April 7, 2023
Peak Minerals Inc. has entered into a convertible loan agreement with a global strategic investor to invest $30 million to continue development of the Company’s Sevier Playa Sulfate of Potash (SOP) Project in west-central Utah.
The proceeds of the financing will be used to fund front-end engineering and design (FEED) for the Sevier Playa Project (the final technical work ahead of construction), complete final permitting activities, prepare the site in advance of construction, refinance the Company’s existing senior debt obligations, and for general corporate purposes.
As part of the Loan agreement, Peak Minerals and its investor have also entered into a binding term sheet for the long-term supply of 65,000 tons per year of SOP from Phase 1 of the Project, which is targeting total SOP production of 215,000 tons annually.
"We are pleased to announce the completion of this financing, and to have attracted a high caliber investor to the Company. As we move the Sevier Playa Project towards construction and operation, this investment marks an important milestone for the company," said Dean Pekeski, CEO of Peak Minerals. "These funds will provide us with the necessary capital and financial flexibility to grow our internal technical team, complete FEED, initial site works and contract negotiation and arrangement of project finance as we advance towards a construction decision."
The comany is developing the Sevier Playa Project in Millard County, UT, the most significant SOP development effort on the continent. Peak Minerals' mission is to become the highest quality and lowest cost SOP producer in North America. This will enable the region to become self sufficient in chloride-free fertilizers that will help farmers increase high-value food production to feed North America’s growing population.
Peak Minerals is focused on delivering plant nutrition in a safe, responsible, and environmentally conscious way.
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