WESTERN POTASH CORP T.WPX

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Western Potash Signs Letter of Intent with China BlueChemical Ltd. for an Off-Take Agreement at the Milestone Potash Pilot Project

09/02/2017

Western Potash Corp. is pleased to announce that the Company has signed the Letter of Intent (“LOI”) with China BlueChemical Ltd. The non-binding agreement outlines the intention to proceed with negotiations for the future purchase and sale of potash product from the Company’s Milestone Pilot Project located in southern Saskatchewan.

The agreement contemplates the sale of up to 145,000 metric tonnes of potash annually. It is proposed that the Company would enter into a 10-year supply agreement in the event that a binding Off-Take agreement is concluded (pricing will be negotiated based on market prices). The LOI with China BlueChem expires on October 31, 2026.

Mr. Geoffrey Chang, CEO & Chairman of the Board comments: “The Company is pleased to be advancing negotiations with China BlueChem towards a comprehensive binding agreement. In the meantime we will also explore opportunities with other potential buyers targeting alternative Asian markets and industrial level potash products. Such agreements are a critical step in securing a market for a range of potash products that could be produced from the Milestone project”. 

China BlueChem and Benewood Holdings Corporation Limited currently hold a 10.1% position in the shares of Western through a joint-venture company, CBC (Canada) Holding Corp.  The current CEO of China BlueChem, Mr. Xia Qinglong sits on Western’s Board of Directors.