Centrex Metals Limited (ASX:CXM) has secured its second sales contract for high-quality phosphate rock concentrate from its Ardmore Project in north-west Queensland.
Leading New Zealand-based nutrient supplier Ballance Agri-Nutrients previously trialled 400 wet tonnes of run-of-mine ore from Ardmore to produce single superphosphate.
The company has now agreed to purchase a further 5,000 wet tonnes of concentrate to be produced as part of the trial production process anticipated to begin in 2019.
Contract validates “quality of Ardmore’s product”
Centrex chief executive officer Simon Slesarewich said: “The company is very pleased to be partnering with one of New Zealand’s leading fertiliser producers in Ballance.
“The contract validates the quality of Ardmore’s product and its attractiveness to target customers.
“We would like to thank the team at Ballance for their support and we look forward to a long-term relationship as we progress Ardmore towards commercial production.”
Discussions are ongoing with a select number of other potential long-term offtake customers in regard to taking trial shipments.
This process will be integral in validating the premium product from Ardmore and securing offtake contracts, which will underpin the financing of full-scale operations.