Western Resources Corp T.WRX

RE:RE:Operational News......or lack of

[mdjbrown]

Agreed classicact

It appears as though Western tried to juggle borrowing from Peter to pay Paul and things got a little tricky.

With all of the contractors waiting to get paid, it will be interesting to see what they come up with in getting this mine back on track to producing low cost potash.

So close, and yet it feels so far!

[hebegb1111]

Was there ever any indication of why the contractors were not paid? Many times payment is held if the job was not completed to spec. Lots of games can be played near completion, is western delinquent? Two sides to every story.

[frostback]

no mention was made of reasoning behind the holdback. Any liens that are applied should be available from the ISC database - i have not looked to confirm that actual liens have been placed. I totally agree that there may be quality issues related to the construction - common with projects of this nature, out of scope work causing disputes over change order charges and the like.

[mdjbrown]

h1111, not much in the way of particulars as to why the liens have been filed in the public disclosure on SEDAR from the corporation. It would be reasonable to conclude from the following public  disclosure that $33.8 million has been incurred to date and owed to contractors for work performed, but according to the latest financials the corporation does not have those millions to pay the

[classicact]

Thanks mdj, excellant information, wished they would provide transparency on who they sold the land to. Another Potash company, banks, major shareholder etc.. I think the answer would help us to see where this might be going.

[mdjbrown]

You are very welcome classicact It is puzzling for sure, as Stuart Olsen was announced back in June 2019 as the General Contractor when awarded the phase 1 contract.   "Stuart Olson’s general contractor scope will include the construction of all above ground facilities, including concrete, steel and pipework, installation of equipment, electrical and control system work, building

[mdjbrown]

With Stuart Olsen being taken out by Bird construction, it will be interesting to see if any of Olsens outstanding account receivables are accelerated. https://www.newswire.ca/news-releases/bird-and-stuart-olson-complete-transaction-creating-a-new-canadian-construction-industry-leader-828911791.html

[classicact]

Your right, very interesting and very concerning if that happens, there can't be too much time left for WRX to react in some way. The TSX can up and delist WRX if they are not forthcoming and timely with reporting.

[mdjbrown]

classicact, it would be very interesting to hear from the contractors who have not been paid for building this mine to the reported 83% complete.  From the unpaid contractors side of the fence it would be extremely agrivating watching a foreign controlled company operating in Saskatchewan that owes them millions of dollars for work already performed, divesting in assets for what would appear

[classicact]

"I am hearing rumors this conundrum is reaching the highest levels of government in the province, so hopefully the issues can be resolved to all parties satisfaction including the corporations shareholders." Well I hope both parties know that there are not too many people in the province that would not support assisting a late stage in development, novel and environmentally responsible

[jonathanRdeC]

sorry to ask but where is that quote coming from :)

[mdjbrown]

classicact, I think the increasing foreign ownership of Saskatchewans mining interests /  mineral control has become a topic of concern of both politicians and concerned locals. Western and several other Saskatchewan potash outfits are majority owned by the Chinese, Karnalyte is controlled by East Indian interests, and so on, and it could be argued these potash assets were secured by foreign

[frostback]

Agree, optics of recent dealings by the majority of foreign controlled juniors in this space are not very encouraging for investment confidence. As for the thought of public monies being used to prop up or support a troubled project likely is not a very palatable prospect to the taxpaying public especially as it appears the victim is suffering from self inflected gunshot wounds. Additionally the

[classicact]

No news since May 14th or 5 and a half months, this means they must have missed all requirements to report to the TSX. I think WRX could now be waiting for the TSX to provide the news that they have been delisted or a suspension of trading until further notice.  This would be the end in my opinion and again I have personally been involved in this exact scenario. If this is not the case, WRX

[mdjbrown]

classicact, it really is such a shame. So many companies feel it is good enough to respond to shareholders through quarterly mandatory disclosure, and until recently WRX was very different.   Communication was never an issue with regards to progress The fact that very little in the way of news has come from the corporation at a time when shareholders are sweating bullets is at very

[classicact]

mdj, your right, it is a total shame, at one point I was very impressed at Western's attention to shareholders. I complimented and thanked them more then once on thier Facebook page, they responded to all my questions immediately. They have gone silent which is always code for " we don't want to be on record at this point" If financing news was even plodding along they would

[mdjbrown]

Classicact, Western released Q2 financials on Aug 14, 2020 They are available on SEDAR

[classicact]

Thanks mdj, so WRX did not release the 2nd Q report on either thier website, Facebook or a news distribution vehicle? They just sent it into Sedar?  Have I got that right?

[mdjbrown]

No worries classicact I dont have facebook, instagram or any of those things so I am not sure if Q2 disclosure was reported there, but it is on SEDAR. On the Western website you can go to the Investors tab and click WRX Sedar Reports

[classicact]

Thanks mdj,  reviewed it on Sedar, still think they should be releasing through news distribution sites like they used to but thats just me.

[frostback]

Lets hope there is a "good" news release in the coming weeks. The current price of potash is very low and believe it will be tough going to raise any funding under the current circumstances. As noted prior I do not believe there is any public appetite to ail out a failing "pilot" project .... after all is not the reasoning to start with proof of concept and then move forward

[mdjbrown]

frostback, I am not so sure this stalemate is an indictment on the pilot project itself, but more so the fact that funding to complete not only the 17% remaining construction, but more so actually paying for the 83% of construction costs already completed to date has become a major conundrum. Not sure how Western can possibly complete the remaining 17% of required items on the to do list when

[frostback]

MDJB, I appreciate your well thought out analysis and agree that lack of funding indeed does not indicate technical failure of the pilot project itself. What is intriguing is all financial woes as of late combined with the land dealings you had mentioned earlier which is indicative of more trouble ahead before blue sky returns. The land deal is certainly an enigma and i do not recall reading if

[mdjbrown]

frostback, I was not able to find any info on the purchasing party other than Western's previous disclosure "Western Potash through its subsidiary 0907414 BC Ltd. (“BC Ltd”) entered into an agreement to sell the ownership of certain Phase II and Phase III vacant farm-lands (the “Property”) for gross proceeds of $8,300,000 on condition that Western Potash will repurchased the Property