Australian Potash (ASX: APC) has signed its first binding term sheet with Tier 1 partner Redox Pty Ltd for the supply of 20,000 tonnes per annum (tpa) of premium K-Brite sulphate of potash from the Lake Wells Sulphate of Potash Project (LSOP) in Western Australia
Managing Director and CEO of Australian Potash, Matt Shackleton, said the agreement with Redox includes geographic rights for distribution through Australia and New Zealand.
He added that his company is also well advanced in discussions with further Tier 1 offtake partners covering Asia (exChina), Europe, the Americas and China.
“We are pleased to announce the first binding term sheet for offtake supply, covering sales and distribution rights to K-BriteTM in Australia and New Zealand,” Mr Shackleton said.
“Our new partnership with long-established Australian company Redox, who from its Sydney base has built broad trade relationships and an extensive global distribution network, delivers APC’s first step in the larger offtake program.
“Ultimately APC will have a large proportion of the planned 150,000 tpa output from the LSOP under offtake agreements, and we look forward to updating shareholders on our progress in the near future.
“The emerging Australian SOP sector is gaining credibility on the international stage, and it is pleasing to see APC’s rigorous approach to both the technical and commercial aspects of its solar salt SOP project being recognised.”
Redox is an Australian based company which since 1965 has grown into one of the world’s leading chemical and raw material distributors to industry.
With offices in all major Australian and New Zealand cities, Redox has reported significant year on year growth for over a decade, with 2019 financial year sales revenues increasing 8% to A$705 million.
K-Brite is a registered trademark brand of Australian Potash Limited (ASX: APC), representing the premium Sulphate of Potash (SOP) to be produced from the company’s flagship Lake Wells Project.
APC holds a 100% interest in the Lake Wells Sulphate of Potash Project (LSOP) located approximately 500kms northeast of Kalgoorlie.