Sirius Minerals Plc announces the signing of a take-or-pay supply agreement between its wholly owned subsidiary York Potash Ltd, OFD Supply Inc. and Cibrafertil Companhia Brasileira de Fertilizantes for the supply and resale of POLY4 into Brazil and certain other countries in South America.
"We are delighted to have signed these supply and investment agreements with a leading player in the South American fertilizer market with a proven track record and ambitious growth plans," said Chris Fraser, Managing Director and CEO of Sirius. "Cibra is a perfect partner for distributing POLY4 into this key market, where trials have demonstrated how it can significantly enhance farming economics. The Cibra offtake agreement takes us beyond our targeted 7 million tpy and is a major step forward as we look to complete Stage 2 financing and building our global fertilizer business."
Linked to the supply agreement, Sirius has also agreed to acquire, through one of its wholly owned subsidiaries, a 30% equity interest in each of the Cibra Group Companies for a total of US$95 million fully paid ordinary shares of Sirius.
"We are excited to be entering into this long-term partnership with Sirius to deliver POLY4 into Brazil and other key markets of South America," said Santiago Franco, CEO of Cibra. "The supply agreement provides Cibra with access to a unique multi-nutrient product that will play an important and valuable role in one of the fastest growing fertilizer markets in the world. POLY4 will change the shape of the fertilizer market in South America and Cibra will be at the heart of driving the growth and adoption of this innovative sustainable product across the region."
Read the article online at: https://www.worldfertilizer.com/project-news/17092018/sirius-minerals-signs-supply-agreement-for-south-america/