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Agrimin signs binding offtake agreement with Gavilon Fertilizer

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World Fertilizer,

Agrimin has signed a binding offtake agreement with Gavilon Fertilizer, LLC for the supply of 50 000 tpy of sulfate of potash (SOP) produced from the Mackay Potash Project for sale and distribution in the US.

Gavilon is a wholesaler of NPK bulk blending grade fertilizers and has one of the largest distribution systems throughout major agricultural growing areas across the US, including on railroads, rivers and ports. Gavilon imports and manages a wide portfolio of essential plant nutrition products, soluble fertilizers and enhanced efficiency fertilizers in bulk.

Agrimin has now secured offtake agreements for a total of 315 000 tpy of SOP, representing 70% of the Mackay Potash Project’s planned production capacity of 450 000 tpy. In May 2021, Agrimin signed a 10-year binding offtake agreement with Sinochem Fertilizer Macao Limited for the supply of 150 000 tpy and in January 2022, Agrimin signed a 7-year binding offtake agreement with Nitron Group, LLC for the supply of 115 000 tpy.

Mark Savich, CEO of Agrimin said: “Gavilon is another Tier 1 offtaker for Agrimin and we look forward to partnering with them to successfully market and sell Agrimin’s low carbon, organic SOP throughout the US.

“The USA represents an important SOP market and we are delighted to secure an offtake partner which has one of the largest and most efficient wholesale fertiliser distribution networks in the country.

“We have now committed our minimum target of 70% of planned SOP production under long-term offtakes, which is a significant milestone as we advance our Tier 1 Mackay Potash Project to a final investment decision.”

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