Western Potash Corp. (TSX:WPX, FSE:AHE) announced that they have enlisted UBS Securities Canada Inc. to assist them in the evaluation of financing alternatives for its Milestone property in southern Saskatchewan.
As quoted in the press release:
The Company is pleased to announce the receipt of an updated NI 43-101 Technical Report titledNI 43-101 Technical Report Summarizing the Feasibility Study for a Potash Solution Mine on the Milestone Project. The Company confirms that this Report was filed on SEDAR on January 18, 2013. The Technical Report includes an updated reserve and resource estimate, and a summary of the Feasibility Study that was summarized via news release dated December 6, 2012. The Study confirmed that the asset is of sufficient size and grade to support primary and secondary potash solution mining for more than 40 years at an ultimate production rate of 2.8Mt/yr. The Study reports an after-tax project Net Present Value of $2.44B CAD, with an Internal Rate of Return of 18.6 % assuming a nominal discount rate of 10%.
Western Potash’s President and CEO, Patricio Varas, said:
Now that the Company’s Feasibility Study for the Milestone Project has been released, our focus is on identifying and reviewing various alternatives in order to secure the financial commitments required to proceed with the Project, including mine construction. We believe Milestone is a compelling project that’s attracting global attention. UBS brings considerable experience in arranging and structuring financial solutions for companies with major capital-intensive projects.