Altius Royalty Financing Advances the Disley Initial Production Module Toward First Production
Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) (FRA: VU5) (the “Company” or “Buffalo“) is pleased to announce that it has entered into a binding letter of intent regarding a royalty agreement (the “Royalty Agreement”) with Altius Royalty Corporation, a wholly owned subsidiary of Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF) (“Altius”), on October 21, 2026, pursuant to which Altius will acquire a 1.0% gross overriding royalty (the “Royalty”) on the Company’s Disley West property consisting of Subsurface Mineral Permit SMP 199 and certain freehold mineral lands held by Buffalo (“Disley West”), together with a right of first offer on SMP 222 (“Disley East”) (the “ROFO”), for aggregate cash consideration of C$8.5 million (the “Transaction”).
The Transaction brings increased alignment with one of the most established names in Saskatchewan potash and provides funding to advance Buffalo’s Initial Production Module (“IPM”), which is targeting first production in Q1 2027, with a designed annual production capacity of 125,000 tonnes of soluble-grade potash.(1)
Transaction Highlights
- Strategic validation from Saskatchewan’s leading potash royalty holder: Altius holds royalty interests across six of the province’s flagship producing potash mines, operated by Nutrien Ltd. and The Mosaic Company.(2) The Royalty marks Altius’s first royalty on a development-stage potash project.
- Non-dilutive funding for the IPM: Aggregate cash consideration of C$8.5 million, comprising C$3.4 million payable on closing and C$5.1 million payable upon the satisfaction of certain conditions precedent, provides capital to advance the IPM.
- Deepening partnership: The Transaction builds on Altius’s C$3 million participation in Buffalo’s June 2026 private placement and its acquisition of a 0.16% gross overriding royalty on Buffalo’s greenfields stage Odessa Project from a private arm’s-length seller. Upon closing of both tranches of the Transaction, Altius’s investment into Buffalo will total C$11.5 million, excluding its acquisition of the royalty on Odessa.
- Royalty limited to Disley West: The Royalty applies only to Disley West. Disley East is subject only to the ROFO, and Buffalo’s Edenwold and Odessa properties are not subject to the Royalty or the ROFO as part of the current Royalty Agreement.
Mr. Steve Halabura, P.Geo., Chief Executive Officer and Director of the Company, commented: “Altius knows Saskatchewan potash as well as anyone in the capital markets. They hold royalties on the mines that built this province’s reputation as the world’s potash leader, and their decision to take a royalty on Disley West is a strong endorsement of both the asset and our Horizontal Line-Drive approach. This agreement delivers significant capital at a pivotal moment, as we drive the IPM toward first production.”
Altius Ownership of Saskatchewan Potash Royalties
Altius is one of the largest holders of potash royalties in Saskatchewan, the world’s premier potash jurisdiction. Through its controlling interest in the Potash Royalty Limited Partnership, Altius earns royalty revenue from six long-life producing potash mines operated by two of the world’s largest potash producers:(2)
Table 1: Current Altius Potash Royalties
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