VANCOUVER, BC, June 26,
2023 /CNW/ - SAGE POTASH CORP. (TSXV: SAGE)
(OTC: SGPTF) ("Sage Potash" or the "Company") is pleased to
announce the formation of a U.S. subsidiary, Sage Lithium Corp.
("Sage Lithium"). Due to multi-commodity brines with high Li-K-Br
analyses reported from historic oil and gas wells in the area, the
Company is encouraged to explore additional potential revenue
sources known to occur within the Paradox Basin. The primary
objective of Sage Lithium will be to conduct testing for lithium
and other soluble saline minerals within the existing brine hosting
strata covered by Sage Potash's
private mineral lease portfolio. Sage Lithium will be operating in
conjunction with its parent company, Sage
Potash, which is in the process of applying for Class V
Authorization by rule to drill two exploration wells that are
planned to function as an initial pilot production well and a brine
disposal well. Concurrently, Sage Lithium will sample, test, and
analyse strata that are amenable to brine extraction for lithium,
bromine and other soluble saline minerals.
This strategic decision is grounded in the Company's assessment
of historical records derived from oil, gas and potash wells
drilled in the Paradox Formation. The Company believes these
records indicate a strong possibility of intersecting
super-saturated brines (composed of up to 40% minerals and 60%
water) containing a diverse range of valuable minerals, including
lithium, bromine and potassium, in the Paradox Formation.
Sage Potash holds private mineral
leases located in the Paradox Basin that grant the Company
exclusive rights to extract potash, lithium, and other saline
minerals and resources.
Sage Lithium will operate as a standalone subsidiary exploring
the mineral leases for lithium and other soluble saline minerals on
17,277 acres of private mineral and surface leases owned by its
parent company, Sage Potash.
The Paradox Formation is host to brine-bearing strata that has
been the focus of numerous lithium exploration companies, including
Anson Resources (OTC: ANSNF) which has reported on its plans to
develop its 530 MT indicated resource
grading 123 ppm Li and 3,474 ppm Br, in the northern part of the
Paradox Basin (1).
The Company believes that historic oil and gas wells throughout
the Paradox Basin were seldom analysed for lithium, bromine,
potassium, and boron, though the few that were sampled returned
concentrations ranging from 66ppm to 1,700ppm lithium, 18,800 ppm
to 47,000 ppm potassium, and 1,150 ppm to 6,100 ppm bromine.
The following is a publicly available list of historical wells
analysed for multiple elements(2):
Well
|
Strata
thickness
(ft)
|
Lithium
ppm
|
Potassium
ppm
|
Bromine
ppm
|
Boron
ppm
|
King Oil
No.2
|
16
|
173
|
41,957
|
1,150
|
2,922
|
S. Natural Gas No.
1
|
43
|
98
|
20,000
|
3,000
|
600
|
S. Natural Gas No.
1
LC
|
16
|
500
|
23,400
|
6,100
|
-
|
Pure Oil No. 1
Hobson
|
17
|
134
|
25,500
|
1,612
|
1,260
|
White Cloud No.
2
|
16
|
1,700
|
47,000
|
2,500
|
20,000
|
Delhi-Taylor No.
2
|
-
|
66
|
18,800
|
3,080
|
660
|
Superior Oil
88-21P
|
-
|
339
|
24,250
|
3,200
|
-
|
Pure Oil No. 2 Big
Flat
|
-
|
81
|
21,000
|
2,041
|
780
|
Sage Potash CEO, Peter
Hogendoorn, commented, "When we included 'saline mineral
rights' in our initial private mineral leases, we didn't realize at
the time how much lithium interest would develop in the Paradox
Basin/Lisbon Valley. 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."
Additionally, the Company has entered into advertising and
investor awareness campaigns with Think Ink Marketing Data &
Email Services LLC ("Think Ink"), Blue Summit Ventures Inc.
("Blue Summit"), and Marcus van der Made. The Company has also
engaged Venture Liquidity Partners Inc. ("VLP") for market making
services, and Fairfax Partners Inc. ("Fairfax") to aid in the
management of their corporate development activities.
The Company has entered into an agreement with Think Ink for a
1-month term commencing June
1st, 2023, to provide public relations services
in an effort to increase public awareness of the Company, its
business and securities. Certain services to be provided by Think
Ink are anticipated to include 'investor relations activities'
under the policies of the TSX Venture Exchange ("TSXV") and
applicable securities laws. The Company has budgeted up to
US$25,000 for the marketing services
of Think Ink, which include facilitating the creation and
distribution of marketing materials, on-line banners, and native
ads.
VLP has been engaged to provide market-making services for the
common shares of the Company, ensuring a well-functioning trading
market. VLP will carry out these services through registered broker
W.D. Latimer Co. Ltd., adhering to TSXV policies and relevant laws.
The Company will compensate VLP with a monthly cash fee of
CAD$5,000. The agreement commenced on
May 15th, 2023, and will
continue on a month-to-month basis, subject to termination with a
notice period of five days. VLP and the Company have an arm's
length relationship, with no present interest in each other's
securities. The necessary finances and shares for market-making are
provided by W.D. Latimer Co. Ltd., which is also independent of the
Company. The fee paid to VLP is solely for its market-making
services. VLP is a specialized consulting firm based in
Toronto that offers various
services tailored to TSXV-listed issuers.
Blue Summit has agreed to provide investor relations and
communications services to the Company in exchange for an fee of
CAD$5,000 per month, on a
month-to-month basis effective May
1st. The services will include outbound
communications and investor relations services. As of the date
hereof, to the Company's knowledge, Blue Summit (including its
directors and officers) do not own any securities of the
Company.
Marcus van der Made has agreed to provide investor relations and
communications services to the Company in exchange for a fee of
CAD$4,000 per month. The agreement
commenced on June 12, 2023, for a
12-month term. The services will include outbound communications
and investor relations services. As of the date hereof, to the
Company's knowledge, Marcus van der Made does not own any
securities of the Company.
Sage Potash has enlisted the
expertise of Vancouver-based
consulting firm Fairfax Partners to aid in the management of their
corporate development activities. As part of the arrangement,
Fairfax Partners will be compensated with a monthly fee of
CAD$10,000 for a period of 12 months,
which commenced on March
15th. As of the date hereof, to the Company's
knowledge, Fairfax Partners (including its directors and officers)
do not own any securities of the Company.
This news release contains information about adjacent properties
on which the Company has no right to explore or mine. The Company
advises U.S. investors that the SEC's mining guidelines strictly
prohibit information of this type in documents filed with the SEC.
United States investors are
cautioned that mineral deposits on adjacent properties are not
indicative of mineral deposits on the Company's properties.
Any information concerning mineral reserve or mineral resource
estimates contained in this news release or the documents
available on the Company's website have been prepared in
accordance with the requirements of the securities laws in effect
in Canada, including National
Instrument 43-101 Standards of Disclosure for Mineral Projects
("NI 43-101"). These standards differ significantly from the
requirements of the SEC that are applicable to domestic
United States reporting companies.
Any estimates of Mineral Reserves and Mineral Resources reported
by the Company pursuant to NI 43-101 may not qualify as such under
SEC standards. Accordingly, information provided on the Company's
website may not be comparable with information made public by
United States companies subject
to domestic SEC reporting and disclosure requirements.
References:
(1)
https://www.ansonresources.com/paradox_lithium_project/
(2) Lisbon Valley Lithium Report, By Bradley C. Peek, MSc., CPG – Dec 6th, 2021
Qualified Persons:
Patricio Varas, P.Geo., a
Qualified Person as defined by NI 43-101, has read and approved all
technical and scientific information related to the historical
brine data contained in this news release. Mr. Varas is the Chief
Operating Officer and Vice President Exploration for Sage Potash. Mr. Varas has reviewed the data
disclosed in this press release but has not verified historic assay
information.
About Sage Potash Corp.
Sage Potash is a Canadian company
vested solely in the Sage Plain Property and intends through
sustainable solution mining techniques to become a prominent
domestic potash producer within the Paradox Basin situated in
Utah. For further information,
please refer to the Company's disclosure record on SEDAR
(www.sedar.com) or contact the Company by email at
info@sagepotash.com.
On Behalf of the Board of Directors,
Peter Hogendoorn
CEO & Executive Chairman
Website: www.sagepotash.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities legislation. The forward-looking statements herein are
made as of the date of this news release only, and the Company does
not assume any obligation to update or revise them to reflect new
information, estimates or opinions, future events or results or
otherwise, except as required by applicable law. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budgets",
"scheduled", "estimates", "forecasts", "predicts", "projects",
"intends", "targets", "aims", "anticipates" or "believes" or
variations (including negative variations) of such words and
phrases or may be identified by statements to the effect that
certain actions "may", "could", "should", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
in this news release includes, but is not limited to, statements
with respect to future events or future performance of Sage Potash or Sage Lithium, including the
Company's plan to conduct exploratory drilling, the ability of the
Company to obtain all necessary regulatory approvals for its
proposed drilling program, management's expectations regarding the
presence of lithium, bromine, and other soluble saline minerals on
the properties controlled by the Company, and the Company's
expectations regarding its ability to develop any such minerals
that may be present on the Company's properties. Forward-looking
statements and information are subject to various known and unknown
risks and uncertainties, many of which are beyond the ability of
the Company to control or predict, that may cause the Company's
actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are
developed based on assumptions about such risks, uncertainties and
other factors set out herein, including, but not limited to, the
risk factors set out under the heading "Risk Factors" in the
Company's final non-offering long form prospectus dated
March 2, 2023 available for review on
the Company's profile at www.sedar.com. Such forward-looking
information represents management's best judgement based on
information currently available. No forward-looking statement can
be guaranteed and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
SOURCE Sage Potash Corp.