Millennial Potash Secures 70% Interest in Gabon's Banio Potash Project Following PEA Submission

Millennial Potash Corp. has secured a 70% interest in the Banio Potash Project located in Gabon, marking a significant corporate milestone achieved through the submission of a Preliminary Economic Assessment and completion of required milestone payments. The company earned this substantial stake in the shares of Equatorial Potash Pty, which maintains full ownership of the Banio Potash Project through its Gabon subsidiary, Mayumba Potasse SARL. This transaction involved payments totaling $300,000 along with 1 million shares of MLP to the project vendors, representing a critical advancement in the project's development timeline.

The Preliminary Economic Assessment reveals the Banio Potash Project's potential as a low-cost solution mining operation targeting annual production of 800,000 tonnes of granular muriate of potash, a crucial fertilizer component essential for global agricultural productivity. The project's economic profile stands out with remarkably low capital expenditure estimates of US$480 million and operational expenditure projected at US$61 per tonne of muriate of potash, positioning it among the most cost-effective operations in the potash industry. These favorable economics stem from the project's thick potash horizons and the planned implementation of solution mining techniques, which typically offer lower development costs compared to conventional mining methods.

Financial projections from the assessment indicate strong potential for profitability, with a post-tax Net Present Value of US$1.07 billion and an Internal Rate of Return of 32.6%, metrics that suggest robust return on investment potential for stakeholders. The significance of this development extends beyond corporate success, as global demand for fertilizers continues to escalate due to population growth and the imperative for increased agricultural productivity. Projects like Banio could play a vital role in ensuring stable potash supply to world markets, with the low-cost production model potentially enabling more competitive pricing that benefits farmers and contributes to global food security initiatives.

The project's location in Gabon adds strategic importance, potentially establishing a new production hub in Africa that could diversify the global potash supply chain currently dominated by a limited number of major producing nations. This development could have positive implications for regional economic development while creating alternative sources for this essential agricultural input. Millennial Potash has outlined plans to continue implementing recommendations from the PEA, including preparations for additional drilling at the North Target area aimed at expanding the resource base and potentially enhancing the project's already strong economics.

As the global agriculture sector faces mounting pressure to boost yields sustainably, projects like the Banio Potash Project become increasingly important for maintaining adequate fertilizer supplies. The combination of low production costs and substantial output potential positions Millennial Potash to potentially emerge as a significant participant in the global potash market. The company's progress with the Banio project could serve as an indicator for the broader potash mining sector, particularly for developments in emerging markets, potentially setting new benchmarks for efficiency and profitability in potash production that might influence future industry developments.