- Centrex Metals’ (CXM) share price almost tripled after its subsidiary signed an agreement with leading fertiliser trader Samsung C&T Corporation
- Agriflex will use Samsung C&T as its exclusive marketing agent for phosphate sales into Korea, Japan, Indonesia, India and Mexico
- The agreement will run for three years and will see around 160,000 tonnes of product from its Ardmore Phosphate Project in Queensland handed over for sale
- Samsung C&T will pay the market netback price for the phosphate, while the entire deal hinges on CXM pushing ahead with Adrmore
- Shares in Centrex Metals have jumped 202 per cent to trade at 13 cents each at at 12:16 pm AEDT
Centrex Metals’ (CXM) share price has almost tripled in morning trade after its subsidiary signed an agreement with leading fertiliser trader Samsung C&T Corporation.
The company’s 100 per cent owned business Agriflex will use Samsung C&T as its exclusive marketing agent for phosphate sales into Korea, Japan, Indonesia, India and Mexico.
The product will comes from the Ardmore Phosphate Project in Northern Queensland, which will be able to produce 800,000 tonnes per annum.
The deal between Samsung C&T and Agriflex will run for three years and see around 160,000 tonnes of product, or 20 per cent of output, handed over for sales.
Samsung C&T can also assist the business with sales of any additional quantity of product not used in other offtake agreements.
Agriflex will charge Samsung C&T the market netback price for the phosphate, while the entire deal hinges on the CXM board making a final decision on advancing Ardmore.
Centrex’s Managing Director Robert Mencel said the project was shaping up to be a real game-changer.
“We are pleased to do business with Samsung, one of the Worlds’ largest fertiliser traders,” Mr Mencel said.
“The signing of the term sheet reflects the strong international interest in the project and its future production.”
CXM shares have skyrocketed since the announcement went live this morning, trading up 202 per cent at 13 cents each at 12:16 pm AEDT.