Western Potash Corp. has confirmed that UBS Securities Canada Inc. has filed a lawsuit against the company before the Ontario Superior Court of Justice, the Vancouver-based junior mining company said in a press release Wednesday.
UBS is “claiming fees, disbursements and damages in connection with a strategic investment in the company by China BlueChemical Ltd., and GUOXIN International Investment Corp. Ltd., through a wholly owned subsidiary, CBC (Canada) Holding Corp., which closed in June 2013,” the release said.
The company believes that the “UBS lawsuit is unfounded and entirely without merit, and intends to vigorously defend itself against the lawsuit,’’ said Patricio Varas, president and CEO of Western Potash.
Two years ago, Western Potash Corp. announced the closing of a $32-million investment by China Blue Chemical Ltd., and Benewood Holdings Corp. through a joint venture company, CBC (Canada) Holding Corp. (CBCHC), for a 20 per cent ownership stake in Western, which is traded on the TSX under the symbol WPX.
China Blue is a majority owned subsidiary of China National Offshore Oil Corp. (CNOOC), while Benewood is a wholly owned subsidiary of GUOXIN International Investment Corp. Ltd., a financial investment company registered in Hong Kong. Western and CBCHC agreed to the purchase of 30 per cent or one million tonnes of potash annually from Western’s Milestone potash project for a term of 20 years.
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