(Alliance News) - Salt Lake Potash Ltd said Wednesday it has signed a binding term-sheet with Japanese firm Mitsui & Co Ltd for the sale of water soluble sulphate of potash from its Lake Way project in Western Australia.
Mitsui & Co manufactures and distributes fertilisers for crops and is expected to deliver the product into Asian markets.
The agreement with Mitsui & Co is for the sale of SOP into Bangladesh, Cambodia, Japan, Malaysia, Philippines, South Korea and Sri Lanka over a five-year period.
Salt Lake Potash will initially provide 4,000 tonnes per year of SOP to Mitsui.
Salt Lake Potash has now secured offtake for 224,000 per annum of the total 245,000 per year Lake Way output, with the remaining tonnes expected to be sold into local and spot markets.
Looking ahead, Salt Lake Potash and Mitsui are developing a further agreement for the sale of SOP to be sold into emerging markets.
Shares in Salt Lake Potash - which has offices in London and Perth, Australia - were up 6.2% at 34.50 pence in London on Wednesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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