Atlas Salt Closes C$15 Million Financing & Advances Great Atlantic Salt Project Toward Construction

Atlas Salt Inc. (TSXV: SALT | OTCQX: SALQF | FRA: 9D00) has closed a C$15.15 million financing and commenced ground clearing at its Great Atlantic Salt Project in western Newfoundland and Labrador, marking a shift from planning into active pre-construction work. The proceeds are directed at engineering, permitting, procurement planning, site preparation, and assembling the funding package required to move the project toward a construction start.

The Great Atlantic Salt Project is the only proposed new underground salt mine in North America to have completed an independent feasibility study, and the company is now running several pre-construction programs in parallel.

A Financing That Reflects Investor Demand

The C$15.15 million financing was co-led by Ventum Financial Corp. and Raymond James Ltd. It was originally set at C$10 million when announced on May 31, 2026, and was upsized to C$15 million on June 01, 2026 after investor demand exceeded the initial offering size. The deal closed on June 11, 2026.

President and Chief Executive Officer (CEO) of Atlas Salt Nolan Peterson said the proceeds would fund several pre-construction programs running at the same time:

"The proceeds from this financing will enable us to accelerate our ongoing early works and site preparation program, advance detailed engineering, and continue to build momentum with our strategic project partners."

The programs being funded simultaneously include land clearing and site preparation, detailed engineering design, the completion of remaining government permits, planning for major equipment orders, and assembling the construction funding package.

Ground Clearing Already Underway

Site work at the Great Atlantic Salt Project began before the financing closed. Ground clearing started February 27, 2026, following approval from the Government of Newfoundland and Labrador at the Cabinet level and the signing of a formal community and employment agreement with the province. The approval confirmed that all environmental requirements for the early works program had been satisfied.

Peterson noted that the company's momentum extended beyond the financing itself. "We are well-positioned to deliver on our near-term development milestones and to create lasting value for our new and existing shareholders," he said.

The start of physical site activity ahead of the financing gives outside funders and partners visible, on-the-ground progress to evaluate rather than plans alone.

Project Location & Regional Context

The Great Atlantic Salt Project is located near St. George's, on the western coast of Newfoundland and Labrador. The project is designed as an underground salt mine using electric-powered equipment and sits directly beside a deep-water port, allowing salt to be loaded onto vessels without additional transport costs to reach an export terminal.

The project is being developed to address a supply gap in the North American salt market. North America has not opened a new underground salt mine in nearly 3 decades, and the continent relies on imports to meet a portion of annual demand. The mine is designed to produce salt annually over a multi-decade operating life, targeting consumers across Atlantic Canada, Quebec, and the US East Coast.

Project Economics

An independent feasibility study completed in September 2025 valued the Great Atlantic Salt Project at C$920 million after taxes. The study estimated a construction cost of C$589 million and a payback period of 4.2 years from the start of production. The mine is projected to generate an average of C$188 million per year in after-tax cash over its operating life.

Equipment Supply Agreement

A key element of the eventual construction funding package is Atlas Salt's agreement with mining equipment supplier Sandvik Mining. In February 2026, Sandvik expanded its equipment supply commitment for the project, increasing the value of its agreement from the level set in September 2024. The expanded agreement covers underground mining equipment required for the project's design.

Sandvik has also indicated it may provide financing for a portion of that equipment cost, though that arrangement has not been finalised and remains subject to Sandvik's own internal approval process. If confirmed, a Sandvik financing contribution would reduce the amount Atlas Salt needs to raise from other sources to complete its construction funding package.

Management Transition

Alongside its pre-construction progress, Atlas Salt announced on June 22, 2026 that CFO Jeff Kilborn has resigned for personal reasons. The company has begun a search for a successor, with finance and accounting functions continuing under the oversight of senior management and the Board of Directors in the interim.

Peterson acknowledged Kilborn's contributions during the company's development phase:

"On behalf of the Board and the entire Atlas Salt team, I would like to sincerely thank Jeff for his professionalism, leadership and commitment to the Company. We are grateful for the contributions he has made during a significant period in Atlas Salt's evolution and wish him every success in his future endeavors."

What Comes Next

Atlas Salt's next milestones include the completion of remaining government permits, the advancement of detailed engineering, and assembling the construction funding package needed to break ground. With site preparation already underway and a major equipment supplier engaged, the company is positioning itself to move from the planning stage into full construction readiness.

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