18th Aug 2014 08:52
LONDON (Alliance News) - Sirius Minerals PLC shares jumped higher in trade on Monday after the company said it has signed an additional binding take or pay offtake agreement for polyhalite from the York Potash Project in North Yorkshire.
Shares in Sirius were trading up 7% to 11.5 pence on Monday, putting it among the biggest risers on the London market.
Sirius said the agreement has been reached with a Central America-based fertilizer distributor, though it did not name the company.
The agreement is for an initial five years from the first commercial production at the site, with an option to extend the deal for another five years.
The price to be paid is based on a formula linked to the market price of nutrients in polyhalite and is in line with previous market guidance, Sirius said.
"This agreement continues to extend the global sales reach of polyhalite and means we are now partnered with an organisation that controls a substantial proportion of the Central American crop input market," said Sirius Chief Executive and Managing Director Chris Fraser.
"Our customer commitments now exceed five million tonnes per annum, with additional options for 750,000 tonnes per annum. We are having a number of ongoing discussions with customers seeking to tie down supply agreements for this important multi-nutrient mineral," Fraser added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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