Sirius Minerals Plc Take or Pay Offtake Agreement (1056K)
December 24 2015 - 2:00AM
UK Regulatory
TIDMSXX
RNS Number : 1056K
Sirius Minerals Plc
24 December 2015
24 December 2015
Sirius Minerals Plc
Take or Pay Offtake Agreement
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY)
("Sirius" or the "Company") announce the signing of a major take or
pay offtake agreement in China with Huaken International ("Huaken")
for the purchase of polyhalite from the York Potash Project ("the
Project").
Huaken was established in 1992 as a subsidiary of China State
Farms Agribusiness Group and later registered as a joint stock
company in 1997 and authorised to operate an import and export
businesses including fertilizers, rubbers, steels and other
products. Of note, Huaken is one of a restricted list of companies
in China, with the right to import potassium fertilizer.
The agreement is for a period of seven years from first
production and pricing is based on a formula linked to inputs that
are consistent with a number of the Company's other offtake
agreements. Pricing is currently in line with previous market
guidance provided by the Company. The volume of the contract is for
500,000 tonnes in year seven (ramping up following construction of
the Project). Huaken is purchasing the polyhalite to use it as a
soil conditioner in China.
Studies have demonstrated that in addition to its proven role as
a multi nutrient fertilizer, high quality polyhalite can also play
a valuable role as a soil conditioner. Research undertaken on
polyhalite by the Company has shown the benefits of adding it to
highly acidic soils (of particular relevance to large areas of
China). Polyhalite has shown to benefit soils, making them more
resistant to soil erosion and also to have demonstrated suppressive
effects on soil borne pathogens.
Chris Fraser, Managing Director and CEO of Sirius, comments:
"We are delighted to sign this important agreement with our
partners in China and we look forward to working very closely with
them for the long-term. Polyhalite's multi nutrient qualities have
useful soil conditioning properties and it can assist in helping
countries like China restore agricultural productivity and maintain
food security for future generations."
For further information, please contact:
Sirius Minerals Plc
Investor Relations Email: ir@siriusminerals.com Tel: +44 845
524 0247
------------------------- ------------------------------- ---------------
Joint Brokers
Liberum Capital Limited Neil Elliot, Tel: +44 20
(NOMAD) Clayton Bush, 3100 2222
Jill Li
J.P. Morgan Cazenove Ben Davies, Jamie Tel: +44 20
Riddell 7742 4000
WH Ireland Adrian Hadden Tel: +44 20
7220 1666
------------------------- ------------------------------- ---------------
Media Enquiries Jos Simson, Mike Tel: +44 20
Tavistock Bartlett, 7920 3150
Emily Fenton
------------------------- ------------------------------- ---------------
About Sirius Minerals Plc
Sirius Minerals is the fertilizer development company focused on
the development of the York Potash Project in the United Kingdom,
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
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