Western Potash and China Blue seal the deal
China BlueChemical and Benewood Holdings have completed their equity investment of $32 million into Western Potash, the company behind the giant Milestone project.
NEWS RELEASE: Vancouver, June 20th, 2013 – Western Potash Corp. (“Western” or the “Company”) is pleased to confirm that the previously announced strategic investment by China BlueChemical Ltd., (“China Blue”) and Benewood Holdings Corporation (“Benewood”), through a joint venture company, CBC (Canada) Holding Corp. (“CBCHC”), has been completed (the “Transaction”). Western has issued to CBCHC approximately 45 million common shares at a price of $0.71 for proceeds of C$ 31,979,022, which represents a 19.9% ownership stake in the Company on a non-diluted basis. China Blue is a majority owned subsidiary of China National Offshore Oil Corporation (“CNOOC”) and Benewood is a wholly owned subsidiary of GUOXIN International Investment Corporation Limited (“GUOXIN”), a financial investment company registered in Hong Kong.
Pursuant to the subscription agreement for the Transaction dated June 1, 2013, as amended June 20, 2013 (together, the “Subscription Agreement”), CBCHC received a right to appoint one Board of Directors nominee and consequently, Mr. Yang Yexin is welcomed to Western’s Board of Directors (the “Board”). Mr. Yang has been an Executive Director & Chief Executive Officer & President of China Blue since 2006. He joined the CNOOC group in 1978 and served as a mechanical engineer and as the deputy head of the mechanics division of China Offshore Oil Southern Drilling Company, the deputy general manager of CNOOC Nanhai West CPEC (Shekou) Company; the general manager of CNOOC Shipping Company and other various positions in the CNOOC Group. Mr. Yang graduated from Wuhan Communication Technology University in 1978 with a major in Vessel Engineering and obtained a Master’s degree in Business Management from China University of Petroleum (Beijing) in 2004.