Sage Potash Announces Formation of U.S. Subsidiary, Sage Lithium Corp.
Sage Potash Announces Formation of U.S.
Subsidiary, Sage Lithium Corp.
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
1
st
, 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 15
th
,
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 1
st
. 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 15
th
. 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
.
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.
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http://www.newswire.ca/en/releases/archive/June2023/26/c4513.html
%SEDAR: 00054782E
For further information:
Peter Hogendoorn, CEO & Executive Chairman, +1(236) 836-4182,
CO: Sage Potash Corp.
CNW 08:00e 26-JUN-23