Sustainable Recycled Water Source Secured for Milestone Potash Project
Western Potash Corp. (WPX: TSX) (FSE: AHE) ('the Company?) is
pleased to announce that, further to its press release dated June 26,
2012, a Definitive Agreement with the City of Regina was signed on
November 26th securing the long term, economical and reliable
source of process water for the Milestone Potash Project ('the
Project?). Under the agreement the Company will have access to 60,000
cubic metres per day of treated effluent for the first 6 years and
42,240 cubic metres for the remaining 39 years. This amount is
sufficient to satisfy the requirements for the solution mining process
during the entire life of the mine.
As part of the execution of the Agreement, Western paid the City of
Regina a $500,000.00 Commitment Fee. Annual payments to the City of
Regina will be worth more than $200 million throughout the Agreement′s
term. The Company will fund the construction of the pipeline and
associated infrastructure to deliver the effluent to the mine site
located approximately 30km southeast of Regina. The diversion of
effluent from southern Saskatchewan′s watershed will produce a net
environmental benefit, while creating economic growth for the Province,
making this partnership a true 'win-win? for both parties.
'This mutually beneficial agreement is another step towards Regina′s
vision of a sustainable community,' said Regina Mayor Michael Fougere.
'The City of Regina will be compensated for treating a waste product
while helping facilitate economic growth in one of Saskatchewan′s key
sectors ? potash development. In addition, downstream negative effects
such as increased algae will also be alleviated, making this is a prime
example how creative thinking and partnerships can yield a more
promising future for everyone.?
'Executing the Definitive Agreement with the City of Regina is a
critical deliverable in progressing the Milestone Project,? says Western
Potash Corp. President and CEO Patricio Varas. 'Securing a long term,
reliable water supply is a key component of the Feasibility Study and
crucial to advancing the project on schedule.?
The Milestone Feasibility Study is now drawing to a close with a
completion date set for late November 2012. In addition, Western Potash
Corp. remains involved in ongoing negotiations with numerous parties,
any of which could lead to equity and debt financings, joint ventures,
takeovers or other types of merger transactions to advance the
development of the Milestone project.
About Western Potash
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 develop a world-class potash
deposit in an ecologically sustainable, economically efficient and
socially responsible manner. For more information on Western Potash
Corp.′s projects, please visit the Company′s website at: http://www.westernpotash.com.
ON BEHALF OF THE BOARD OF DIRECTORS
'J. Patricio Varas?
J. Patricio Varas
President and CEO
Forward-Looking Statement
Western Potash cautions the reader that there is no guarantee that any
of the matters set out above, including the future payments and planned
construction set out in the Recycled Water Source Agreement (the
'RWSA?), will be completed, or that the material terms and conditions of
the RWSA will be met. Except for statements of historical fact relating
to Western Potash, certain information contained herein constitutes
'forward-looking information? under Canadian securities legislation.
Forward-looking information includes, but is not limited to, statements
with respect to the RWSA and the Milestone Feasibility Study, timelines
for completion of various steps related to the foregoing; and the
ability of Western Potash to develop the Milestone Project. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as 'intends? or 'anticipates?, or
variations of such words and phrases or statements that certain actions,
events or results 'may?, 'could?, 'should?, 'would? or 'occur?.
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made and they are subject
to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements
of Western Potash to be materially different from those expressed or
implied by such forward-looking statements or forward-looking
information, including: the receipt of all necessary approvals; the
ability to conclude a transaction; uncertainty of future production,
capital expenditures and other costs; financing and additional capital
requirements; the receipt in a timely fashion of any further permitting
for the Milestone Project; legislative, political, social or economic
developments in the jurisdictions in which Western Potash carries on
business; operating or technical difficulties in connection with mining
or development activities; and the risks normally involved in the
exploration, development and mining business. Although management of
Western Potash has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements or forward-looking information, there may be
other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements and
forward-looking information. Western Potash does not undertake to update
any forward-looking statements or forward-looking information that is
incorporated by reference herein, except in accordance with applicable
securities laws.
Western Potash Corp.
John Costigan, (604) 689-9378
VP
Corporate Development
