Millennial Potash Secures 70% Stake in Gabon Project with Strong Economic Potential

Millennial Potash Corp. has announced securing a 70% interest in the Banio Potash Project located in Gabon, marking a significant corporate milestone. The achievement follows the company filing a Preliminary Economic Assessment and making substantial milestone payments totaling $300,000 along with 1 million shares of MLP to project vendors. Company Chairman Farhad Abasov confirmed that Millennial Potash has earned the 70% interest in the shares of Equatorial Potash Pty, which holds full ownership of the Banio Potash Project through its Gabon subsidiary, Mayumba Potasse SARL.

The Preliminary Economic Assessment report highlights the project's potential as a low-cost solution mining operation based on an annual production target of 800,000 tonnes of granular muriate of potash, a key fertilizer component essential for global food security. What distinguishes this project is its remarkably low capital expenditure estimate of US$480 million and operational expenditure of US$61 per tonne of muriate of potash, positioning it among the most cost-effective operations in the industry. These favorable economics are attributed to the project's thick potash horizons and planned use of solution mining techniques.

The financial projections demonstrate 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%. The significance of this development extends beyond corporate success as global demand for fertilizers continues to rise due to population growth and the need for increased agricultural productivity. Projects like Banio could play a crucial role in ensuring stable potash supply to world markets. The low-cost production model could potentially allow for more competitive pricing of potash, benefiting farmers and contributing to global food security efforts.

The project's location in Gabon adds strategic importance, potentially establishing a new hub for potash production in Africa. This could have positive implications for regional economic development and diversification of the global potash supply chain, currently dominated by a handful of major producing countries. Millennial Potash has outlined plans to continue implementing recommendations from the PEA, including preparations for additional drilling at the North Target area to potentially expand the resource base and enhance the project's already robust economics.

As the global agriculture sector faces increasing pressure to boost yields sustainably, projects like the Banio Potash Project could become increasingly important. The combination of low production costs and substantial output potential positions Millennial Potash to potentially become a significant player in the global potash market. The company's progress could serve as a bellwether for the broader potash mining sector, particularly for projects in emerging markets, potentially setting new benchmarks for efficiency and profitability in potash production.