Australian Potash Ltd has announced the signing of the fourth binding term sheet in the Offtake Programme with Tier 1 partner HELM AG for the supply of 30,000 tpy of K-BriteTM sulfate of potash from the Lake Wells Sulfate of Potash Project (LSOP).
- Binding 10-year take-or-pay term sheet for 30 000 tpy of K-Brite.
- Pricing on Net Realised Price basis incentivising HELM to achieve the highest sales price in the market jurisdictions covered by the agreement. Geographic rights for distribution through several European jurisdictions.
- The parties’ obligations under the binding term sheet are subject to and conditional on long form documentation being executed by 15 September 2020, and APC reaching a final investment decision to develop the LSOP by 31 March 2021.
- Total offtake under binding term sheet agreements including Redoxi , Migaoii , Mitsuiiii and HELM: 130,000 tpy.
- Output under offtake agreements: >85% of DFS projected output of 150,000 tpy.
Managing Director and CEO, Matt Shackleton, commented: “This agreement with Tier 1 international chemicals and fertilizer distributor HELM AG is a defining moment for Australian Potash and the K-Brite brand. Our Lake Wells product will be distributed into the lucrative and expanding European fertilizer market through HELM’s dominant brand and market leading position.
“HELM’s clear strategic direction is to expand their value in brand across the world’s major fertilizer markets, and the marketing and distributorship of SOP forms an integral piece in their offering. It is enormously gratifying that APC’s K-Brite brand will be central to that programme on the European continent.
“The APC team are progressing rapidly along the Approvals Pathway, with firm dates now agreed with the EPA, and the Financing Programme, with parties, including NAIF, moving into due diligence. To that point, and notably, more than 85% of the DFS projected output is now under contracted sale."
Read the article online at: https://www.worldfertilizer.com/project-news/13082020/australian-potash-ltd-executes-fourth-agreement-in-offtake-programme/