FULL DISCLOSURE: Sage Potash is a sponsor of theDeepDive.ca.
Sage Potash (TSXV: SAGE) has achieved a major milestone, with the company announcing this morning that they have been approved for a US$14 million grant from the United States Department of Agriculture.
The grant is expected to support the development of Sage’s flagship Sage Plain Potash Project, located in the Paradox Basin of Utah. Funding is to be used to support a financing strategy for the construction of a 300,000 tonne per year potash operation. The funds are said to represent a “significant portion” of expected project costs to get the proposed solution mine operational.
Permitting for the Sage Plain Potash Project is currently being advanced, with a preliminary economic assessment expected to be released sometime in the third quarter of 2025.
“The USDA grant underscores the importance of increasing domestic potash capacity to serve U.S. farmers and Sage is uniquely positioned to build incremental capacity in-market that is derisked in terms of capital, time to production and execution. This grant brings Sage Potash one step closer to planned production and accelerates partnering and financing efforts,” commented Tim Mizuno, President and COO of Sage Potash.
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Funding from the USDA grant was approved under the Fertilizer Product Expansion Program, which is intended to support the manufacturing and processing of fertilizer and nutrients within the US. The United States currently imports more than 90% of potash consumed, while the mineral was added to a draft list of critical minerals for the Department of the Interior and US Geological Survey in August.
“Sage applauds the U.S. Federal administration’s decision to add potash to the critical mineral list and is grateful for the USDA grant. With this support, we are well positioned to help grow domestic potash production, derisk the foreign supply chain for American Farmers and create long-term value for our shareholders,” commented Peter Hogendoorn, CEO of Sage.
Sage Potash last traded at $0.38 on the TSX Venture.
FULL DISCLOSURE: Sage Potash is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Sage Potash. The author has been compensated to cover Sage Potash on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
