Canadian Phosphate Completes Acquisition of Diamond Mountain Phosphate Project in Utah
Key Takeaways
- •Canadian Phosphate completed the acquisition of the Diamond Mountain phosphate project in Utah for total consideration of up to US$3.0 million.
- •The project currently holds a foreign resource estimate of 26.8 million tonnes of Measured and Indicated mineralisation and 23.1 million tonnes of Inferred material, which CP8 aims to convert into a JORC-compliant resource.
- •Diamond Mountain covers approximately 550 hectares and is located adjacent to Simplot's long-running Vernal phosphate mine and beneficiation complex in Utah.
- •Phosphate rock is listed as a US critical mineral due to its importance in agricultural fertiliser production and growing demand from the lithium iron phosphate battery sector.
- •The acquisition complements CP8's existing Wapiti and Fernie projects in Canada, strengthening its platform to supply North American fertiliser and battery markets.
Canadian Phosphate (ASX:CP8) has completed the acquisition of the Diamond Mountain phosphate project in Utah and is moving to fast-track further exploration work at the site.
Phosphate rock is included on the US Government's critical minerals list, reflecting its essential role in agricultural fertiliser production and growing demand from the lithium iron phosphate (LFP) battery sector. The US currently relies on both domestic production—concentrated primarily in Florida, Idaho, North Carolina, and Utah—and imports to meet its phosphate needs.
The company's immediate priority is upgrading the project's current foreign resource estimate of 26.8 million tonnes (Mt) of Measured and Indicated mineralisation, along with 23.1 Mt of Inferred material, into a JORC-compliant mineral resource.
Managing Director and CEO Daniel Gleeson said the company is preparing to launch exploration programmes designed to validate historical data, expand the known mineralised footprint, and support the JORC conversion process.
"Completion of our acquisition of Diamond Mountain is an important step in CP8's strategy to become a major North American phosphate supplier. The project provides scale, in an established US phosphate mining region, adjacent to a long-running 4.0 Mtpa phosphate mine," Gleeson said.
"Diamond Mountain complements CP8's Wapiti and Fernie projects in Canada and strengthens our platform to supply domestic fertiliser and LFP battery markets across North America."
Diamond Mountain is an advanced sedimentary phosphate project covering approximately 550 hectares within the Meade Peak Phospharia Formation. It is situated adjacent to Simplot's Vernal mine and beneficiation complex, an established phosphate operation with a long-running production history.
The project is located in a proven mining jurisdiction with well-developed regional infrastructure and close proximity to major US agricultural markets, as well as the expanding cathode manufacturing sector in North America.
Canadian Phosphate will pay total consideration of up to US$3.0 million to finalise the acquisition.
Prior to market open, CP8 shares were steady at 12.5¢, with a market capitalisation of $48.56M.