Vancouver-Western Potash Corp. is planning to raise up to $40 million under a private placement offering slated to close on or about Dec. 14, 2010. Mackie Research Capital Corp. and Scotia Capital Markets Inc. are the underwriters. The company will make an application to list its common shares for trading on the Toronto Stock Exchange within 30 days of closing, but it notes that there is no assurance that such an application will be approved by TSE. The proceeds of the sale will be used to advance the company’s Milestone Potash Development Project located in Saskatchewan, and for general working capital purposes. The company said it is trying to determine the appropriate course of action for fast-tracking the project. It recently retained Lockwood Financial of Montreal to assist it in this endeavor. Alternatives currently under review include various combinations of debt and equity financing designed to fund capital requirements for pre-feasibility, feasibility, and development work. The company said it is also in discussions with third parties who have expressed significant interest in participating in the company and the project on a basis which may include, but is not limited to, equity and debt financings, joint ventures, takeovers and other types of mergers, or “going private” transactions. A preliminary economic assessment of the project, supported by an NI 43-101 compliant technical report dated July 12, 2010, indicated that the 41 million mt of measured resource (contained KCl), 133 million mt of indicated resource, and 560 million mt of inferred resource is of sufficient size and grade to support a potash solution mining operation for more than forty years at a production rate of 2.5 million mt/y. The Milestone property is comprised of 500 square kilometers and is located 30 kilometers southeast of Regina and southeast of Mosaic’s Belle Plaine Mine.
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