Sirius Minerals Plc Maiden animal feed take-or-pay offtake agreement (8430B)
January 12 2015 - 2:00AM
UK Regulatory
TIDMSXX
RNS Number : 8430B
Sirius Minerals Plc
12 January 2015
12 January 2015
Sirius Minerals Plc
Maiden animal feed take-or-pay offtake agreement
-- 50,000tpa take-or-pay agreement with a leading distributor of
high quality mineral animal feed ingredients in North America,
including option for an additional 25,000tpa
-- Long term supply agreement opening a new market for POLY4 in
partnership with an established animal feed distributor
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY)
("Sirius" the "Company") announce its maiden take-or-pay offtake
agreement in the animal feed mineral supplement market.
The global mineral supplement market is estimated to be worth
approximately US$2 billion annually. This market is rapidly growing
at annual growth rates of between 4 and 8%. This growth is
primarily being driven by the rising incomes in large population
countries and the associated shift to diets that are higher in
protein. This same fundamental demand driver is also resulting in
increasing percentages of higher value fruit and vegetables in
people's diets. Polyhalite, with its unique blend of
multi-nutrients and lack of chlorides, is a valuable source of
supply for these two rapidly expanding sectors of food
production.
Testing results have confirmed the product's viability as a
mineral feed additive where the nutrients contained in POLY4, which
is the product name for polyhalite from the Company's proposed York
Potash Project, provide essential minerals which promote optimal
animal health and livestock production performance.
This seven year take-or-pay agreement, with an option to be
extended by a further three years, is on a fixed price basis that
is competitive with established products in the animal feed market.
The volume commitment in the agreement is structured on a schedule
to coincide with production from the York Potash Project rising to
50,000tpa from year 3 and has an option to be increased by an
additional 25,000tpa.
Chris Fraser, Managing Director and CEO of Sirius,
commented:
"We are continuing to make great progress in allocating our
expected production from the York Potash Project and it is
particularly exciting to sign our maiden animal feed offtake
contract to confirm new market opportunities for POLY4."
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) Ken Fleming, 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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