Buffalo Potash signs C$8.5M royalty deal with Altius Minerals

Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) has entered into a binding letter of intent for a royalty agreement with Altius Royalty Corporation, a wholly owned subsidiary of Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF), according to a company statement.

Under the agreement, Altius will acquire a 1.0% gross overriding royalty on Buffalo's Disley West property in Saskatchewan for aggregate cash consideration of C$8.5 million. The royalty will be granted in two tranches of 0.5% each. An initial payment of C$3.4 million is due at closing, with the remaining C$5.1 million contingent on the satisfaction of certain technical conditions related to brine circulation.

Altius will also receive a right of first offer on any royalty or similar financing Buffalo proposes to grant on its Disley East property. The agreement does not extend to Buffalo's Edenwold or Odessa properties.

The transaction represents Altius's first royalty on a development-stage potash project. Altius currently holds royalty interests across six producing potash mines in Saskatchewan operated by Nutrien Ltd. and The Mosaic Company.

The proceeds are intended to fund Buffalo's Initial Production Module, which the company is targeting for first production in Q1 2027, with a designed annual production capacity of 125,000 tonnes of soluble-grade potash. Buffalo's production decision is not based on a feasibility study of mineral reserves, which the company acknowledges carries a higher risk of economic and technical failure.

The transaction builds on Altius's prior C$3 million participation in Buffalo's June 2026 private placement. Upon closing of both payment tranches, Altius's total investment in Buffalo will reach C$11.5 million, excluding its separately acquired royalty on Buffalo's Odessa Project.

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