Western Potash Resolves Issues With Bird Construction On Milestone Phase I Project

Western Resources Corp. WRX WTRNF subsidiary Western Potash entered into a cost-reimbursable construction services agreement with Stuart Olson Prairie Construction Inc., a subsidiary of Bird Construction Inc BDT BIRDF, as general contractor to continue the bulk of the remaining construction work for the Milestone Phase I Project.
Project construction was put on hold in May 2020 when the process plant was ~50% complete.
The new agreement resolves all prior outstanding issues between Western and Bird and establishes a new time & material-based contract to complete the remaining Project work.
Bird will begin mobilization in early June, with an anticipated maximum workforce of around 100 people expected at the site. Construction is expected to be completed by Q2 2023, followed by three-month general commissioning, with production to start in Q3 2023.
Western has made a cash payment of C$14 million and will issue 10 million warrants as part of the settlement for debt previously owed to Bird.
Bird, after exercise, will acquire up to 10 million Western common shares, representing a 5.34% stake.
Price Action: WRX shares are trading higher by 7.14% at C$0.38 on TSX on Tuesday's last check.