Western Potash Corp. Closes $20,000,200 Bought Deal Private Placement
Western Potash Corp. (the "Company") is pleased to announce that it has closed its previously announced private placement bought deal offering. The Company sold 18,182,000 units (the "Units") at a price of $1.10 per Unit, for aggregate gross proceeds to the Company of $20,000,200 (the “Offering”).
Each Unit consists of one common share in the capital of the Company (each a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant shall entitle the holder to purchase one Common Share of the Company at an exercise price of $1.75 at any time up to and including the close of business on June 21, 2013, being the day which is 30 months from the closing of the Offering. All securities issued under the Offering are subject to a hold period ending April 22, 2011.
The Offering was underwritten by a syndicate of underwriters co-led by Mackie Research Capital Corporation and Scotia Capital Inc. (collectively, the “Underwriters”)
The net proceeds received by the Company from the sale of the Units will be used to advance the Company's Milestone Potash Development Project located in the Province of Saskatchewan, and for general working capital purposes.
In consideration for their services, the Underwriters have received a cash commission of 6.0% of the aggregate gross proceeds of the Offering. In addition, the Underwriters received an aggregate of 1,272,740 non-transferable Common Share purchase warrants (the “Compensation Warrants”) each exercisable to acquire one Unit at a price of $1.10 per Compensation Warrant at any time up to and including the close of business on June 21, 2013, being the day which is 30 months from the closing of the Offering.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons," as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company’s filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward-looking statements, except as required by applicable securities laws.
ON BEHALF OF THE BOARD OF DIRECTORS
J. Patricio Varas,
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.