Danakali Ltd (ASX:DNK) has now outlined the parties from the non-binding offtake memoranda of understandings (MOU's) for sulphate of potash magnesia (SOP-M) from the Colluli Project in Eritrea.
The company holds a 50% equity interest in the tier 1 project.
Danakali said that the counterparties are Tabarak Fertiliser, Delta Company for Fertilisers and Chemicals, and Helm.
The MOU’s represent a willingness to progress to commercial agreements, and as such, pricing and other commercial terms are yet to be reached.
SOP-M represents the second premium, chloride free, multi-nutrient potash type from the Colluli resource, which is one of the closest potash deposits to a coastline globally, and is the shallowest known evaporite deposit in the world.
There is little to none of this supply coming on stream in the medium term, providing the opportunity for Danakali.
Off-take details
Tabarak Fertilizer is an Independent Trust Company (S.A.E.) specializing in fertilizers, phosphate, sulphur and raw materials, based in Alexandria, Egypt.
Delta Company for Fertilisers and Chemicals is a joint stock company and producer of fertilizer, based in Cairo, Egypt.
Helm AG, is a family owned business that specialises amongst others in the marketing and distribution of fertilizers, based in Hamburg Germany.
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