SALT LAKE CITY: Canadian Phosphate Limited said Sunday it has signed a binding agreement to acquire the Diamond Mountain Phosphate Project in northeastern Utah, an advanced asset adjacent to one of the largest phosphate mines in the United States.
The deal with Revival Gold Inc. and Utah Minerals Resources LLC gives Canadian Phosphate 100% ownership of the project, which holds a foreign resource estimate of 26.8 million metric tons of measured and indicated resources and 23.1 million metric tons of inferred resources averaging 19.67% P₂O₅, according to a company announcement.
The project is located 35 kilometers northeast of Vernal, Utah, next to Simplot’s 4 million metric tons-per-year Vernal Phosphate Mine. Company officials said the location provides access to existing infrastructure and a supportive regulatory framework in a tier-one mining jurisdiction on state-owned land.
Phosphate is a key fertilizer ingredient and is classified as a critical mineral in the U.S., Canada, Australia and the European Union due to its role in food supply chains and emerging use in lithium-iron-phosphate batteries.
“Our acquisition of this large, advanced, high-quality sedimentary phosphate project in the United States represents a material step in accelerating our strategy to become a major North American phosphate supplier,” said Daniel Gleeson, managing director and CEO of Canadian Phosphate.
The total consideration is up to US$3 million, including US$1.5 million in upfront cash and share payments and up to US$1.5 million in deferred consideration payable after the first anniversary of commercial production.
The foreign resource estimate is based on a 2014 technical report prepared under Canadian National Instrument 43-101 standards. The company noted the estimate is not reported in accordance with the JORC Code, an Australasian reporting standard, and said a competent person has not yet done sufficient work to classify the estimate under that code.
Canadian Phosphate said it plans to conduct a data validation and verification drilling program, including twinning of existing drill holes, with the goal of reclassifying the resource under JORC standards as permitting allows.
The transaction remains subject to regulatory approvals, including clearance from the Australian Securities Exchange and assignment of the state lease from the Utah School and Institutional Trust Lands Administration.
