Source - RNS
RNS Number : 1891K
Salt Lake Potash Limited
09 April 2018
 

9 April  2018

 

AIM/ASX Code: SO4

 

 

SALT LAKE POTASH LIMITED

Salt Lake Potash and Mitsubishi Enter MOU for Offtake Arrangement

 

Salt Lake Potash (the Company) is pleased to announce that the Company has today executed a Memorandum of Understanding (MOU) with Mitsubishi Australia Limited and Mitsubishi Corporation (Mitsubishi) for the first formal Offtake Agreement for the Goldfields Salt Lakes Project (GSLP).

The formal Offtake Agreement will provide Mitsubishi with sales and offtake rights for up to 50% of the Sulphate of Potash (SOP) production from a Demonstration Plant at the GSLP, for distribution into Asia and Oceania and potentially other markets. 

Salt Lake Potash is completing studies for construction of a Demonstration Plant producing up to 50,000tpa of high quality SOP, and plans to distribute production through a small number of global distribution partnerships.

The MOU is non-binding and sets out the key terms for a subsequent formal Offtake Agreement as the Demonstration Plant is developed. As well as quantities and target markets, the MOU's other terms include:

·      Market pricing and commission mechanisms;

·      Specifications and delivery parameters;

·      Mitsubishi to provide strategic advice on marketing within the region; and

·      The parties to continue discussions regarding funding requirements for the GSLP.

Mitsubishi Australia Limited is a wholly owned subsidiary of Mitsubishi Corporation. Mitsubishi is one of the world's largest trading and investment enterprises that develops and operates businesses across virtually every industry, including industrial finance, energy, metals, machinery, chemicals, and daily living essentials. Its current activities expand far beyond its traditional trading operations to include investments and business management in diverse fields including natural resources development, manufacturing of industrial goods, retail, new energy, infrastructure, finance and new technology-related businesses.

Salt Lake Potash CEO Matt Syme said "We are very pleased to have taken this important first step in establishing offtake and distribution channels for the Goldfields Salt Lakes Project. Our model of distribution partnerships is vital for what is essentially an export Project. Mitsubishi's global pre-eminence in commodities trading and finance and longstanding involvement in Australian industry, give us great confidence that we can build a very cohesive and beneficial partnership over time. Their interest is a strong endorsement of the market outlook for SOP and also of our plans to supply these markets. We anticipate one or two more potential distribution agreements and we believe our patience in aiming for the very best channels and markets is the right approach."

 

For further information please visit www.saltlakepotash.com.au or contact:

Matt Syme/Sam Cordin

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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