Crystal Peak Minerals is moving closer toward construction at the Sevier Playa project in Utah after receiving a record of decision from a regulator.
Canadian fertilizer developer Crystal Peak Minerals (TSXV:CPM,OTC:CPMFF) is moving closer toward construction at the Sevier Playa project in Utah after receiving a record of decision (ROD) from a state regulator.
Crystal Peak holds mineral leases for more than 124,000 acres on the Sevier Playa in Millard County, with plans to produce high-quality fertilizers, including sulfate of potash (SOP).
The ROD is one of the final steps in the environmental impact process, which assesses the potential risks and effects a project may have on local ecosystems.
Joseph Balash, assistant secretary of the interior for land and minerals, and a representative from the Utah Department of Natural Resources, attended a ceremonial signing of the ROD on Tuesday (August 27) in Salt Lake City.
“Obtaining the ROD is great news for investors. It provides Crystal Peak with a license to operate in a business-friendly, highly reputable jurisdiction where the license is not jeopardized by political vagaries,” Crystal Peak CEO John Mansanti told the Investing News Network.
“Permit risk has become an important impediment to investment in many natural resource projects, so obtaining the ROD significantly de-risks our project,” he added.
The Sevier Playa resource is a mineral-rich brine that is known to contain potassium, sulfate and other beneficial minerals used in agriculture. Due to the unique geography of West-Central Utah, Crystal Peak plans to use a solar evaporation process to produce its fertilizers.
According to the company, the method is also cost effective, allowing for maximum value in the production of SOP, a premium specialty fertilizer used for high-value crops.
From here, Crystal Peak will continue to work on getting its potash project into production.
“With the ROD in hand, the next steps are for Crystal Peak to complete optimization engineering, finalize offtake agreements and obtain project financing. With financing in place, the project will advance to construction. Having the ROD is expected to accelerate these steps; obtaining permits is often a threshold event for obtaining offtake agreements and financing,” Mansanti said.
Shares of Crystal Peak were up 16.67 percent on Thursday (August 29), trading at C$0.14.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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