Avenira Ltd (ASX:AEV) has signed the first set of supply agreements with two international fertiliser companies for exporting rock phosphate from the Baobab Phosphate Project in Senegal.
Avenira’s 80% owned Baobab project contains an indicated resource of 12.6 million tonnes at 21% P2O5 at 15% P2O5 cut-off grade.
The development of the project is well advanced with mining activities currently underway. The production of first rock phosphate is scheduled during the second half of 2016.
Under the three-year offtake agreements with Actatrade SA and Getax Agrifert DMCC, the buyers will initially purchase between 240,000 and 360,000 metric tonnes per annum of rock phosphate.
This represents more than half of the anticipated annual production.
The product will be delivered from the port of Dakar, with offtake pricing to be based on the global market price for equivalent rock phosphate product and set for semi-annual periods.
By securing these agreements, Avenira has demonstrated the market’s confidence in the Baobab Project’s ability to produce and deliver a desirable product.
Avenira is currently engaged with a number of other parties on further offtake arrangements set to cover the balance of planned annual production.
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