Buffalo Potash (TSX-V:BUFF) has closed the first tranche of its oversubscribed private placement, raising C$14.01 million ($14.26 million) to advance its Disley Project in Saskatchewan.
The company issued 4.74 million hard dollar units (HD units) at C$0.45 each for gross proceeds of C$2.13 million, 6.99 million flow-through shares at C$0.52 each for C$3.64 million, and 14.77 million charity flow-through units at C$0
Company executives likewise participated in the offering, acquiring 60,000 HD units and 96,084 flow-through shares for C$76,964.
Due to investor demand, the total offering size increased to C$14.85 million.
The company says the remaining balance is expected to close in a second tranche by 30 June 2026.
CEO Steve Halabura says the financing represents a clear endorsement of the company’s strategy and the quality of the Disley Project.
“With a strengthened balance sheet, we are well positioned to advance toward first production through our capital-efficient initial production module,” Halabura says.
Each HD unit comprises one common share and half a warrant, while each charity flow-through unit includes one flow-through share and half a warrant.
The warrants are exercisable at C$0.60 for 24 months.
Buffalo Potash can accelerate the expiry of the warrants on 30 days’ notice if shares trade above C$0.90 for 10 consecutive trading days.
The company says proceeds from the flow-through shares and charity flow-through units will advance geological potential and fund downhole infrastructure for the initial production module at Disley, while HD unit proceeds will support general working capital.
All securities are subject to a four-month statutory hold period, and the company has received conditional approval from the TSX Venture Exchange.
Halabura outlines the company’s focus moving forward.
“Our team is focused on disciplined execution and on proving out our modular development strategy, which we see as the next evolution of global potash production,” he says.
The Disley Project sits alongside several prominent producing potash solution mines in Saskatchewan, where Buffalo Potash is pursuing a modular approach to selective solution mining through its patented Horizontal Line-Drive (HLD) technology.
Buffalo Potash is a Canadian explorer focusing on the extraction of potash using its proprietary HLD mining technology.
Write to Paula Fabe at Mining.com.au
Images: Buffalo Potash
