Sirius Minerals Plc Major offtake agreement upgrade (4177W)
19 August 2015 - 4:00PM
UK Regulatory
TIDMSXX
RNS Number : 4177W
Sirius Minerals Plc
19 August 2015
19 August 2015
Sirius Minerals Plc
Major offtake agreement upgrade
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY)
("Sirius" or the "Company") announce the upgrade of its take or pay
supply agreement ("Agreement") with its existing Fortune 500
US-based agri-business customer.
The initial Agreement, for the supply of polyhalite from the
York Potash Project ("the Project"), was announced on 21 January
2014. It was for 500,000 tonnes per annum of polyhalite for a five
year period, from commencement of production, with a possible
renewal for a further five years. The Agreement counterparty also
had the option to take up to an additional 500,000 tonnes per
annum.
The revised Agreement will see the base amount of polyhalite
supplied tripled to 1.5 million tonnes per annum. The initial
contract term is extended from five years to seven years, with
possible extension options for two additional five year
periods.
The price to be paid under the Agreement will remain
confidential but is still based on a formula linked to the market
price of nutrients contained in polyhalite. To give context on the
significance of the Agreement, on current prices and over a full 17
year period, it represents a multi-billion dollar trade deal
between the UK and US.
The counterparty, which will continue to remain confidential at
this time, is a major US based Fortune 500 agri-business and would
be seen by investors and banks as a premium grade counterparty.
The Company has now secured 3.1 million tonnes per annum of
offtake agreements, with an additional 4.8 million tonnes per annum
in other forms of commitments. These agreements will provide
further assistance in underpinning future financing
requirements.
Chris Fraser, Managing Director and CEO of Sirius, comments:
"We are delighted with this further show of confidence from our
North American partner and look forward to sharing successes
together for decades to come.
"Like many in the industry our customers understand the value of
polyhalite, its multi-nutrient qualities and the fact it can help
farmers get the same or better yields more economically."
For further information, please contact:
Sirius Minerals Plc
Investor Relations Email: ir@siriusminerals.com Tel: +44 845
524 0247
--------------------------- ------------------------------- ---------------
Joint Brokers
Liberum Capital Limited Clayton Bush Tel: +44 20
3100 2222
Macquarie Capital (Europe) Ken Fleming, Tel: +44 20
Limited (NOMAD) Nick Harland, 3037 2000
Nick Stamp
WH Ireland Adrian Hadden Tel: +44 20
7220 1666
--------------------------- ------------------------------- ---------------
Media Enquiries Jos Simson, Mike Tel: +44 20
Tavistock Bartlett, 7920 3150
Emily Fenton
--------------------------- ------------------------------- ---------------
Warrant Trading Enquiries
Liberum Capital Limited Simon Smith Tel: +44 20
3100 2171
--------------------------- ------------------------------- ---------------
About Sirius Minerals Plc
Sirius Minerals is the fertilizer development company focused on
the development of the York Potash Project in the United Kingdom,
which has the world's largest and highest grade deposit of
polyhalite, a multi-nutrient form of potash containing potassium,
sulphur, magnesium and calcium. Incorporated in 2003, Sirius
Minerals' shares are traded on the London Stock Exchange's AIM
market. Its shares are also traded in the United States on the
OTCQX through a sponsored ADR facility. Further information on the
Company can be found at: www.siriusminerals.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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