- Western Resources (WRX) has entered into a cost-reimbursable construction services agreement with Stuart Olson Prairie Construction, owned by Bird Construction (BDT)
- Western Resources Corp. entered into the agreement through its wholly-owned subsidiary, Western Potash Corp
- The agreement is for Stuart Olson, as a general contractor, to continue the bulk of the remaining construction work for the company’s Milestone Phase I Project
- The agreement resolves all prior outstanding issues between Western and Bird and sets a new time and material-based contract governing completion of the remaining work
- Western is a resource company focused on the development of its potash project
- At 3:43 PM ET, the share price of Western Resources Corp. was up 7.143 per cent, trading at $0.375
Western Resources Corp. (WRX) has announced a cost-reimbursable construction services agreement with Bird Construction subsidiary Stuart Olson Prairie Construction.
The agreement is for Stuart Olson, as a general contractor, to continue the bulk of the remaining construction work for the company’s Milestone Phase I Project. Project construction was put on hold in May 2020 when the process plant was approximately 50 per cent complete.
Western Resources Corp. entered into the agreement through its wholly-owned subsidiary, Western Potash Corp.
The agreement resolves all prior outstanding issues between Western and Bird and establishes a new time and material based contract governing completion of the remaining project work.
The extent of work will hinge on process plant section completion, including certain steel and pipework, completion of major equipment installation, electrical and control system completion, building and site work.
Bird will begin mobilization in early June, with a workforce of about 100 people expected at the site. Construction is expected to be completed by the second quarter of 2023, and followed by a three-month general commissioning, with production to start up in the third quarter of 2023.
In line with the agreement, Western has made a cash payment of $14 million to Bird and will cause the company to issue 10,000,000 warrants to Bird as part of the settlement for debt previously owed to Bird, which will allow Bird, after exercise, to acquire up to 10,000,000 common shares of the company.
Western is also pleased to announce that Alex Watson and Randy Lange have both joined Western and will lead its construction management team as, respectively, Project Sponsor and site Construction Manager.
“We are very grateful to BIRD for the kind understanding and strong support it has provided to Western over the past two years when the Project was in suspension,” noted Bill Xue, Chairman and CEO of the company.
Western Resources Corp is a resource company focused on the development of its potash project in Canada owned by its wholly owned subsidiary, Western Potash Corp, located in Southern Saskatchewan.
At 3:43 PM ET, the share price of Western Resources Corp. was up 7.143 per cent, trading at $0.375.
