Milestone Phase 1 Project Stage 2 Construction Delayed to Year End
VANCOUVER, British Columbia, May 14, 2020 (GLOBE NEWSWIRE) -- Western Resources Corp. (TSX: WRX) (FSE: WR0) (“Western” or “the Company”) announces that Western Potash Corp., the company’s wholly-owned subsidiary, is delaying completion of construction for the balance of the Milestone Phase 1 Project (“Phase 1 Project”) process plant from July to the end of this year.
The Phase 1 Project is already 83% complete in the overall status. It has completed engineering, procurement, construction of infrastructure, crystallization pond, electrical distribution systems, brine heating and pumping systems to support operation of commercial solution mining. A significant portion of the balance of plant including the Process Plant, Compaction and Loadout has also been constructed, with only limited equipment still to be delivered and installed. The unfinished portion does not affect the on-going solution mining operations.
Unfortunately, the COVID-19 pandemic has caused economic issues on a global scale and as a result delayed our ability to complete the final tranche of funding as previously planned; this has slowed down our ability to complete construction for the balance of the plant. The Company continues working with potential investors to complete the final tranche of funding, as well as pursuing alternative sources of financing for the completion of the remaining construction. Nevertheless, the Company will continue the operation of full-scale hot mining to consistently build up inventory of potash in the crystallization pond, getting ready for harvesting by the end of the year.
Western Potash Corp. CEO and President, Fritz Venter, said, “I would like to stress that WPC is fully committed to completing this exciting and innovative project. We have already demonstrated that solution mining using horizontal drilling works and completed an impressive amount of the construction of the processing plant. We will continue to work closely with all stakeholders during this time. Once funding is confirmed we will re-start construction. We have full confidence in the ultimate success of the Phase 1 Project”.
About Western Resources Corp.
Western Resources Corp. (TSX: WRX) (FSE: WR0) (“Western” or “the Company”) and the company’s wholly-owned subsidiary Western Potash Corp. are constructing Canada’s newest and most innovative, environmentally friendly and capital-efficient potash mine. This will be the first potash mine in the world that will leave no salt tailings at the surface, thereby reducing the water consumption by half as well as significantly improved energy efficiency. The Phase I Project is expected to be completed and moves into production by the end of 2020, which will form the basis for further expansion.
For more information on the Project, please refer to: www.westernpotash.com, Tel: 306-924-9378.
Cautions Regarding Forward-Looking Statements
Except for statements of historical fact relating to the Company, 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 filing and results of the Technical Report. 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 of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in 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 information. The Company does not undertake to update any forward-looking information that is set out herein, except in accordance with applicable securities laws.
