Formation of US subsidiary, Sage Lithium Corp In developing the largest potash deposit in the US near pilot production with an impressive inferred resource of 279.5 million ton potash (over $18 billion Insitu valuation), Sage Potash (SGPTF SAGE.v) is focused on establishing a domestic supply of potash in the US to reduce dependence on imports which currently fulfill 94% of the nations potash needs.
Today, Sage has announced the formation of a US subsidiary, Sage Lithium Corp, to explore additional potential revenue sources known to occur within the Paradox Basin as multi-commodity brines with high Li-K-Br reported from historic oil and gas wells in the area.
Operating as a standalone subsidiary exploring the mineral leases or lithium and other soluble saline minerals on 17,277 acres of private mineral and surface leases, the primary objective of this subsidiary will be to conduct testing within the existing brine hosting strata covered by Sage's private mineral lease portfolio.
This is a strategic decision for Sage, based on their assessment of historical records derived from oil, gas and potash wells drilled in the Paradox Formation which indicate a strong possibility of intersecting super-saturated brines containing a diverse range of valuable minerals, including lithium, bromine and potassium.
Sage Potash CEO, Peter Hogendoorn, commented:
"Using SQM (Sociedad Quimica y Minera de Chile S.A.) as a model, which can be considered either the world's lowest cost lithium producer or potash producer, management believes there is a significant opportunity to leverage both the geology and its lease rights to add considerable shareholder value for multiple complementary mineral development streams, or as an eventual company spin-off."
Posted on behalf of Sage Potash Corp.