VANCOUVER, British Columbia, Nov. 09, 2017 (GLOBE NEWSWIRE) -- Western Resources Corp. (TSX:WRX)
(FSE:WR0) (“Western” or “the Company”) is pleased to announce that its wholly owned subsidiary Western Potash Corp. and the City of
Regina (“the city”) have both agreed to the revised key commercial terms for the supply of treated wastewater from the city for the
Company’s proposed Milestone Potash Project located 35 km southeast of Regina, Saskatchewan. Regina’s City Council voted in favor
of the agreement at its meeting on October 31, 2017. The two parties are now in the process of finalizing the agreement.
In November 2012, the City and Western Potash Corp. entered into an agreement that allowed the City to provide Western with
access to recycled wastewater for a 2.8 million tonne per year conventional potash solution mine. In response to the potash
market, Western Potash adjusted the development plan and re-scoped the project to utilize the innovative “horizontal drilling +
selective solution mining” techniques that will provide a significantly reduced UNIT CAPEX and competitive OPEX. To secure
the most favorable data, Western will use this innovative technology to develop a 146,000 tonne per year capacity Phase I project.
Once the technique is tested, Western will develop the previous 2.8 million capacity project in two phases, each at a 1.4 million
tonnes potash production per year. The Phase 1 project will use groundwater from the mine site and Phase II and III projects will
use treated water from the City. The selective solution mining technology uses substantially less water than conventional solution
mining techniques, and the renegotiated agreement therefore reduces the volume of water correspondingly.
Negotiating teams worked very hard over the past six months and came up with a mutually beneficial agreement that extends the
right to access 25,000 cubic meters per day of treated wastewater until 2025, and a further 40 years access once wastewater is
drawn.
Included in the terms of the new agreement, Western has agreed to pay a commitment fee of $200,000 when the final agreement is
signed, and an annual ‘standby’ fee of $100,000 for every year that water is not drawn. When Western begins to draw water, 50% of
the standby and commitment fees paid to the City will be refunded in the form of a credit against water usage charges.
This unique agreement provides the City with an economic opportunity for revenue during the 40-year life of the agreement and
standby fees if the project does not proceed by 2025. In addition，the re-use of wastewater is beneficial in both the
reduction of use of fresh water, and eliminating wastewater from local rivers and creeks. It will also mean that the
Milestone Potash Mine will essentially use no fresh water (aside from minor potable and process requirements). Worthy of mention is
that this new technology, in addition to the reduction of water consumption, is very environmental friendly, with no more salt
tailings above ground, energy usage significantly reduced and minor subsidence.
Mr. Bill Xue, Chairman of Western Potash, commented, “we are very pleased with the terms of the new agreement with the city of
Regina and appreciate all the hard work that went into the negotiations. This agreement benefits all parties involved and has
substantial environmental benefits. We are continuing with the development of the Milestone Phase I project through the innovative
technology and will actively advance the 2.8 million tonne full-scale project. We look forward to a long-term relationship with the
City.”
ON BEHALF OF THE BOARD OF DIRECTORS
“James Moore”
James Moore
Chairman
Qualified Persons
The content of this news release has been read and approved by Gregory F. Vogelsang, P.Eng., P. Geo., FGC,
Project Manager of the Company. Mr. Vogelsang is a Qualified Person as defined by NI 43-101.
Readers are cautioned that the projected mining method, potential production profile and plan and mine plan
referred to in the Pilot Study and this release are conceptual in nature. There is no certainty that a potential mine will be
realized or that a production decision will be made.
Cautions Regarding Forward-Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein
constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not
limited to, statements with respect to the filing and results of the Technical Report. Forward-looking statements are based on the
opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results of the Company to be materially different from those expressed or
implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to
identify important factors that could cause actual results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company
does not undertake to update any forward-looking information that is set out herein, except in accordance with applicable
securities laws.
For more information on the contents of this release please contact Jerry Zhang, Corporate Secretary, at
604-689-9378.
