Peyto Exploration & Development Corp. (“Peyto”) has initiated a process to divest all Saskatchewan non-core assets.
Confidential information will be made available to parties who execute a confidentiality agreement. Confidential information will consist of: Mineral Property Report, Royalty Statement, and Property Tax Assessment.
Highlights
Material Asset Base with Future Upside
– The asset consists of a land base of 142 Gross / ~16.8 net sections with a favourable tenure profile (predominantly Fee Title)
– Limited annual expenses fully offset by current royalty income
– Land base well positioned for current and future Potash exploitation
Limited ARO
– Limited ARO ($13,600.00) associated with existing wells and surface facilities
Future Development from Various Assets – Diverse Resource Potential
– Area is in heart of existing Potash development focused around Saskatoon, Regina and Yorkton
– Potential for upside in other emerging resource development including Helium/Lithium
Potash Resources
Allan Mine (Nutrien / Potash Corp.) T34 R1 W3M
– Production of potash began in 1968
– Conventional underground mining operation
– Annual production capacity of 4 million tonnes of finished potash (KCI)
– Mine elevations range from ~980 m to 1120 m (Avg. 1010 m)
– Estimated remaining mine life ~50 years
– 319 net acres within Allan #3 unitized area
– Peyto receives rental income and royalty payments for potash production
Jansen Project (BHP)
– ~480 net acres within BHP Jansen mine project core/expansion areas
– As per BHP corporate news releases (www.bhp.com):
- Production capability of ~4.35 Mtpa expected to be delivered with Stage 1 in late 2026 (26% complete as at June 2023) followed by Stage 2 production in 2029
- Once ramped up, Jansen will become one of the world’s largest potash mines at ~8.5 Mtpa
- Longer term, Jansen has potential to reach 16-17 Mtpa (subject to studies and approvals)
– Potential future income from unitization and mine expansions
Further Potash Resource Upside
– Mineral rights held in areas with proven production West of Regina and Southeast of Yorkton
Potash and Salt Resource Boundary and Projects – Saskatchewan Geological Survey (2023): Resource Map of Saskatchewan, 2023 Edition; Saskatchewan Ministry of Energy and Resources, Saskatchewan Geological Survey, Miscellaneous Report 2023-1.
Recent Crown Landsale Activity
– Abundance of Crown Landsale activity since January 2021
– Average ~$142/ha
Recent Well Activity
– Abundance of wells spud since January 2021
– Wells targeting oil & gas, lithium and potash
Peyto has a strong preference to white map out of the area, however, will evaluate all offers received.
Peyto makes no representations or warranty as to the accuracy or completeness of the information provided. Each party should rely on its own investigation and due diligence to satisfy itself as to all matters relating to the assets. Peyto reserves the right to accept or reject any or all offers at its sole discretion for any reason whatsoever.
All inquiries relating to the process, and requests for additional information, should be directed to Derick Czember at 587-390-6119 (dczember@peyto.com).