https://www.miningweekly.com
Construction|PROJECT|Western Potash
Construction|PROJECT|Western Potash
construction|project|western-potash

Western Potash secures C$85m credit financing to complete Saskatchewan project

29th April 2022

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Development-stage company Western Potash on Friday announced a C$85-million term loan financing transaction with Appian Capital Advisory to enable the company to complete the remaining construction and development of the Milestone Phase 1 project, in Saskatchewan, Canada.

The loan transaction, together with an C$80-million equity investment by Vantage Chance, would provide a “huge capital injection” for Western and a solid foundation for the completion of the project, said chairperson and CEO Bill Xue.

The project has near-term production potential and is expected to begin production in the second quarter of next year, achieving run-rate production about a year later. The Phase 1 study calculates 146 000 t/y of production over 12 years.

The Appian financing comprises a six-year term loan facility of up to C$85-million at an interest rate of 12.5% a year, the grant of a 1.5% royalty based on the gross revenue of the project to Appian and issuance to Appian of 20 774 030 warrants.

Appian CEO Michael Scherb commented that the credit transaction was a strong fit with Appian’s investment mandate, providing attractive risk-adjusted returns and potential upside, supported by a robust potash asset with exposure to growing global demand for agricultural commodities.

Edited by Creamer Media Reporter

Comments

Showroom

AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.207 0.239s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: