Sirius Minerals Plc Additional take-or-pay offtake agreement and sales (2510A)
December 19 2014 - 2:00AM
UK Regulatory
TIDMSXX
RNS Number : 2510A
Sirius Minerals Plc
19 December 2014
19 December 2014
Sirius Minerals Plc
Additional take-or-pay offtake agreement and sales
commitments
-- 300,000 tonnes per annum with an option for an additional
150,000 tonnes per annum take-or-pay agreement with a leading South
American fertilizer distributor
-- Additional letters of intent for 396,000 tonnes per annum
-- Total sales commitments now at 6 million tonnes per annum
with options for additional 0.9 million tonnes per annum
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY)
("Sirius" or the "Company") announce further sales progress for
polyhalite from the York Potash Project.
The Company has entered into a further take-or-pay agreement
with a leading South American fertilizer distributor for sale into
several key markets in that region. This agreement is a conversion
of an existing sales commitment that was entered into during
2013.
The seven year agreement from first production, with an option
for a further three years, builds up to an annual sales volume of
300,000 tonnes per annum over the initial ramp-up period of the
York Potash Project. In addition the agreement contains an option
for the customer to increase the minimum amount in the agreement by
an additional 150,000 tonnes per annum. The pricing mechanism in
the agreement is based on a formula linked to the market price of
nutrients contained within the Company's 'POLY4' product and is in
line with previous guidance.
The Company has also secured additional sales commitments in the
form of letters of intent between customers and Sirius' marketing
partner KEYTRADE. These total 396,000 tonnes per annum and relate
to certain markets in South East Asia, Africa and Europe.
The Company now has a total of six million tonnes of annual
sales commitments in various forms. The current total of
take-or-pay agreements within the total commitments is now 2.05
million tonnes per annum. In addition these take-or-pay customers
hold options for up to an additional 0.9 million tonnes of annual
sales volumes.
Chris Fraser, Managing Director and CEO of Sirius,
commented:
"We have made tremendous progress during 2014 defining a strong
and growing global market for polyhalite from the York Potash
Project. Customers recognise the value proposition that our
commercial arrangements can deliver and the strong results we have
achieved in our global agronomy programme."
For further information, please contact:
Sirius Minerals Plc
Investor Relations Email: ir@siriusminerals.com Tel: +44 845
524 0247
--------------------------- ------------------------------- -------------------
Joint Brokers
Liberum Capital Limited Clayton Bush Tel: +44 20 3100
2222
Macquarie Capital (Europe) Steve Baldwin, Raj Tel: +44 20 3037
Limited (NOMAD) Khatri 2000
WH Ireland Adrian Hadden Tel: +44 20 7220
1666
--------------------------- ------------------------------- -------------------
Media Enquiries Jos Simson, Mike Tel: +44 20 7920
Tavistock Bartlett, 3150
Emily Fenton
--------------------------- ------------------------------- -------------------
Warrant Trading Enquiries
Liberum Capital Limited Simon Smith Tel: +44 20 3100
2171
--------------------------- ------------------------------- -------------------
About Sirius Minerals Plc
Sirius Minerals is a potash development company with properties
in the United Kingdom (North Yorkshire) and the United States
(North Dakota). Its primary focus is the development of the York
Potash Project which has the world's largest and highest grade
deposit of polyhalite, a multi-nutrient form of potash containing
potassium, sulphur, magnesium and calcium. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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