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Bullboard - Stock Discussion Forum 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 Discussion

WESTERN POTASH CORP > Financing
View:
Post by Zorus on Jun 02, 2013 1:12pm

Financing

The question is how the compagny will get the 2,9 billions. Imagine a financial structure 70% debt (I'm generous here)  and 30% equity. How the compagny will get the 870 millions in equity. The compagny will have to dilute a lot. They get 32 millions for 20% of the compagny. The only way they will can finance it's with an offtake agrrement on future production. For exemple, a 10-20% discount on the future spot price for 10 years for exemple 500 millions (I didn't really think about the numbers here, it is just an example).

 

Waiting for your comments.

Comment by thairat on Jun 02, 2013 2:20pm
Relax that's where the money comes from CBC Canada is a company jointly established in Canada by the Company, as a controlling shareholder, holding 60% equity interests of CBC Canada, and Benewood Holdings, holding 40% equity interests thereof. Benewood Holdings is a wholly owned subsidiary of GUOXIN International. GUOXIN International is mainly engaged in financial investment business ...more  
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