The offtake agreement is subject to the parties agreeing and entering into a formal bidding offtake agreement with terms consistent with the terms sheet and the satisfaction of certain conditions precedent including, but not limited to, completion of due diligence by K+S. It is proposed that Kalium will provide 75 000 tpy of SOP to K+S over an initial term of 10 years.
Brett Hazelden, Kalium Lakes Managing Director, said: “We are delighted to have reached agreement with K+S who is one of the world’s pre-eminent SOP producers and distributors. This terms sheet brings the Beyondie SOP Project a step closer to becoming Australia’s first SOP producer, with the aim of supplying Australian and overseas farmers with a locally produced product.
“We welcome K+S as a long-term partner and look forward to working together to optimise the project given K+S’ extensive expertise in design, construction and operation of SOP facilities.
“With the terms sheet for SOP offtake now completed, the Kalium Lakes team is now fully focused on concluding documentation for a binding offtake agreement with K+S in the coming months, as well as finalising the bankable feasibility study, which will occur in parallel with arranging financing for the Beyondie SOP Project’s development.”
Alexander Baart, K+S Asia Pacific CEO, added: “K+S is pleased to have concluded this terms sheet with Kalium Lakes in respect of SOP produced at the Beyondie SOP Project and look forward to building a strong and mutually beneficial relationship.”
Read the article online at: https://www.worldfertilizer.com/potash/21062018/kalium-lakes-signs-offtake-terms-sheet-with-ks/