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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

     

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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

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