What We Do

The solution to foreign dependency

In today’s post-Covid world of strained supply chains, food security is further threatened by a 25% world supply shortage caused by sanctions against Russia and Belarus. The US imports 95% of its Potash requirements from Canada and it is critical that American potash production be brought on-line to ensure long-term National Food Security. The Sage Plains Project could be the largest potash deposit closest to production within the continental US to improve regional and national supply chain resilience and reduce delivered cost to market. Pricing from Canada to various US market regions include high freight and storage costs between $150-225/ton.

There are potash deposits in the US that have historically provided some domestic supply, mostly located in New Mexico, Michigan and Utah. According to the most recent figures available from the USGS⁵, for 2020, domestic production has remained stable over the past several years even as price (and profitability) has risen. Existing producers are limited by complex geology, and production constraints and new sources must be developed.

Establishing new mines in known potash-rich areas is a good place to start. The USGS estimates there are about 7 billion tons of potash that is potentially accessible in the US, with about 2 billion tons located in the Paradox Basin that covers portions of southeastern Utah and southwestern Colorado.

PARADOX BASIN CONTAINS MORE THAN 25% OF US POTASH, YET ONLY PRODUCES 3.5% OF US POTASH DEMAND

Potash prices have risen dramatically due to the sanctions against Russia/Belarus, but have adjusted lower due to increased inventories. The Potash market is expected to register fluctuating growth trends in the long term, while inflation and supply chain concerns are expected to continue in 2023.* One area that needs to be watched closely in the U.S. in the early part of 2023 is fertilizer logistics. The all-important Mississippi River continues to operate at extremely low levels because of drought lowering river levels. Reports from the river say barges are operating somewhat lighter to negotiate the shallower river. This could affect both nutrient supply and price.**

*2023 Potash Market Outlook Report
**2023 Potash Outlook Sees More Supply, Lower Prices

Planting economics for growers must consider many factors: previous and future commodity prices, fertilizer costs, soil analysis etc. Depending on these inputs the decision to skip fertilizer for a season could be a reality. The major foreign producers only supply a “one size fits all” product, a standard potassium content blend. Having a regional US based producer with the flexibility to supply varying blends of potassium could be an important factor in managing seasonal planting unit costs when potash prices are up. Similarly, varying climate zones and soil conditions may benefit from lower potassium content thereby reducing unnecessary fertilizer run-off.

Importance of POTash

Maintaining crop production and boosting yields requires 3 essential nutrients: NPK (Nitrogen, Phosphate, Potassium). Potassium(K) is key in plant nutritional composition. Both humans and animals require high levels of K in their diet to function properly. Humans get their K requirements by consuming fruits, vegetables, grains and animal protein. The animals that we rely on for food also get their K requirements from feed crops (alfalfa hay, corn stover, and small grain cereals). Most of the potassium found in soils, is tied up (and insoluble) as feldspar and mica and unavailable to the plant, the minimal available fraction is found in soil solution.

Key roles of potassium in plants:

Facilitates the translocation of water, carbohydrate and other nutrients within the plant
Activates functional enzymes and is important for photosynthesis
Stimulates early root and shoot growth, enhances maturity, and promotes yield
Promotes good water use efficiency in the crop, reducing drought stress and wilting
For winter crops, K is very important in vigor, good stand resistance, and reduced lodging
Inhibits plant disease

Management Team & Directors

Peter Hogendoorn

CEO

30 years of financing junior mining and tech companies, both public and private.
Owner of Wrenswood Capital Corp for 20 years investing in and consulting for numerous start-ups and turn-arounds.
2012 brokered original JV, which financed original Sage Plains project of 100,000 plus acres of state, and private Mineral Leases, acquiring seismic data and successfully drilled Johnson 1 well. Entire project cost $16M.

Pat Avery

President, Sage Potash (USA)

Current Director of Fertoz, an Australian phosphate company.
Owner of LDR Solution LLC, a consulting firm for major mining, chemical, fertilizer, project management, and private equity companies.
15 years with ARCO and Santa Fe Pacific Pipelines in refining and transportation.
11 years in Senior Positions, managing over 1,500 employees at ten facilities with JR Simplot.
Former President of Intrepid Potash.
30 years experience in the industries of petroleum, chemicals, mining, fertilizer, and construction/project management.

J. Patricio Varas,
P. Geo. (B.C.).

COO/VP Exploration

Over 36 years of experience in mineral exploration, project management and corporate leadership.
Part of the discovery team of the Diavik Diamond mine in Canada with Rio Tinto, and the Santo Domingo Sur Copper-Iron deposit in Chile.
Founder in the Western Potash Corp and its President and CEO. He raised over $240 Million carrying out resource and reserve definition drilling, environmental studies, permitting, feasibility and engineering studies.

Matthew Lechtzier

Director

Senior VP of Ivanhoe Mines and Ivanhoe Capital for over 25 years
Substantial background in organizing complex transactions in both public and private markets and handling detailed negotiations at a senior level.
Director of Equity Capital Markets at Jardine Fleming in Hong Kong (later J.P. Morgan).

Gordon Ellis

Director, P. Eng (retired)

Over 50 years of involvement in the mining industry and resource development.
Multiple senior management and director roles in public mining companies and a multi-billion-dollar ETF fund.
MBA in International Finance as well as a Chartered Directors designation.

David Reid

LL.B., Director

Senior partner and Global Co-Chair of Mining with DLA Piper (Canada) LLP.
Over 40 years of experience in mining and securities law, including over $3.5 billion in corporate finance and merger and acquisition transactions since 2011.
Recognized by Lexpert as a Leading Canadian Lawyer in Global Mining, The Legal 500 Canada (Energy-Mining-Corporate-M&A), and Best Lawyers in Canada in the areas of mining, natural resources law and securities law.
Has served on the board of several TSX, NYSE and TSX Venture Exchange resource companies.

Selma Sierra

Director, Sage Potash (USA)

Recently appointed to Division of Oil, Gas and Mining Agency of Utah.
Held numerous senior management positions with BLM,
State Director (Utah) totaling 23 Million acres and staff of 700-900 Full and P/T employees
Chief of Staff to BLM Director in Washington, DC.
Assistant Director of Operations, U.S. Department of Commerce – MBDA, Washington, DC.
Formerly Communications Director for US House Representative where she focused on public lands, energy and environmental legislation.

PROJECT PARTNERS

RESPEC

Engineering & Geoscience Partner

RESPEC has over 50 years of working on potash and salt deposits globally.
Planning and execution for the K+S Potash solution mine, the BHP Jansen project, as well as many of the advanced projects globally.
Original team that planned and executed the original Johnson 1 well and has a local team located in Grand Junction, Colorado, that is well-versed in the local geology, permitting, and local suppliers.