Atlas Salt Signs MOU with Canadian National to Advance Rail Logistics for Great Atlantic Salt Project

Atlas Salt Inc. has entered into a non-binding Memorandum of Understanding (MOU) with Canadian National Railway Company (CN), one of North America's leading Class I railroads, to jointly evaluate multimodal rail solutions for distributing de-icing salt from the Great Atlantic Salt Project in Newfoundland and Labrador. The MOU is aimed at assessing how integrating rail logistics can reduce the Project's delivered salt costs, expand its addressable market, and improve the Project's economics relative to the Updated Feasibility Study, complementing a distribution strategy that has so far relied primarily on marine shipping and trucking.

Company Overview

Atlas Salt (TSXV: SALT | OTCQX: SALQF | FSE: 9D00) is developing North America's next salt mine and is committed to responsible and sustainable mining practices. With a focus on innovation and efficiency, the company is positioned to make significant contributions to the North American salt market while upholding its values of environmental stewardship and community engagement.

MOU Establishes Framework for Rail Evaluation

Under the Memorandum of Understanding (MOU), Atlas Salt and Canadian National Railway Company (CN), one of North America's leading Class I railroads, will jointly evaluate the use of CN's bulk freight rail network and ancillary logistics relationships. The MOU aims to assess how integrating rail logistics can reduce the Project's delivered salt costs, expand its addressable market, and ultimately improve the Project's economics relative to the Updated Feasibility Study.

The two parties intend to explore three areas: rail movement of de-icing salt on lanes served by CN's network, railcar supply and equipment solutions to support Atlas Salt's distribution requirements, and transload arrangements linking Atlas Salt's marine distribution with CN's inland rail network and logistics partnerships.

The MOU is non-binding and does not commit either party to a definitive agreement. Atlas Salt and CN intend to work together in good faith to develop the scope, terms, and commercial framework of a potential multimodal rail logistics partnership.

Complementing a Marine-Centric Distribution Model

The framework is designed to complement Atlas Salt's marine-centric logistics model, under which product is shipped by vessel from the Port of Turf Point to discharge ports along the eastern seaboard. Rail is evolving into a significant component of Atlas Salt's broader multimodal distribution strategy, which the Company continues to optimize to reduce delivered cost, expand its addressable market, and potentially expand profitability. In the Company's updated feasibility study for the Project, delivery from port to final customer was contemplated to be completed almost entirely by trucking. Understanding the feasibility of transitioning much of this distribution to rail could significantly improve project economics.

Chief Executive Officer and Director of Atlas Salt, Nolan Peterson, commented: 

"Logistics is the single largest driver of delivered cost in the de-icing salt business, and we are systematically engineering every leg of our supply chain to maximize our competitive advantages. Collaborating with a partner of CN's caliber to explore building out the rail component of our strategy is an important step, and it reflects the disciplined, cost and value focused approach we are taking across the Project."

Vice-President Petroleum, Chemicals & Regional at CN, Buck Rogers, commented: 

"CN is committed to working with customers to develop efficient and resilient supply chain solutions. We look forward to exploring with Atlas Salt how our network can support the movement of its product to markets across Eastern Canada and beyond."

Next Steps

Atlas Salt and CN will now work to develop the scope, terms, and commercial framework of a potential multimodal rail logistics partnership, building on the non-binding MOU.