Chinese company acquires larger stake in Western Potash to boost Milestone project development

Western Potash executives on stock exchange floor. — Photo courtesy Western Potash Facebook page.

Business in Vancouver reporter Nelson Bennett is reporting that, “A subsidiary of China's state-owned energy giant, CNOOC, is taking a $32 million stake in Vancouver-based Western Potash Corp. (TSX:WPX) to help develop a new potash mine in Saskatchewan."

China Blue Chemical Ltd. and Hong Kong-based Benewood Holdings Corp. Ltd. are partnering on a strategic equity investment in Western Potash. The partners will buy 45,040,876 common shares at $0.71 per share.

China Blue is a subsidiary of China National Offshore Oil Corporation (CNOOC). China Blue's investment in Western Potash will be used to help develop the company's new potash mine near Milestone.

The recent deal marks CNOOC's second major investment in Western Canada this year. Earlier this year, CNOOC bought Nexen Inc. (TSX:NXY) for $15 billion.

Nexen is based in Alberta but jointly owns 300,000 acres worth of natural gas leases in the Horn River and Cordova basins of Northeastern B.C.

Source: Business in Vancouver