Buffalo Potash Signs Royalty Agreement with Altius Minerals

Buffalo Potash Corporation has entered a binding letter of intent to grant Altius Royalty Corporation a 1.0% gross overriding royalty on its Disley West property. The transaction provides C$8.5 million in non-dilutive funding, split into a C$3.4 million closing payment and a C$5.1 million milestone payment tied to brine circulation technical conditions. Altius receives a right of first offer on any future royalty or stream financing for the adjacent Disley East property.

This marks Altius's first royalty investment in a development-stage potash project, building on a prior C$3 million participation in Buffalo's June 2026 private placement and a 0.16% royalty on the Odessa Project. The capital is earmarked to advance the Initial Production Module, targeting first production in Q1 2027 with a designed capacity of 125,000 tonnes per annum of soluble-grade potash.

Buffalo Potash Corporation (BUFF) has secured an agreement that provides immediate, non-dilutive capital to fund downhole infrastructure and site development for the IPM, thereby reducing near-term equity financing risk. The deal includes a royalty from Altius Minerals, a firm that holds royalties on six flagship producing potash mines in Saskatchewan. Altius’s entry into a development-stage potash royalty signals confidence in Buffalo's Horizontal Line-Drive (HLD) methodology and the quality of the Disley West asset.

The milestone payment structure ties the remaining C$5.1 million to brine circulation success, aligning capital deployment with technical execution and mitigating upfront risk for Buffalo. While the C$8.5 million raise is positive, it is incremental relative to the project's total capital requirements and does not alter the fundamental development timeline or economic model outlined in the April 2026 PEA.

Buffalo Potash Corporation (BUFF) is a pre-revenue potash exploration and development company focused on its flagship Disley Project in Saskatchewan, Canada. The project utilizes a patented Horizontal Line-Drive (HLD) selective solution mining method, which applies mature oil and gas drilling technology to reduce freshwater use and well counts compared to conventional vertical cavern development. The Disley Project is located approximately 50 km northwest of Regina, adjacent to major producing solution mines operated by K+S (Bethune) and Mosaic (Belle Plaine).

The development strategy is modular, starting with an Initial Production Module (IPM) targeting 125,000 tonnes per annum of soluble-grade potash, with a full build-out of three facilities (IPM, Disley East, Disley West) targeting up to 1,125,000 tonnes per annum. A Preliminary Economic Assessment (PEA) dated April 2026 estimates an after-tax NPV of US$1.1 billion and an IRR of 30% for the full build-out, with a standalone IPM payback period of approximately 12 months from start of production. No mineral reserves have been established; the project relies on inferred and indicated mineral resources, carrying higher technical and economic risks.