Maybe they are trying to tie up loose endsNot sure I completely follow these recorded liabilities as reported in the last financials, as it appears almost $26 million is owed to contractors / vendors for completed construction related items.
Other:
During the six months ended March 31, 2020, Western Potash’s 100% owned subsidiary 0907414 BC Ltd. (“BC Ltd”) received total claim of lien of $6,467,616 from various vendors for fees outstanding related to the construction of the Milestone Project. The liens are made against the interest of BC Ltd, who holds the ownership of the land in which the Milestone Project is situated. As the outstanding payable amounts by the vendors have been recorded under accounts payable and accrued liabilities, no additional provision was made for this as of March 31, 2020. Subsequent to March 31, 2020, additional total claim of lien of $19,610,035 was made against BC Ltd.
I was under the impression a $40 million dollar credit facility was received in the fall of 2019 specifically for the Milestone construction.
"On September 12, 2019, the Company entered into a Credit Facility Agreement for an aggregate amount of $40,000,000 from the Company’s major shareholder (Note 12). During the six months ended March 31, 2020, $35,000,000 was advanced from the Credit Facility Agreement. None of the Advanced Amount was repaid as of March 31, 2020."
so why are there creditors taking out liens.