04:23 PM EST, 01/10/2025 (MT Newswires) -- Sage Potash ( SGPTF ) on Friday reported an previously announced equipment-purchase transaction will now be carried out through an alternative equipment-leaseback arrangement.

The company said a leaseback is more financially beneficial than the direct-purchase transaction with a subsidiary of International Process Plants (IPP).

The $500,000 cash deposit will be refunded to the company and offset against the future equipment leaseback arrangement.

The company still intends to carry out a non-brokered private placement of up to 12.5 million common shares at $0.20 each, for gross proceeds to Sage of up to $2.5 million.

The proceeds of the offering will be used for general working capital purposes.

Sage shares closed down $0.015 to $0.25 on the Toronto Stock Exchange.