Sulphate of Potash Off-Take Memorandum of Understanding with Major Japanese Trading House
Darwin, Dec 9, 2015 AEST (ABN Newswire) - Rum Jungle Resources Ltd (
ASX:RUM) and a major Japanese Trading House have signed a Memorandum of Understanding regarding potential future off-take of sulphate of potash from RUM's portfolio of sulphate of potash projects.
The counterparty to this MOU is a leading Japanese Trading House with a significant Australian and global presence in a number of commodities and therefore has an extensive commodity trading and distribution network, particularly in Asia.
The purpose of the MOU is to formalise ongoing information flow and engagement regarding the progression of RUM's Potassium Brine projects. Dependent on progression of the projects toward development and prevailing market conditions, the major Japanese Trading House may, at some point in the future, consider entering into binding agreements for a product off-take in respect to sulphate of potash products from any of the Potassium Brine projects.
The MoU is non-binding and intended to govern the relationship and future discussions between the parties with respect to potential future transactions which remain at the discretion of each party to complete.
RUM's Managing Director, Chris Tziolis stated "that the formalisation of ongoing information flow and engagement with this major Japanese Trading House regarding the sulphate of potash projects is a positive step forward in the evolution of a sulphate of potash business in Australia. This supports the potential of the Central Australian Ground Water Discharge Zone and its proximity to existing transport infrastructure being the Central Australian railway that provides access to both Australian and Asian markets. Whilst this MOU is non-binding and does not represent a commitment at this point in time, from RUM's perspective, this Trading House would be a preferred off-take partner for distribution in certain Asian markets. It is encouraging to know that should RUM be able to develop its sulphate of potash projects there is a potential route to market and interest in this product as a regional agricultural input".
About Verdant Minerals Ltd
Verdant Minerals Ltd's (ASX:VRM) strategic intent is to create shareholder value through the discovery, development and operation of fertiliser and industrial mineral projects, located in close proximity to existing transport infrastructure, with a primary focus on the Northern Territory of Australia.
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