28 May 2013 07:00
28 May 2013
Sirius Minerals Plc
Initial UK and European Sales Agreements
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") are pleased to announce that it has entered into a number of agreements with fertilizer distributors and manufacturers operating in the UK and Central Europe covering the future sales of Polyhalite from the York Potash Project.
The agreements are framework sales agreements ("FSA") and set out volume commitments and a basis for cooperation between the parties, in relation to entering into formal sales contracts closer to the time of first production - as is the fertilizer industry standard. The volume committed to in the FSAs signed to date amounts to 310,000 tonnes per annum including 60,000 tonnes mainly targeted for sales in the UK. The agreements are with established fertilizer manufacturers and distributors, rather than trading businesses and will remain confidential at this time. The pricing structure is to be agreed at the time of entering into the formal sales contract based on market conditions at the time.
These FSAs are in addition to the marketing agreement entered into with KEYTRADE AG for up to 1.75 million tonnes per annum. The markets covered by these agreements represent only a small percentage of the total European fertilizer market and highlight the opportunity for further sales across the UK and Europe.
In addition to the above, discussions for polyhalite supply agreements in various forms remain ongoing with a range of customers including major distributors and fertilizer blenders around the world. While these discussions are at various stages and are confidential, should they reach a successful conclusion the total implied demand from these discussions including the tonnes allocated to the KEYTRADE markets would exceed the initial production target of 5mtpa from the York Potash Project.
Chris Fraser, Managing Director and CEO of Sirius, commented:
"This further customer endorsement of the market for polyhalite is just the beginning but demonstrates a clear need and market for this sustainable multi-nutrient form of potash. Customers both here in the UK and around the world are seeing significant agronomic value in our products and are encouraging us to reach production as fast as possible."
For further information, please contact:
Sirius Minerals Plc | |||
Investor Relations
| Tel: +44 8455 240 247
| Email: ir@siriusminerals.com | |
NOMAD/ Joint Broker | Joint Brokers | Joint Brokers | Media Enquiries |
Macquarie Capital (Europe) Limited | Liberum Capital Limited | Jefferies Hoare Govett | Pelham Bell Pottinger |
Steve Baldwin, Raj Khatri | Michael Rawlinson, Clayton Bush | Peter Bacchus, Thomas Rider | Charles Vivian, Lorna Spears |
Tel: +44 20 3037 2000 | Tel: +44 20 3100 2222 | Tel: +44 20 7029 8000 | Tel: +44 20 7861 3232 |
About Sirius Minerals Plc
Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (North Yorkshire), the United States (North Dakota), and Australia (Queensland). Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.