(Alliance News) - Salt Lake Potash Ltd said Monday it has signed three binding term sheets for the sale of premium sulphate of potash from its Lake Way project in Western Australia.
Salt Lake said the three agreements, with three separate fertiliser distributors, will see its potash be distributed to Middle East & Africa, to North America and Europe, and to South America.
Unifert - which will distribute the potash in the Middle East & Africa - has agreed to buy 60,000 tonnes per annum, Indagro - the North America and Europe distributor - will acquire 50,000 tonnes per annum and Fertisur has agreed to 60,000 tonnes per annum for South America.
Salt Lake Potash Chief Executive Tony Swiericzuk said: "We are delighted to have finalised these offtakes for the sale and distribution of premium sulphate of potash product that will be produced at our Lake Way project.
"Binding agreements with industry leaders, Unifert, Indagro and Fertisur support our marketing strategy of targeting geographical markets with strong growth in crops that benefit most from sulphate of potash fertilisers. We continue to progress discussions with other leading fertiliser companies for the sale of our remaining sulphate of potash production."
As a result of these agreements, 70% of planned production, over a five year period starting in 2021, has been arranged for sale, the company said.
Salt lake Potash also said discussions have been "substantially advanced" with a tier-1 fertiliser group for the sale of a "material" quantity from Lake Way.
Shares in Salt Lake Potash were flat in London on Monday at 39.50 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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