Progressive Planet Solutions Inc (TSX-V:PLAN) has announced the finalization of its amended agreement with International Zeolite Corporation (IZ) to purchase a 50% interest in the Bromley Creek zeolite mine in Princeton, British Columbia.
The Kamloops, British Columbia-based company, which provides circular solutions using micronized minerals for the cement and agricultural sectors, said the agreement creates a “systematic payment schedule over the next five years".
The amended agreement outlines the payment details for the 50% interest for the sum of $725,000. According to the firm, $101,933.76 has already been paid to IZ, with PLAN now holding a 7.03% interest in the Bromley Creek zeolite mine.
The remaining $623,006.24 is payable in 20 equal quarterly installments to March 2027, for the remaining 42.97% interest. In addition, IZ will receive a net royalty payment of $4.50 per metric tonne of product mined and removed from the mine. Significantly, Progressive Planet Products remains the operator of the Bromley creek mine.
The amended agreement also formalizes the option granted to Progressive Planet by International Zeolite to acquire up to a 50% interest in a separate group of mineral claims known as the Sun Group also located in Princeton for an additional purchase price of $725,000 exercisable until July 26, 2027.
To date, Progressive Planet has acquired a 2.5% interest by paying $36,250. In addition, Progressive has operated the Bud Bentonite Mine near Princeton for over 24 years, so Princeton is a major operational hub for the company.
"With the Canadian government's recently announced efforts to reduce greenhouse gas emissions from fertilizer use, zeolite holds massive potential for development of slow-release fertilizers and fertilizer optimization," Progressive Planet CEO Stephen Harpur said in a statement.
Prior to 2021, Progressive Planet's zeolite sales comprised a small portion of its revenue. Since then, sales have shot up and one of its Top 10 customers now buys Z-Lite Feed Additive in 25-tonne truckloads. Zeolite is also the major component of Hydr8 Soil Amendment, which Progressive co-packages in partnership with EcoHealth Industries of White Rock.
"The purchase of 50% of the Bromley Creek Zeolite Mine signifies PLAN's commitment to developing zeolite-based fertilizer and soil-amendment products," says Progressive COO Ian Grant. "We have a world-class development team, which is evaluating the efficacy of the Bromley Creek zeolite as a component of nitrogen, phosphorous and potassium fertilizer blends."
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive