Western Potash (WPX) weighs M&A options

It's just a matter of time before Western Potash Corp. is gobbled up by a potash-hungry major mining company, according to investment industry analysts who follow the global fertilizer industry. But the tiny Vancouver-based potash development company is in no hurry. Company spokesperson John Costigan says Western Potash is still moving aggressively forward with its plans to become a potash producer at its Milestone deposit in potash-rich Saskatchewan. And management won't consider any takeover offers until the marketplace assigns the company a valuation that is comparable or superior to Potash One Inc.. Last month, Potash One accepted a buy-out offer valued at $434 million or $4.50 a share from the European fertilizer heavyweight K+S Group following the long-awaited publication of a full feasibility study on its Legacy deposit. The pending Potash One takeover leaves Western Potash as the “last man standing,” according to Costigan. By which he means that it's now the only one left of Saskatchewan's tiny handful of potash explorers that has a firm grasp on the size and economic potential of its potash assets. The only other potash junior in the region that also benefited from a resource estimate (which was still at the pre-feasibility stage) was Athabasca Potash Inc. It was acquired by the world's largest mining company, BHP Billiton Ltd. BHP, last March in a deal worth $341 million or $8.35 a share. Continue reading the article.