Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) (FRA:W1D) (OTCMKTS:WHELF) has signed a binding term-sheet for the sale of premium water-soluble sulphate of potash (SOP) from its Lake Way Project in Western Australia.
The company is currently developing the project, which a bankable feasibility study (BFS) released last year valued at $696 million pre-tax.
Under this new 5-year offtake agreement, Salt Lake will initially provide 4,000 tonnes per annum of SOP.
Importantly, the company has now secured offtake for 224,000 tonnes per annum of the 245,000 tonnes per annum forecast to be produced from Lake Way.
The remaining tonnes are expected to be sold into local and spot markets.
Mitsui one of five offtake partners covering six continents
Mitsui is a major global manufacturer and distributor of fertilisers and will deliver the product into key Asian markets.
Additionally, Mitsui and Salt Lake are developing a further agreement for additional tonnes of water-soluble SOP to be sold into emerging markets.
Construction progressing on schedule
Construction of evaporation ponds and trench infrastructure commenced in November 2019 with over 400 hectares of brine evaporation pond area nearing completion and 35 kilometres of brine abstraction trenches planned to complete.
225 hectares of brine evaporation ponds were commissioned and in operation at 31 December 2019, and producing harvest salts for plant commissioning in the December quarter of 2020.