Vancouver — Western Potash Corp. confirmed June 3 that UBS Securities Canada Inc. has filed a lawsuit against the company before the Ontario Superior Court of Justice claiming fees, disbursements and damages in connection with a strategic investment in the company by China BlueChemical Ltd., and Guoxin International Investment Corp. Ltd. through a wholly-owned subsidiary, CBC (Canada) Holding Corp. (CBCHC), which closed in June 2013. Western Potash said it believes the suit is unfounded and entirely without merit, and intends to vigorously defend itself against the lawsuit. In 2013, Western has issued to CBCHC approximately 45 million common shares at a price of $0.71 for proceeds of C$31,979,022, which represented a 19.9 percent ownership stake in the company on a non-diluted basis. China Blue is a majority owned subsidiary of China National Offshore Oil Corp. Earlier, Western and CBCHC signed an off-take term sheet whereby CBCHC or a purchaser designated by it will enter into an off-take agreement for the purchase of the lesser of 30 percent or 1 million mt/y of potash from Western’s Milestone potash project for a term of 20 years. Pricing of product sold under the agreement will be based on market terms.
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