Buffalo Potash announces C$5 million private placement for Saskatchewan project

Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) announced a non-brokered private placement offering to raise a minimum of C$5 million in gross proceeds. The company will offer three types of securities with pricing and allocation to be determined based on investor preferences at closing.

The offering consists of hard dollar units priced at C$0.45 per unit, flow-through shares at C$0.52 per share, and charity flow-through units at C$0.558 per unit. Hard dollar units include one common share and half a warrant, while charity flow-through units contain one flow-through share and half a warrant. Each full warrant allows the holder to purchase one common share at C$0.60 for 24 months from issuance.

The company plans to use proceeds from flow-through shares and charity flow-through units to fund downhole infrastructure development for the Initial Production Module at its Disley Project in Saskatchewan. Net proceeds from hard dollar units will support general working capital and corporate purposes.

Buffalo Potash expects the initial closing to occur around June 30, 2026, subject to TSX Venture Exchange approval. The offering may close in multiple tranches, with all securities subject to a four-month-plus-one-day statutory hold period.

Flow-through share proceeds must be spent on eligible Canadian exploration expenses by December 31, 2027, while charity flow-through unit proceeds must be used for Canadian development expenses by December 31, 2026. Both types of expenses will be renounced to subscribers on a pro rata basis.

Company insiders may participate in the offering, which could constitute a related party transaction under regulatory requirements. The company expects such participation would be exempt from formal valuation and minority shareholder approval requirements.

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