Western Resources Corp T.WRX

Maybe they are trying to tie up loose ends

[mdjbrown]

Not 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.

[classicact]

"$35,000,000 was advanced from the Credit Facility Agreement. None of the Advanced Amount was repaid as of March 31, 2020." Bieng as this is just a loan and not an actual investment in the company by the major shareholder they can also call it in when the term expires. If they do, the writing is on the wall that this was orchestrated by the majors to buy back the entire mine and all

[mdjbrown]

classicact, that information can be found in the last corporate financials / MD&A reported May 15, 2020 on SEDAR  -  Page 15 under "other" Quarterlies should be due out any day now, so it will be interesting to see if those obligations have changed in the past 3 months. Hope we get some kind of a positive update on financing progress soon. Hard to move forward when so

[classicact]

Thanks mdj, I agree, they pretty much have only two really important things to talk about, how the mining operation is doing and financing. I hope they cover both issues in depth.

[mdjbrown]

You are very welcome classicact Q2 Financials should be out this week, so hopefully they provide the ops update and financing progress everyone is wondering about

[jonathanRdeC]

these stupid asses invested in real estate and didn't keep the money for the project. Now money is tied elsewhere... what bad management

[mdjbrown]

It sure would be nice to see a spin out of the potash assets from the real estate side of things,  jonathanRdeC. The folks at Western could be on to something huge here with the horizontal selective solution mining technology, but now it appears their wheels are spinning in the mud as a ton of money is owed for the construction to date. I really hope the Q2 financials which will likely be