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Western Potash (TSX:WPX) finalized its previously announced strategic investment with China BlueChemical and Benewood Holdings though joint venture company CBC Canada Holding Corp.
Western Potash (TSX:WPX) finalized its previously announced strategic investment with China BlueChemical and Benewood Holdings though joint venture company CBC Canada Holding Corp. Through the investment, CBCHC now holds a 19.9% non-diluted ownership in Western.
As quoted in the press release:
Upon completion today of CBCHC’s strategic investment and pursuant to the Subscription Agreement, the parties will form and jointly staff three working committees within 30 days. A Technical Committee and a Finance Committee will be formed, both of which will be made up of three members from Western and three members from CBCHC. In addition, the Chief Executive Officer and an individual holding a senior management position in each of the Parties will form a Supervisory Committee.
Mr. Patricio Varas, President and CEO of Western commented:
After two years of working together with China Blue we have reached what we believe is a comprehensive strategic investment as it strengthens our financial position and provides a vision for the path forward. The Transaction has involved a significant amount of due diligence and long hours of work from both our teams. We are very happy to welcome Mr. Yang to the Board and we will definitely benefit from his extensive plant building and operating experience both at China Blue and CNOOC. In addition, Mr. Varas stated, “With the Subscription Agreement, I believe CBCHC and Western have created a formidable alliance and we can now look to completing the work already underway in arranging and putting together the financial pieces that will make the building of the Milestone Project a reality.