Potash Ridge (PRK.T) hit a significant milestone in the development of its Valleyfield project located in Valleyfield, Quebec, Canada, when the company announced today that it had inked a five-year agreement with a major North American supplier.

According to the news release, the deal takes care of 100% of the company’s sulphuric acid requirements at Valleyfield.

Valleyfield is a planned 40,000 tonne per year potassium sulphate (“SOP”) fertilizer production facility intended to utilize the proven Mannheim process, the most common method of producing SOP.

This method is the reaction of potassium chloride with sulphuric acid at high temperatures and accounts for 50% to 60% of global supply.

The agreement will go into effect upon commencement of operations at Valleyfield, which is expected to begin building early this year with commissioning expected nine to twelve months after construction begins.

Fertilizer produced at the facility is meant to service chloride-intolerant crops in eastern Canada as well as throughout the U.S. eastern seaboard.

Company President and CEO, Guy Bentinck, commented, “This supply agreement secures the supply and price of our second largest raw material input cost for the long-term.”

He then concluded, “The next steps to constructing Valleyfield will be permitting, finalizing the $50 million financing requirement, and securing SOP off-take agreements, all of which are expected in early 2017.”

 

FULL DISCLOSURE: Potash Ridge is an EQUITY.GURU client.

Written By:

Gaalen Engen

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Agriculture
Mining
Potash
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Potash Ridge
PRK.T
Valleyfield
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