12th Jan 2015 09:14
LONDON (Alliance News) - Sirius Minerals PLC on Monday said it has signed its first take-or-pay offtake agreement for the animal-feed mineral supplement market.
The seven-year deal, for which Sirius neither provided financial information nor named the customer, has an option to be extended for a further three years.
Sirius said the deal is on a fixed-price basis which is competitive with established products in the animal-feed market.
The volume commitment is structured on a schedule to coincide with the planned start of production from the York Potash Project, rising to 50,000 tonnes per year by the third year of the contract, with an option to extend this by a further 25,000 tonnes per year.
"We are continuing to make great progress in allocating our expected production from the York Potash Project, and it is particularly exciting to sign our maiden animal-feed offtake contract to confirm new market opportunities for POLY4," Sirius said.
Sirius shares were up 4.4% to 10.00 pence in early trade on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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