Western Potash completes IPO, raises C$20 M

Vancouver-Western Potash Corp. said May 6 that it has successfully completed its initial public offering, comprising 18,185,000 common shares at an issue price of C$1.10 per share, for gross proceeds of C$20 million. Upon closing of the IPO, the company’s common shares began trading on the TSX Venture Exchange under the symbol WPX. The offering was led by Wellington West Capital Markets Inc., with a selling syndicate that also included Canaccord Capital Corp. and Genuity Capital Market. The agents were also granted an option to purchase up to 15 percent of the common shares at the price of C$1.10. The option can be exercised in whole or in part, within 30 days of the closing date, to cover over-allotments, if any. The company intends to use the net proceeds of the offering to advance its Manitoba potash properties, where multi-phased, drill, and seismic exploration programs have been planned to expand and define the extent of potash mineralization described in the company’s recently filed National Instrument 43-101 technical report. Funds will also be used for general working capital. Western Potash Corp. is a mineral exploration company engaged in the evaluation, exploration, and development of potash mineral properties in Western Canada. The company intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient, and socially responsible manner. In the meantime, Pinetree Capital Ltd. said May 6 that after the Western Canada IPO it owned 6,810,000 common shares of Western Potash and 6,000,000 common share purchase warrants. In the event that the warrants are fully exercised, these holdings represent approximately 13.3 percent of the total issued and outstanding common shares of Western Potash as of May 6, 2008, calculated on a partially diluted basis assuming the exercise of the warrants only. Should Pinetree and its joint actors exercise all of the convertible securities, their combined ownership would represent a total of 19,855,000 common shares of Western Potash, or approximately 19.8 percent of shares.