VANCOUVER, British Columbia, June 06, 2019 — Western Resources Corp. (TSX: WRX) (FSE: WR0) (“Western” or “the Company”) is pleased to announce that its wholly owned subsidiary Western Potash Corp. has entered into a lump-sum agreement with Stuart Olson Prairie Construction to be the General Contractor for the construction of the Company’s Milestone Phase I Potash Project (“Phase I Project” or “Project”) located 35 km southeast of Regina, Saskatchewan.
Stuart Olson (TSX: SOX, SOX.DB.A) is one of the largest and most respected construction services companies in Canada. Their unique approach to doing business, as well as extensive construction and industrial services proved a perfect partner for the project. Founded over 100 years ago in Western Canada, Stuart Olson has offices across Canada and will be drawing a large proportion of their trades from the local area.
The Western Phase I Potash Project will be the newest and most innovative, environmentally friendly and capital efficient new potash mine in Canada. By utilizing advanced drilling techniques, the project will be able to initially target the high-grade potash bed, then by using selective dissolution, preferentially leach the potash to the surface. This means that any salt is left underground and there is no tailings pile at the surface, thereby reducing the water consumption by half. The potash is then crystalized naturally in a pond due to the temperature change, resulting in much lower energy consumption and a capital cost proportionally less than other solution mines. The project has already completed the early work to prepare the site including an access road, site clearing and piling foundations, water well, water pipeline and power infrastructure. The civil work of the crystallization pond has also been completed. The site is now ready for the start of full construction with Stuart Olson.
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 work and site finishing. Stuart Olson will mobilize to the project site in June 2019, with an anticipated maximum workforce of around 100 people on site. With their heritage in Western Canada and diverse experience, they have the skills, experience and resources to complete the project safely on budget and schedule.
Mr. Bill Xue, Chairman of Western Potash, commented, “the management and Board of Directors are very excited to partner with Stuart Olson to build this innovative and efficient new mine in Saskatchewan. The project will benefit from the strength and experience of Stuart Olson, and we look forward to the next milestone, the start of production in mid 2020.”
Bill Xue President & CEO Western Resources Corp.
The content of this news release has been read and approved by Gregory F. Vogelsang, P.Eng., P. Geo., FGC, FEC 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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2f6a8868-936c-48c0-91d9-1777af757045.