Source: Millennial Potash.
There are more and more people coming into the world all the time. Our population is projected increase by 2 billion people in the next 30 years, from 8 billion currently to 9.7 billion in 2050, according to a new United Nations report.
That means more mouths to feed.
This is good news for the agricultural sector, especially the potash market. As the population grows, farmland must increase crop yields. Potash is an alkaline potassium compound that is most used in fertilizers. 95 per cent of the world’s potash supply is used for growing food.
Mineral exploration company Millennial Potash Corp. (TSXV:MLP) is developing its flagship potash project in Gabon in the West Africa Potash Basin.
The Banio Permit is 1,244 sq. km. situated in the southern part of the country, approximately 50 km south of Mayumba and along the border with the Republic of Congo. This is a unique project, as it has been drilled before, but there is more in the ground and the team knows where to find it.
The project will soon see a boost in financing from the company’s recent private placement, which raised gross proceeds of $3,591,500.
Under the oversubscribed offering, the company issued a total of 7,183,000 units. Each unit consisted of one common share and one-half of one share purchase warrant and each whole share purchase warrant is exercisable for two years.
Farhad Abasov, Millennial’s Chair, commented on the successful capital raise.
“We are very excited to have closed out this round of financing. The overwhelming demand is another testament to the strong potential of our previously explored potash project in Gabon. The funds will allow us to expedite the execution of our ambitious exploration program. We thank our current and new shareholders for their solid support for the Millennial team as we are mobilizing to launch the first drilling phase shortly.” All securities issued are subject to a four-month hold period expiring on June 29, 2023.
It was only a few months prior, in February 2023, that Chairman Abasov was appointed with the goal to expedite the company’s efforts at the Banio Potash Project.
The Market Herald caught up with him at this year’s Prospectors & Developers Association of Canada (PDAC) convention to find out more about the project.
He comes to the role with extensive experience in the mining and project development sectors, with his latest success as the President and CEO of Millennial Lithium Corp. guiding the Pastos Grandes project through feasibility, pilot pond, pilot plant testwork and a successful acquisition by Lithium Americas after competing offers from Ganfeng and CATL. He brings a wealth of potash experience to the company having led Allana Potash Corp. from an exploration project through feasibility to acquisition by Israel Chemicals Ltd. in 2015. A co-founder of Potash One in Saskatchewan, that company was acquired by K+S for $470 million.
Chairman Abasov also has extensive experience in the nuclear energy sector gained through his tenure as Senior VP at Energy Metals (acquired by Uranium One for $1.8 billion) and at Atomic Energy of Canada.
Looking ahead, the company has a robust development plan for this year. In mid-April, the company announced that had made significant progress in its mobilization program including rehabilitation of the exploration camp with modern communications, initiating construction of the access road to planned drillhole BA-004, prepping and upgrading rotary drill rig equipment on site, initiating seismic re-interpretation studies, and resampling previous drillholes.
The team is out to start drilling as soon as it can, infrastructure (such as a drill rig) remains at the site, with another, more powerful drill, set to arrive later this month allowing for even deeper drilling. The company plans to release a maiden resource by the summer with a preliminary economic assessment to follow.
These are just some of the recent developments behind Millennial Potash that are likely to help advance its leading business in the organic fertilizer market and investors should keep watch of where this company heads next.
Millennial Potash Corp. stock has risen 39.7 per cent since the year began.
Investors face more choices now than ever as it can be daunting for beginners and the experienced alike to make sense of where the true value lies. It is clear that proper stock valuation is a key component to any good investment decision. When assessing any opportunity, evaluating its revenues (past, present, and forecast for the future), earnings, as well as net present value, will help paint a clearer picture of what can be expected, especially when comparing any company to its peers.
To keep up with regular updates, visit millennialpotash.com.
Disclaimer:
The Information contained here is a paid advertisement and is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Prior to making any investment decision, it is recommended that readers consult directly with the public company and seek advice from a qualified investment advisor. The corporate information included in this was provided by Millennial Potash Corp. in order to help investors learn more about their company. The information provided is purely and solely the responsibility of Millennial Potash Corp. who has reviewed and approved all material for accuracy. Stockhouse does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. Investing in securities is speculative and carries risk. Persons who wish to buy or sell securities should only do so at their own risk and in consultation with their registered securities advisers. Stockhouse does not own stock in Millennial Potash Corp.