With the establishment of a US subsidiary, Sage Lithium Corp, Sage Potash (SGPTF SAGE.v) is expanding its growth strategy by exploring additional revenue opportunities within its existing private mineral lease portfolio.
Operating as an independent entity, the subsidiary will be testing for lithium and other soluble saline minerals as previous drilling activities in the Paradox Formation 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."
This is a strategic decision for the company as Sage is already developing the Plains Project which is largest potash deposit in the US with an impressive inferred resource of 279.5 million ton potash ($18 billion insitu valuation).
Set to establish a domestic supply of potash in the US to reduce reliance on imports which currently satisfy 94% of the nations potash needs, anticipation is high for the Plains Project PEA which is expected in the second half of 2023, as initial projections indicate a production capacity of 50,000 tonnes per year with plans to scale up to 150,000 tonnes over a span of 20 years.
For more information on the subsidiary, check out this recap from Sage: https://www.youtube.com/watch?v=Qn2Gn-bDtyc&t=4s&ab_channel=SagePotashCorp.
Posted on behalf of Sage Potash Corp.