Sino-Agri is the subsidiary of one of China’s largest fertiliser companies, CNAMPGC Holding Limited Corporation.
The Lake Wells Potash Project consists of over 500 square kilometres of palaeovalley and salt lake terrain in the Yilgarn Craton.
The agreement envisages high level commercial terms for sales volumes of up to 100,000 tonnes per annum of SOP, or 30% of the estimated production from stage 2 at Lake Wells.
Importantly, the agreement lays a strong foundation as Australian Potash seeks to develop relationships with key players in the world’s largest fertiliser market.
The ability to secure sales volumes into larger regional markets is an important component of the company’s strategy, while also aiming to secure market share in the Australian market.
Meanwhile, Australian Potash will focus on strengthening its relationship with Sino-Agri in parallel with the project advancement at Lake Wells.
Sino-Agri is one of China’s largest fertiliser corporations with 60 years of operating history and is a producer, trader and distributor of a range of domestic and imported fertiliser products.
Australian Potash’s upcoming activity at Lake Wells in 2017 will include the commissioning of pilot evaporation ponds and commencement of stage 2 test-pumping program.
The company will also install stage 2 test-production bores, continue resource expansion programs and commence a feasibility study.
Australian Potash’s share price increased circa 58% since the start of 2017, last trading at $0.12.