Western Potash Corp. Closes $9.6 Million Private Placement
Vancouver BC – Western Potash Corp. (WPX: TSX) (FSE: AHE) (“the Company”) is pleased to announce that it has closed its previously announced private placement. The Company sold 20,000,000 units (the “Units”) at a price of $0.48 per Unit for aggregate gross proceeds to the Company of $9,600,000.
Each Unit consists of one common share in the capital of the Company and one common share purchase warrant (a “Warrant”). Each warrant is exercisable at a price of $0.58 entitling the holder to purchase one common share of the Company at any time up to and including the close of business on October 24, 2015.
The shares and warrants issued as a result of this private placement are subject to a four-month hold period with the period expiring the 25th of February 2013.
The Company paid a 6% cash finder’s fee on a portion of the private placement in a total amount of $458,714.
As previously announced, the size of the placement was reduced to comply with the TSE policy limiting a private placement to less than 25% of a company’s current issued and outstanding share capital, unless prior shareholder approval is obtained.
Proceeds from the private placement are more than sufficient to fully support the completion the Milestone Feasibility Study in addition to Environmental Assessment approval expected in the first quarter of 2013.
ON BEHALF OF THE BOARD OF DIRECTORS
“J. Patricio Varas”
J. Patricio Varas
President and CEO
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 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 are incorporated by reference herein, except in accordance with applicable securities laws.
For more information please contact John Costigan, VP Corporate Development, at (604) 689-9378.