Junior miner Sage Potash, Vancouver, B.C., reported that its common shares would resume trading on the TSX Venture Exchange on Sept. 11 after being halted from trading on Sept. 9 following TSXV’s request to review a transaction between Sage and a subsidiary of International Process Plants (IPP).
Sage, which is developing two Class V exploration wells at its Sage Plain Potash Project in Utah’s Paradox Basin (GM Jan. 12, p. 27), announced on Sept. 9 that it had purchased equipment from IPP for $12.6 million that would be used to process up to 300,000 mt/y year of potash.
Sage said it would satisfy the purchase price by paying $6.3 million in cash, issuing 12.6 million common shares to IPP at a deemed price of $0.20 per share, and issuing IPP a secured convertible debenture with a principal amount of $3.78 million.
Sage said the gross proceeds of the private placement of $11.3 million will be used to satisfy the obligations under the purchase agreement with IPP and for equipment-related purposes such as packing, logistics, modifications, interest, and general working capital.
Sage noted that the private placement and transactions contemplated under the purchase agreement are subject to acceptance by the TSXV, and all securities issued under the private placement and purchase agreement will be subject to a hold period of four months.
“By buying this existing equipment now, Sage is mitigating project risk and cost, as well as providing added clarity to the project’s timeline, which is what project funders require,” said Sage CEO Peter Hogendoorn. “We believe this ultimately enhances shareholder value as we seek to reduce the United States’ nearly 100% reliance on imports for potash supply.”