- Agrimin (AMN) signs another offtake agreement for the supply of sulphate of potash (SOP) from its Mackay potash project in WA
- The offtake is with US-based wholesaler of NPK bulk blending grade fertilisers, Gavilon Fertilizer, who’ll offtake 50,000 tonnes of SOP per annum over seven years
- Agrimin CEO Mark Savich says the US is an important SOP market and is pleased to secure an offtake partner like Gavilon
- This deal means Agrimin has now secured offtakes for 315,000 tonnes per annum of SOP, representing 70 per cent of the Mackay project’s planned production capacity
- AMN shares are up 12.5 per cent to close the day at 45 cents per share
Agrimin (AMN) has signed an offtake agreement with Gavilon Fertilizer for the supply of sulphate of potash (SOP) produced from its Mackay potash project in WA.
Under the seven-year deal, Gavilon will offtake 50,000 tonnes of SOP per annum from Agrimin’s Mackay project for sale and distribution across the US’ agricultural industry.
Gavilon is a US-based wholesaler of nitrogen, phosphorus and potassium bulk blending grade fertilisers and has one of the largest distribution systems throughout major agricultural growing areas across the US.
“Gavilon is another tier-one offtaker for Agrimin and we look forward to partnering with them to successfully market and sell Agrimin’s low carbon, organic SOP throughout the US,” CEO Mark Savich said.
“The US represents an important SOP market and we are delighted to secure an offtake partner which has one of the largest and most efficient wholesale fertiliser distribution networks in the country.”
The offtake with Gavilon follows a 10-year binding offtake deal signed with Sinochem Fertilizer Macao in May last year and a seven-year binding offtake with Nitron Group in January this year.
Positively, Agrimin has now secured offtake agreements for a total of 315,000 tonnes per annum (tpa) of SOP which represents 70 per cent of the Mackay potash project’s planned production capacity of 450,000tpa.
The offtake is subject to Agrimin making a final investment decision to develop the Mackay potash project and the commencement of commercial production by June 30, 2026.
AMN shares were up 12.6 per cent to close the day at 45 cents per share.