25th Sep 2014 07:28
LONDON (Alliance News) - Sirius Minerals PLC shares were given a boost in early trade on Thursday after the company said it has signed a memorandum of understanding with the Tanzania Fertilizer Co Ltd on a joint venture to blend and distribute polyhalite-based fertiliser products in Tanzania and the surrounding region.
The terms of the deal includes the negotiation of an offtake agreement to supply up to 500,000 tonnes of polyhalite per year to be used by the joint venture.
The agreement follows talks held by Sirius and Tanzania Fertilizer after the signing of a separate MoU with the Tanzanian Ministry of Agriculture in July to implement a series of crop trials using polyhalite as a fertiliser base for future use in Tanzania.
"Our partners believe that polyhalite could play a significant role in the future of fertiliser use and we are delighted to be working towards a platform for polyhalite into the important and growth markets of Tanzania and other countries in East and Central Africa," said Chris Fraser, managing director and chief executive officer of Sirius.
Sirius shares were up 5.3% to 13.425 pence on Thursday morning, putting them among the best performers in the AIM All-Share ndex.
By Sam Unsted; [email protected]; @SamUAtAlliance
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