Millennial Potash Completes Milestones and Earns 70% of Banio Potash Project

Rhea-AI Summary

Millennial Potash Corp. (MLPNF) has secured a 70% interest in Equatorial Potash Pty. , which holds the Banio Potash Project in Gabon. This marks a 19% increase from their previous 51% stake. The company achieved this by submitting a Preliminary Economic Assessment (PEA) and making milestone payments of $300,000 and 1,000,000 shares. Key developments include a maiden Mineral Resource Estimate of 657 million tonnes of Indicated resources and 1.16 billion tonnes of Inferred resources. The PEA outlines a low-cost solution mining operation with an estimated CAPEX of $480M and OPEX of $61/tonne MOP, projecting a post-tax NPV(10) of $1.07 billion and IRR of 32.6%. Future plans involve additional drilling to expand resources.

Positive

• Secured a 70% interest in Equatorial Potash, increasing from 51%.
• Maiden Mineral Resource Estimate: 657 million tonnes of Indicated resources and 1.16 billion tonnes of Inferred resources.
• Low-cost solution mining operation outlined in PEA.
• Estimated CAPEX of $480M and OPEX of $61/tonne MOP.
• Projected post-tax NPV(10) of $1.07 billion and IRR of 32.6%.

Negative

• Milestone payments of $300,000 and 1,000,000 shares might dilute current shareholders.

West Vancouver, British Columbia--(Newsfile Corp. - July 9, 2024) - Millennial Potash Corp. (TSXV: MLP) (OTCQB: MLPNF) (FSE: X0D) ("MLP", "Millennial" or the "Company") is pleased to announce that it has earned a total 70% interest in the shares of Equatorial Potash Pty. Ltd. ("Equatorial") which, through its Gabon subsidiary Mayumba Potasse SARL, holds 100% of the Banio Potash Project. To earn 70% (which represented an increase of 19% from the previously held 51% of the shares of Equatorial), MLP has filed a Preliminary Economic Assessment (PEA) and made milestone payments of US$300,000 and 1,000,000 shares of MLP to the vendors of the Banio Potash Project.

Farhad Abasov, the chairman of Millennial, commented: "We are excited to have made such fast progress in the development of the Banio Potash Project since we first announced the earn-in agreement in March 2023. In less than a year, the Company built an exploration camp, drilled exploration holes extending the potash deposit thickness to 70 meters, and issuing a maiden Mineral Resource Estimate of 657 million tonnes of Indicated resources grading 15.9% KCl and 1.16 billion tonnes of Inferred resources grading 16% KCl in January 2024 (see press Release dated Jan. 16, 2024). In April 2024, the Company released the results of a very robust PEA."

The PEA report outlines the details of a potentially low-cost solution mining operation at the Banio Potash Project. The PEA was based on production of 800,000 Tonnes Per Year of granular Muriate of Potash (MOP). Thick potash horizons along with a solution mining approach produced one of the lowest CAPEX (US$480M) and OPEX (US$61/tonne MOP) estimates in the industry. The solid economics of the Banio Potash Project were further demonstrated through a strong post-tax NPV(10) of US$1.07 Billion and IRR of 32.6% (see Press Release dated Apr. 23, 2024). MLP will continue implementing recommendations from the PEA including preparation for additional drilling at the North Target in order to expand the resources further.

The information in this news release has been reviewed and approved by Peter J. MacLean, Ph.D., P. Geo and Director of the Company who is a Qualified Person as that term is defined in National Instrument 43-101.

To find out more about Millennial Potash Corp. please contact Investor Relations at (604) 662-8184 or email at info@millennialpotashcorp.com.

MILLENNIAL POTASH CORP.

"Farhad Abasov"
Chair of the Board of Directors

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.

This document may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan" or "planned", "forecast", "intend", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals including approvals of title and mining rights or licenses and environmental (including land or water use), local community or indigenous community approvals, the reliability of third party information, continued access to mineral properties or infrastructure, changes in laws, rules and regulations in Gabon or any other jurisdiction which may impact upon the Company or its properties or the commercial exploitation of those properties, currency risks including the exchange rate of USD$ for Cdn$ or CFA or other currencies, fluctuations in the market for potash or potash related products, changes in exploration costs and government royalties, export policies or taxes in Gabon or any other jurisdiction and other factors or information. The Company's current plans, expectations and intentions with respect to development of its business and of the Banio Potash Project may be impacted by economic uncertainties arising out of any pandemic or by the impact of current financial and other market conditions on its ability to secure further financing or funding of the Banio Potash Project. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, environmental and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215775

FAQ

What milestone did Millennial Potash achieve for the Banio Potash Project?

Millennial Potash achieved a 70% interest in Equatorial Potash by submitting a PEA and making milestone payments.

How much interest does Millennial Potash now hold in the Banio Potash Project?

Millennial Potash now holds a 70% interest in the Banio Potash Project.

What was the cost of Millennial Potash's milestone payments?

The cost included $300,000 and 1,000,000 shares of Millennial Potash.

What are the estimated CAPEX and OPEX for the Banio Potash Project?

The estimated CAPEX is $480M and OPEX is $61/tonne MOP.

What is the projected post-tax NPV(10) and IRR for the Banio Potash Project?

Projected post-tax NPV(10) is $1.07 billion and IRR is 32.6%.

What are the Mineral Resource Estimates for the Banio Potash Project?

The Mineral Resource Estimates include 657 million tonnes of Indicated resources and 1.16 billion tonnes of Inferred resources.

What is the production capacity outlined in the PEA for Banio Potash Project?

The production capacity outlined is 800,000 tonnes per year of granular Muriate of Potash (MOP).