18:00 Wed 18 Dec 2019
Salt Lake Potash Ltd - 50 KTPA Offtake Agreement
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AIM/ASX Code: SO4
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50KTPA PRODUCTION OFFTAKE SECURED WITH TIER 1 INTERNATIONAL FERTILIsER COMPANY
HIGHLIGHTS
§ Binding term sheet signed with world leading fertiliser company with a volume commitment of 50,000t per annum for 10 years
§ SO4 has now secured 220,000t per annum of offtake representing 90% of total planned production for five and ten year terms from commencement of shipping in 2021 with take or pay arrangements on product resale
§ Final purchase agreements based on the executed term sheets are well advanced with each of the offtake couterparties
§ Binding agreements support SO4's strategy of diversifying distribution across key global premium SOP seabourne markets
TONY SWIERICZUK
SO4 Chief Executive Officer
"It is an outstanding achievement for SO4 to secure such a world class partner in HELM for the sale and distribution of premium SOP product that will be produced at our Lake Way Project . This brings our committed sales to 220ktpa representing 90% of the total planned production from Lake Way. This is a key milestone for SO4 and supports our funding and development strategy for the Lake Way Project ."
OFFTAKE TERM SHEET
SO4 has signed a binding agreement with one the the worlds leading independent chemicals and fertiliser companies for the sale of 50,000t per annum into key geographical markets within South East Asia and the Middle East.
HELM AG
· Fertilisers
· Chemicals: Feedstocks and Derivatives
· Crop Protection
· Active Pharmaceutical Ingredients and Pharmaceuticals
Today HELM is one of the world's major independent chemicals and fertiliser marketing enterprises with more than 100 subsidiaries and sales offices in over 30 countries. Its specific local knowledge allows access to the major markets worldwide.
Table 1: HELM Term Sheet - Key Terms
Terms |
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Counterparty |
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Conditions Precedent |
Effective upon Benchmark Price to be agreed Definitive Specifications to be agreed |
Product |
Lake Way SOP representative of the typical values in the following specifications: - High grade potassium o K 44% o K2O 53% o Cl <1.0% - Fertigation Grade - Water soluble SOP o K 44% o K2O 53% o Cl <0.1% o Insolubles <0.09% o Solubility 11.9g/100gH2O o Dissolution >95% in 1 minute |
Term |
10 years from commencement of production |
Territory |
Asia and Middle East (specified by country) |
Quantity |
20% of production during ramp up and 50,000t per annum thereafter with effective take or pay arrangement on product resale |
Price |
Net-back price mechanism agreed |
For further information please visit www.so4.com.au or contact:
Tony Swiericzuk / Clint McGhie |
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Tel: +61 8 6559 5800 |
Colin Aaronson / Richard Tonthat / Ben Roberts |
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Tel: +44 (0) 20 7383 5100 |
Derrick Lee / Peter Lynch |
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Tel: +44 (0) 131 220 6939 |
Rupert Fane / Ernest Bell |
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Tel: +44 (0) 20 7907 8500 |
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Appendix A - Competent Person Statement and Disclaimer
Competent Persons Statement
The information in this announcement that relates to Production Targets and Ore Reserves for Lake Way is extracted from the announcement entitled 'Outstanding Bankable Feasibility Results for Lake Way' dated
Production Target
Forward Looking Statements
This announcement may include forward-looking statements. These forward-looking statements are based on
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