Nitron Group has established networks in 15 countries and has agreed to take 115,000 tonnes per annum of SOP from the Mackay project on the Western Australia/Northern Territory border for supply into key markets across Africa, Latin America, the Caribbean, and Mexico.

 

The Nitron deal has a seven-year term and pricing will be set based on geographical market price data.

 

It will take reduced volumes during the 24-month ramp-up period, with full volumes expected from year three.

 

Agrimin CEO Mark Savich said signing on of a "highly respected offtake partner" helped reiterate the "considerable interest in Agrimin's low carbon, organic SOP product.

 

It is Agrimin's second offtake agreement, and comes after Sinochem Fertilizer signed a 10-year deal for the supply of 150,000tpa of SOP for sale and distribution in China in May 2021.

 

It adds up to 60% of the planned production of 450,000tpa from Mackay, which is 940km by road south of the Wyndham Port.

 

That level of binding offtake meets the tenure requirements for project financing.

 

Offtake negotiations with other international fertiliser companies continue.

 

A definitive feasibility study was completed in mid-2020, with the company aiming to be one of the world's lowest cost and lowest carbon producers.

 

Agrimin is working towards a final investment decision this year, and commercial production from mid-2026.

 

The company recently completed site-based front-end engineering design to support Royal IHC's detailed design for automated wet harvesting equipment for Mackay, which are expected to deliver operational and cost benefits during production.

 

The company called a trading halt after today's news, pending announcement of a capital raising to fund its planned work programs.

 

It last raised A$6.5 million at 45c in December 2020.

 

The company ended the September quarter with $3 million cash.

 

Agrimin shares have traded between 40c and 71c over the past year, with the stock last traded at 42.5c, valuing it at $90 million.