Centrex (ASX:CXM) inks offtake agreement with NZ-based Ballance Agri-Nutrients

• Centrex (CXM) subsidiary Agriflex signs offtake agreement with NZ-based Ballance Agri-Nutrients for the purchase of phosphate from CXM’s Ardmore project in QLD
• The agreement will last 2.75 years and make up around 20 per cent of production at Ardmore
• Ballance agrees to purchase 30,000 tonnes of phosphate in the first year, before reaching mutual agreements for allocations in the years thereafter
• CXM Managing Director Robert Mencel says it is a “stepping stone” towards building a relationship with Ballance and supplying its product into the “lucrative” New Zealand agriculture market
• Shares in CXM are up 6.45 per cent and trading at 16.5 cents at 11:03 am AEDT

Centrex (CXM) subsidiary Agriflex has struck a phosphate offtake agreement with New Zealand-based Ballance Agri-Nutrients.

The binding agreement is for the purchase of phosphate from CXM’s Ardmore project in northwest Queensland.

CXM said the deal would last 2.75 years and make up around 20 per cent of production at Ardmore.

Centrex Managing Director Robert Mencel said the agreement was “another significant milestone for the company”.

“We also see this as a stepping stone towards a long-term relationship with Ballance and supplying our product into the lucrative New Zealand agriculture market,” he said.

Through this agreement, Ballance has agreed to purchase 30,000 tonnes of phosphate in the first year, before reaching mutual agreements for allocations in the years thereafter.

In May 2022, Ballance signed a deal for a trial shipment of phosphate rock from CXM’s Ardmore project.

Earlier this year, Ballance confirmed its satisfaction with the results and performance of the phosphate rock at Ardmore.

The supply of phosphate rock under the new offtake agreement is expected to start on April 1, 2023.

Shares in CXM were up 6.45 per cent and trading at 16.5 cents at 11:03 am AEDT.