Potash Royalties NE of Elstow

[gofast]

Been along time since this was talked about on Agriville. We have mineral rights for a 1/2 section NE of Elstow. Saskatchewan Potash approached us wanting to buy the mineral rights. Does anyone have any idea how much the royalty payments are from the Potash companies? Been having a very hard time finding out any information on royalties paid out. Land man says 300 a month, would that be accurate? Private message me if we are not allowed to talk numbers openly.

[jazz]

Are you talking leasing rights or selling them outright.

$300 a month sounds like about right for leasing the rights but no extraction happening.

I mean if they put a mine there, it changes everything. What are the prospects. Sometimes these companies might just gather leases for their reserves but nowhere near ever getting around to exploiting them.

I have a lease signed on my land for a water line for a potash plant. I signed that a decade ago and still no plant.

I personally wouldnt sell mineral rights.

[gofast]

Are you talking leasing rights or selling them outright.

$300 a month sounds like about right for leasing the rights but no extraction happening.

I mean if they put a mine there, it changes everything. What are the prospects. Sometimes these companies might just gather leases for their reserves but nowhere near ever getting around to exploiting them.

I have a lease signed on my land for a water line for a potash plant. I signed that a decade ago and still no plant.

I personally wouldn't sell mineral rights.

Not selling the rights is what I think too, but to make a decision you kind of need a ball park figure on what the royalties will be. If the royalties are only 300/month like land man states, it will take 27 years to to break even on what they are offering for a buy out.

Allan mine is in, they are tunneling from Allan mine, approx 12 km from mine site currently. Suppose to be hitting our property jan-feb.

The lease for the rights is like 300 a year, the 300/month is what the land man says we would get for royalties.

[Old Cowzilla]

Is that a good price ? How much rock do they have to move to get a tonne of potash?

[LEP]

If they are that close to mining under your property, better look hard at it. $300/month sounds low.

I would recommend hiring a lawyer that is experienced in dealing with this. Shouldn't have to spend too much to make sure you have a fair deal.

I wouldn't rely too heavily on what the landman says.

The time to get it right is now.

[jazz]

Guys with mineral rights and a handful of producing oil wells on a quarter are probably making $30k a month.

Sounds like the land man is giving you the company line.

If they are that close to the property u have a fair bit of leverage but these potash seams run in all directions so I don’t know if they can head another direction.

[Taiga]

I wouldn’t even waste my time on $300/month. You need an independent land man or lawyer.

[AC man]

I would say 300/month is too low. I am not sure how you find out an accurate value. We had a potash company doing some testing in our area about 10 years ago. I am guessing it was Sk. Potash Corp. We were paid around $3000/quarter for this. I owned the mineral rights for one quarter and they offered to buy it for around 40,000. I told them back then 250,000 is the minimum price. They never called me back.

[ColevilleH2S]

Looks to me the potash companies are paying about $17/tonne of KCl to the province on their mineral holdings. How much potash is generally mined from a quarter section?

https://www.schoolofpublicpolicy.sk.ca/research/publications/policy-brief/saskatchewan-potash-taxes-and-royalties-is-it-time-for-a-review.php