Potash Ridge Corporation (“Potash Ridge” or “the Corporation”) (TSX: PRK), a near term producer of premium fertilizer in North America, is pleased to announce that it has signed an offtake with Jones-Hamilton Co. (“Jones-Hamilton”), a leading chemicals company and one of North America’s premier producers and marketers of hydrochloric acid.
As part of this arrangement, Valleyfield will sell its production of hydrochloric acid from the Valleyfield facility to Jones-Hamilton for a minimum ten-year period.
“Jones-Hamilton’s reputation, experience and established distribution networks make them an ideal partner for the sale of our by-product hydrochloric acid.” said Guy Bentinck, Potash Ridge’s President and Chief Executive Officer. “The commitment from Jones Hamilton represents a major milestone in progressing this project into execution in early 2017, with production targeted to commence by year-end. We’re in the advanced stage of securing project financing, and look forward to updating shareholders in due course.”
“This agreement represents a great opportunity to enhance our presence in Eastern Canada and Northeast United States,” said Bernie Murphy, President of Jones-Hamilton. “Valleyfield’s demonstrated commitment to quality and reliability was an important factor in our decision to partner with Potash Ridge. We look forward to a long and mutually profitable relationship with Valleyfield and Potash Ridge.”
Sulphate of potash (“SOP”) is the world’s most popular low-chloride fertilizer. It is beneficial to soils and plants, and is considered one of the world´s most important specialty potash fertilizers. Combining potassium and sulphur, SOP provides a high concentration of nutrients for plants. Its low chloride content makes it the ideal potash-based fertilizer for high value crops, and for soils at risk to salinity.
In July 2016, the Corporation engaged SNC-Lavalin (“SNC”) (TSX: SNC) on the first phase of an Engineering, Procurement and Construction (“EPC”) program for Valleyfield. This contract comprises two distinct phases. The first phase is expected to be a four-month process during which SNC will finalize engineering and process drawings, prepare equipment lists, schedule long lead items, and award early vendor works contracts such as the Mannheim furnace package, for a 40,000 tonnes per year SOP facility at a capital cost of $50 million.