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Western Potash Corp. (WPX) is engaged in the acquisition, evaluation, and exploration
of potash mineral properties in western Canada. The company's focus is on the
development of a potash mine on one of its three exploration properties in Canada:
two conventional mining projects in Manitoba and a solution mine in Saskatchewan. The
company also has potash and other mineral exploration interests in Australia, Brazil,
and Mexico. CEO: Patricio Varas. Insider ownership (FD basis): ~12.3%.
Business Mix (Based on revenues unless otherwise noted)
100% potash exploration and development
Comparable Companies (TSX unless otherwise noted)
KRN, MAA, AAA.V, IPC, EPO.V
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Recent Update Text as of 1OCT12
WPX announced a $15M non-brokered private placement consisting of 31.25M units
at 48¢/sh, with each unit consisting of one common share and one warrant
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exercisable at 58¢/sh within 36 months. With WPX approaching its cash buffer, and the appetite for junior potash
development companies dwindling, we had recently written that a raise in the
form of a private placement was imminent. A $15M capital injection should see
WPX through the completion of a FS by year-end, as well as permitting shortly
thereafter.
. We continue to believe that strategic investors and/or partners are the most
practical and likely source of project equity for Milestone. We think it is
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unlikely that a substantial investment will be made in the next six months. We expect WPX's delivery on the remaining operational milestones (FS and
permitting) to provide a catalyst for mgmt to re-ignite discussions with
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potential equity and debt providers. We maintain our one-year target price of $1.00/sh, and to 2-SP rating.