Afar...You Better Remove the...... Rose Coloured Glasses....your article is not very optimistic on further progress with financing!!!!
-It does not change the fact that the company is facing a massive financing burden.
-Western’s Milestone project in Saskatchewan has an estimated capital cost of US$3.3-billion, an enormous amount for a junior miner with a market value of $118-million. The stock has been punished even worse than many of its peers amid doubts about the company’s ability to raise the money.
-Others are not convinced this deal is a stepping stone to a massive financing package.
-Joel Jackson, an analyst at BMO Capital Markets, argued that all the deal does is provide the Chinese firms with some optionality to potash prices at a low cost. If they were more serious about the sector, he thinks they would have made a bigger investment in a more advanced project.
-Our view is that this is a political decision that checks the checkbox [in China],” he said. “We don’t expect much progress to be made over the next few years.”