Western to pay off outstanding creditors, and to restart mining operations and project construction.

In order to support the company’s liquidity, the company commenced the process of selling its real estate investments earlier this year, with all property sales expected to close by the end of 3Q21. Thereafter, the company will focus its business efforts solely on the development of the project.

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