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WESTERN POTASH CORP T.WPX

"Western Potash Corp is engaged in the acquisition, evaluation, and exploration of mineral properties containing potash in Western Canada. The Company holds interests in the Milestone Project located in Southern Saskatchewan."


TSX:WPX - Post by User

Bullboard Posts
Comment by edxon Jan 31, 2013 2:29am
288 Views
Post# 20915754

RE: I think I figured It out.....

RE: I think I figured It out.....

I'm not invested in WPX, but this is exactly the scenario Costigan relayed to me when I spoke to him at length, in person.

WPX wants one partner that can take _all_ the output, period. In exchange, they want _all_ the CAPEX from that partner.

Of course we spoke (in person) in June 2012 and it seems there's not been a lot of luck finding a partner since that time. In the end, I didn't invest in WPX because the long-term supply-demand forecast for potash is not favourable for producers and for me, the CAPEX presented a risk I wasn't willing to take.

On paper this is a stellar project and if the BFS was out 3 years ago, this would have assuredly made everybody invested obscene amounts of money. Today? Perhaps it will yet, but the project is outside my risk tolerance so I'll watch from the sidelines.

Bullboard Posts