LONDON (Alliance News) - Salt Lake Potash Ltd said on Tuesday it has signed a memorandum of understanding with Chinese fertiliser distribution company Sinofert Holdings Ltd, as a basis for the second offtake agreement for the Goldfields Salt Lakes Project.
The agreement will provide Sinofert with sales and offtake rights for up to 50% of all Sulphate of Potash production from the project, for distribution into China, for an initial term of eight years from the start of 2020.
Salt Lake plans to start initial construction of a Demonstration Plant and the project producing up to 50,000 tonnes per annum of sulphate of potash, with plans to distribute production through a small number of global distribution partnerships.
The memorandum is non-binding and outlines key-terms for a potential formal offtake agreement expected to be completed before 2020.
"We are very pleased to have taken this important step to partner with Sinofert in further establishing distribution channels for the Goldfields Salt Lakes Project. Our model of distribution partnerships is vital for what is essentially an export Project and Sinofert is the leading participant in the world's largest fertiliser market, where more than half of the world's SOP is both produced and consumed," said Chief Executive Officer Matt Syme.
Shares in Salt Lake Potash were down 5.3% at 26.05 pence on Tuesday.