Appian Signs Credit Financing Transaction with Western Potash

Appian Capital Advisory LLP announces that it has entered into a C$85,000,000 term loan facility financing transaction with Western Potash Corp., the wholly owned subsidiary of Western Resources Corp.

Proceeds of the Credit Transaction will enable Western Potash to complete the remaining construction and development of the Milestone Phase I Project, Western Potash's MOP potash project located in Saskatchewan, Canada.

The Credit Transaction is comprised of the following, with funding subject to customary terms and conditions:

1.  A six-year term loan facility of up to USD equivalent of C$85,000,000, at an interest rate of 12.5% per annum;

2.  The grant of a 1.5% royalty based on the gross revenue of the Project to Appian; and

3.  Issuance to Appian by Western Resources of 20,774,030 warrants, allowing Appian, after exercise, to acquire up to 9.9% of Western Resources' issued and outstanding common shares. The exercise price is at a 25% discount to the 5-day VWAP on April 28, 2022, the execution date of the Facility Agreement.

The Credit Transaction is a strong fit within Appian's investment mandate, providing attractive risk-adjusted returns and alignment with Western Resources through royalty and warrant upside, while maintaining downside protection through a senior secured position.

It provides Appian with upside exposure to the potash commodity market through the royalty and any future production expansions through the warrants package.

Michael W. Scherb, Founder and CEO of Appian, commented: "Appian is delighted to be supporting Western Resources to develop the Milestone Phase I Project. This transaction demonstrates the continued success of our dedicated credit and royalties offering, highlighting our ability to invest through the capital structure and provide non-dilutive financing for mining companies. The value that our market-leading technical team brings is also a key differentiator, with our expertise helping project owners to maximise potential and returns.

This is a strong fit with Appian's investment mandate, providing attractive risk-adjusted returns and potential upside, supported by a robust potash asset with exposure to growing global demand for agricultural commodities."