Sustainable Recycled Water Source Secured for Milestone Potash Project
November 27, 2012, Vancouver BC – Western Potash Corp. (WPX: TSX) (FSE: AHE) (“the Company”) is pleased to announce that, further to its press release dated June 26, 2012, a Definitive Agreement with the City of Regina was signed on November 26th securing the long term, economical and reliable source of process water for the Milestone Potash Project (“the Project”). Under the agreement the Company will have access to 60,000 cubic metres per day of treated effluent for the first 6 years and 42,240 cubic metres for the remaining 39 years. This amount is sufficient to satisfy the requirements for the solution mining process during the entire life of the mine.
As part of the execution of the Agreement, Western paid the City of Regina a $500,000.00 Commitment Fee. Annual payments to the City of Regina will be worth more than $200 million throughout the Agreement’s term. The Company will fund the construction of the pipeline and associated infrastructure to deliver the effluent to the mine site located approximately 30km southeast of Regina. The diversion of effluent from southern Saskatchewan’s watershed will produce a net environmental benefit, while creating economic growth for the Province, making this partnership a true “win-win” for both parties.
“This mutually beneficial agreement is another step towards Regina’s vision of a sustainable community," said Regina Mayor Michael Fougere. "The City of Regina will be compensated for treating a waste product while helping facilitate economic growth in one of Saskatchewan’s key sectors – potash development. In addition, downstream negative effects such as increased algae will also be alleviated, making this is a prime example how creative thinking and partnerships can yield a more promising future for everyone.”
“Executing the Definitive Agreement with the City of Regina is a critical deliverable in progressing the Milestone Project,” says Western Potash Corp. President and CEO Patricio Varas. “Securing a long term, reliable water supply is a key component of the Feasibility Study and crucial to advancing the project on schedule.”
The Milestone Feasibility Study is now drawing to a close with a completion date set for late November 2012. In addition, Western Potash Corp. remains involved in ongoing negotiations with numerous parties, any of which could lead to equity and debt financings, joint ventures, takeovers or other types of merger transactions to advance the development of the Milestone project.
ON BEHALF OF THE BOARD OF DIRECTORS
“J. Patricio Varas”
J. Patricio Varas
President and CEO
Western Potash cautions the reader that there is no guarantee that any of the matters set out above, including the future payments and planned construction set out in the Recycled Water Source Agreement (the “RWSA”), will be completed, or that the material terms and conditions of the RWSA will be met. Except for statements of historical fact relating to Western Potash, certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the RWSA and the Milestone Feasibility Study, timelines for completion of various steps related to the foregoing; and the ability of Western Potash to develop the Milestone Project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Western Potash to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the receipt of all necessary approvals; the ability to conclude a transaction; uncertainty of future production, capital expenditures and other costs; financing and additional capital requirements; the receipt in a timely fashion of any further permitting for the Milestone Project; legislative, political, social or economic developments in the jurisdictions in which Western Potash carries on business; operating or technical difficulties in connection with mining or development activities; and the risks normally involved in the exploration, development and mining business. Although management of Western Potash has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Western Potash does not undertake to update any forward-looking statements or forward-looking information that is incorporated by reference herein, except in accordance with applicable securities