Sage Potash Provides Updates to Equipment Purchase and Financing
Sage Potash Provides Updates to
Equipment Purchase and Financing
VANCOUVER, BC, Jan. 10, 2025 /CNW/ - Sage Potash Corp.,
(TSXV: SAGE) (OTC: SGPTF) ("Sage" or the "Company") is pleased
to announce that the equipment purchase transaction contemplated in
its September 9, 2024 news release (the "Prior News Release") will
now be carried out through an alternative equipment leaseback
arrangement, which, in management's view, is more financially
beneficial to the Company than the direct purchase transaction.
Consequently, the purchase agreement (the "Purchase Agreement")
previously entered into with a subsidiary of International Process
Plants ("IPP"), as well as the associated concurrent financing on the
terms described in the Prior News Release, have been terminated in
favour of such leaseback arrangement.
On execution of the Purchase Agreement, the Company paid a cash
deposit of $500,000 to IPP, which will be refunded to the Company
and offset against the future equipment leaseback arrangement
described above. Such arrangement has not yet been executed and is
under negotiation between the Company, IPP and other applicable
parties, and may be subject to TSX Venture Exchange acceptance, if
required. There are no security arrangements in place with respect to
the deposit.
Other than the deposit, no funds have been advanced, and no
securities of the Company have been issued, to IPP, and there are no
residual liabilities or guarantees of the Company in connection with
termination of the Purchase Agreement.
The Company further announces that it still intends to carry out a non-
brokered private placement of up to 12,500,000 common shares at
$0.20 each, for gross proceeds to Sage of up to $2.5 million (the
"Offering").
The proceeds of the Offering will be used for general working capital
purposes. All securities issued under the Offering will be subject to a
hold period of four months and one day from the date of issuance
under applicable securities laws. The Company may pay finders' fees
in cash and/or securities of the Company in connection with the
Offering.
Certain directors and officers of the Company may acquire securities
under the Offering. Any such participation will be considered to be a
"related party transaction" as defined under Multilateral Instrument 61-
101 ("MI 61-101"). The Company expects that the Offering will be
exempt from the formal valuation and minority shareholder approval
requirements of MI 61-101 as the Company is listed on the TSX
Venture Exchange and neither the expected fair market value of
securities being issued to related parties nor the consideration being
paid by related parties would exceed 25% of the Company's market
capitalization.
Closing of the Offering is subject to TSX Venture Exchange
acceptance.
About Sage Potash Corp.
Sage 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.sedarplus.ca) or
contact the Company by email at [email protected].
On Behalf of the Board of Directors,
Peter Hogendoorn
CEO & Executive Chairman
(604) 764-2158
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 certain statements that may be deemed
"forward-looking statements". Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may", "could"
or "should" occur. Forward-looking statements include, without
limitation, statements relating to the potential future equipment
leaseback arrangement and the intended Offering. Although the
Company believes the expectations expressed in such forward-
looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance, are subject to
risks and uncertainties, and actual results or realities may differ
materially from those in the forward-looking statements. Such material
risks and uncertainties include, but are not limited to: the equipment
leaseback arrangement or the Offering not proceeding as planned; the
proceeds of the Offering being used other than as described herein;
competition within the industry; actual results of current exploration
activities; environmental risks; changes in project parameters as plans
continue to be refined; future price of commodities; failure of
equipment or processes to operate as anticipated; accidents, and
other risks of the mining industry; delays in obtaining approvals or
financing; risks related to indebtedness and the service of such
indebtedness; as well as those factors, risks and uncertainties
identified and reported in the Company's public filings under its
SEDAR+ profile at www.sedarplus.ca. Although the Company has
attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward-
looking information, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on forward-
looking statements. There can be no assurance that such information
will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements. Forward-
looking statements are made as of the date hereof and, accordingly,
are subject to change after such date. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or
otherwise unless required by law.
SOURCE Sage Potash Corp.
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%SEDAR: 00054782E
CO: Sage Potash Corp.
CNW 15:56e 10-JAN-25