When I used ReptiChips, I just left it stacked in the plastic covered bricks in the corner of the room with the snakes. If you order the stuff online, there is close to a zero chance of it having mites. Mites need a warm, humid area. A dry plastic bag of substrate being thrown around in the back of a cold FedEx truck for 5 days is not going to where they are going to want to lay eggs especially since I would have no idea how snake mites would live in the back of a FedEx truck.
I actually asked Bob at Pro Products about using PAM on ReptiChips or Eco Earth or stuff like that. He said it can be used on any substrate. Just the drying and outgassing time will vary. Not exactly what I was looking for in the answer but he did say he prefers paper as it easier and very effective.
I used big bails of American Excelsior aspen for years as well as Eco Earth and ReptiChips and I have never gotten mites from substrate. I do order it online though and the aspen I used to pick up from Bean Farm as I live close to them. Just avoid questionable pet shops. I mean like I said, think like a mite.....ok I got this sweet humid, warm cage with dark places to lay my eggs and an easy food source. Do I want to lay my eggs here or do I want to have to travel outside to the dry, cold, well lit area and lay my eggs in this place.
To answer your question though, I would either bake it at like 140F or freeze it. I don't think I would spray PAM on a substrate that will stay damp.