RE:RE:What next?You are welcome bmw
Unfortunately the news article does not dig deep enough into the real estate transactions that took place once the Company changed names from Western Potash to Western Resources.
That appears to many to be the real concern here as tens of millions of dollars intended for mine development was rerouted into BC real estate.
In addition, dont forget, not that long ago Western announced a $40 million dollar Credit Facility of which $35 million has since been drawn.
They also sold / transferred Milestone leases to raise I believe close to $10 milion ish dollars
Apparently not to pay contractors
I am looking forward to the next financials reporting any real estate asset amounts recovered through the liquidation of those investments, as it wouldnt surprise me if at the end of the day, $100 million was used to fund these real estate investments, and only a fraction of that money could be recovered.
The one really troubling fact is real estate prices in BC have increased dramatically yoy so how did these investments not multiply by several times?
Makes you wonder if Stuart Olsens reported take over by Bird had anything to do with the many millions owed to them.
Someone needs to answer for this collossal mess, and an RCMP investigation is certainly warranted as it would appear the majority of the mine was built on credit leaving many local vendors out of pocket at a time when no one can afford to be short changed. A third party forensic audit is likely required to get to the deep root of the problem
Even if this issue is resolved to the local vendors satisfaction, it is unlikely any credit will be extended by any contractors moving forward, so I hope Western can raise the entire cash amount required not only to pay all the outstanding debt owed, but also the full amount to finish the mine.
After this debacle, I cant imagine anyone feeling comfortable without anticipated funds for work perfomed being locked up in escrow.
Amazing how things can change when a decade ago they looked rock solid
https://im-mining.com/2010/12/07/western-potash-weighs-merger-and-acquisition-options/