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Western Resources Corp T.WRX

Alternate Symbol(s):  WTRNF

Western Resources Corp. is a resource company. The Company is mainly focused on the development of its Milestone potash project (the Milestone Project) in Canada owned by its subsidiary, Western Potash Corp. (Western Potash). The Company owns a 100% interest in the Milestone Project located in the province of Saskatchewan under various property leases. The Milestone Project includes approximately 84,557 acres of Crown held mineral leases and 65,305 acres of acquired freehold leases. The Company is constructing Phase I of the Milestone Project. The Company also invested in real estate development projects in the Greater Vancouver Area through limited partnerships. The Company completed the drilling of 11 potash exploration wells on project property, completed several hundred-line kilometers of 2D seismic study, and conducted a 3D seismic study during the project exploration program. The Company has no mineral production that yields any revenue.


TSX:WRX - Post by User

Comment by mdjbrownon Jul 28, 2021 9:12am
247 Views
Post# 33615808

RE:Not sure what to make out of this news

RE:Not sure what to make out of this newsAgreed B41

This latest press release is confusing at best as it gives no real projections.

Exactly how much is owed to creditors and what is the value of the real estate assets?

This has the feel of hey we brought $80 million to the Western Potash  table, moved that cash to Vancouver real estate ventures, then took out a $40 million dollar credit facility, and used very little of that cash to advance the Milestone phase 1 potash project.


Instead the majority of the project was built on credit in which we still owe $10s of millions.


It is concerning, as how much money is needed to cover the liabilities outstanding, when I recall reading somewhere the real estate assets value was in the $30 million range?

More than $100 million in, and $30ish million out is not a great return on investment in anyones books, so who is responsible for this oversight?

If I am not mistaken, construction creditors are owed $40ish million, and the majority used outstanding credit facility is $40 million

Even if they can pull a rabbit out of a hat and get all the outstanding bills squared away, how many of these once burned specialized construction outfits will demand cash up front to continue 

Quarterly Financial are due out next week, so maybe that can shed some light on this monumentous task ahead.          Interesting times ahead for sure!


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