Western Potash Corp. (TSXv: WPX) (FSE: AHE) (“the Company” or ‘Western Potash”) is pleased to announce that it has created a wholly owned subsidiary, Discovery Harbour Resources Corp. (“Discovery Harbour”). The subsidiary has been established to take advantage of present market conditions, which have presented several advanced stage mining project opportunities to the Company that require both the raising of financial capital and management to move forward and succeed. Discovery Harbour will source, evaluate and invest in advanced stage (approaching or in feasibility or entering development) mineral projects with the aim of providing the technical know-how to advance the projects and the corporate management to finance and bring the projects forward.
Western Potash Corp. will continue uninterrupted and dedicated to its mission to define and develop one or more world-class potash deposits in an ecologically sustainable, economically efficient and socially responsible manner. The Company’s wholly owned subsidiary, Discovery Harbour, will provide shareholders with access to new high value opportunities by taking advantage of the present period of constrained liquidity in the markets.
In order to take advantage of the Company’s broad experience in bringing projects through feasibility and development, the Company is also pleased to announce the appointment of Ian Graham as President of Discovery Harbour. Ian is an accomplished mining professional with over 20 years of experience in the discovery, evaluation and development of mineral deposits. Ian joins Discovery Harbour from Rio Tinto, where he was previously Chief Geologist with the Project Generation Group. Throughout his career, Ian has been involved in the evaluation, exploration, and development of numerous advanced stage projects in North America and abroad including the Diavik Diamond Mine (NWT, Canada), Resolution Copper (Arizona, USA), Eagle Nickel (Michigan, USA), Lakeview Nickel (Minnesota, USA), and Bunder Diamonds (India). Prior to his career with Rio Tinto, Ian held exploration geologist roles with Anglo American.
Mr. Graham resides in Vancouver and is the former chair of the University of British Columbia’s Mineral Deposit Research Unit. Ian will lead Discovery Harbour to identify and acquire properties that merit the group’s financial involvement, and to develop a pipeline of projects to sustain the company’s growth. He will be joined by Patricio Varas, Buddy Doyle, Patrick Power, David Hodge and Troy Nikolai on Discovery Harbour’s Board of Directors.
As of the end of the second quarter, March 31, 2009, Western Potash had cash and cash equivalents of approximately C$30 million which will sustain its planned and anticipated potash exploration programs through 2011 and provide Discovery Harbour with its initial funding. Discovery Harbour may also seek to fund its endeavours through envisioned private and public financing offerings.
The Company also reports that Discovery Harbour has participated in a private placement of a private junior exploration company with primary assets in Mexico. The Company via Discovery Harbour has acquired 3,750,000 units of La Camera Mining Inc. (“La Camera”) at a price of $0.20 per unit.
La Camera Mining Inc. (“La Camera”) is a private junior gold company operating in the Guerrero Gold Belt of central Mexico. The company controls a 17,000 hectare land package that is adjacent to, and in places surrounds Goldcorp’s Los Filos gold mine. The Los Filos mine is currently the largest gold producer in Mexico and is expected to produce over 300,000 ounces annually by 2010.
La Camera's property hosts an historic gold resource and encompasses numerous exploration targets with multi-million ounce potential. La Camera is contemplating going into small scale production, to advance its assets non-dilutively, and is in discussions with several major mining companies that are interested in entering into strategic arrangements with the company.
This transaction was made by the Company for investment purposes following the inception of Discovery Harbour.
About the Companies
Western Potash Corp. is a mineral exploration company engaged in the evaluation, exploration and development of potash mineral properties in Western Canada. Western Potash intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.
Discovery Harbour Resource Corp. is a wholly owned subsidiary of Western Potash. Discovery Harbour seeks to invest in, acquire, and develop advanced stage high value mineral projects that require capital raising, as well as, technical and corporate management support, to succeed.
ON BEHALF OF THE BOARDS OF DIRECTORS
Western Potash Corp.
Discovery Harbour Resource Corp.
“J. Patricio Varas”
This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include that Discovery Harbour, will provide shareholders with access to new high value opportunities; that Discovery Harbour can identify and acquire properties that merit the group’s financial involvement and develop a pipeline of projects to sustain the company’s growth; that La Camera's property hosts exploration targets with multi-million ounce potential; that La Camera may go into small scale production, to advance its assets non-dilutively ; and that Western Potash intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner. We have assumed that indications as currently known to the Company will continue to be positive. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access to projects of merit, market conditions, mineral prices, success or failure of the exploration and development carried out at various stages of our work programs, and the fact that there may not be an economic or commercial resource on any properties in which we invest. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company. It is not our policy to update forward looking information.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.