GrowMax Resources Corp. (OTC: APEOF) (TSX-V: GRO) subsidiary Americas Potash Peru SA has entered into a phosphate rock offtake agreement with Kisan International Trading FZE, a wholly owned subsidiary of the Indian Farmers Fertilizer Cooperative Ltd.
Subject to the terms of the agreement, Kisan has agreed to purchase not less than 50 per cent of the phosphate rock produced from APPSA's Bayovar concessions, up to a total of 500,000 metric tonnes per annum. The agreement has an initial term of 15 years commencing once APPSA has established commercial production of phosphate rock from the Bayovar concessions for not less than 30 consecutive days. The price of the phosphate rock shall be based upon prevailing phosphate rock prices in Peru or South America at the time of sale. The agreement also contains other customary offtake agreement terms and conditions.
Stephen Keith, GrowMax Resources president and chief executive officer, stated: "We are extremely pleased to have signed an offtake agreement with an exceptional and highly reputed partner such as Kisan/IFFCO. This agreement provides GrowMax with the benefit of an ongoing future revenue stream and lower market risk once production of phosphate rock commences and also provides Kisan with a secure future supply of phosphate rock. This agreement marks an important step in the company's strategy to optimize its existing projects and assets and is consistent with our recently announced objective to become a cash-generating fertilizer business."
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