Expression of Interest Received for Marketing and Sale of Blawn Mountain Alumina Product
TORONTO, May 23, 2019 (GLOBE NEWSWIRE) -- SOPerior Fertilizer Corp. (the “Company”) (TSX:SOP) is pleased to announce that it has received an expression of interest from a leading North American player in the alumina chemical sector.
This established North American leader signified their interest in the calcined alumina production volumes we are projecting. The projected quality level and final production cost presented are very appealing and should be instrumental for a successful marketing venture. This North American leader stated, “We would value the opportunity to operate as SOPerior’s exclusive marketing arm in North America for the calcined alumina product provided the quality level and production cost were achievable on a commercial basis.” SOPerior Fertilizer believes this particular company is uniquely qualified to maximize the sales and profit opportunity for SOP’s calcined alumina product based on the projected costs and product quality. SOPerior Fertilizer anticipates that the sale of alumina will be between 40% to 50% of total revenue.
Discussions on the appropriate compensation framework are in progress with the alumina marketer for the calcined alumina sales. Some of the economic concepts currently under initial consideration are a $/MT fixed rate of compensation or an ex-works bulk railcar set price.
SOPerior Fertilizer’s Chief Executive Officer Andrew Squires stated, “SOP’s alunite resource has very low levels of impurities which will result in production of metallurgical and potentially higher purity calcined alumina material. With its initial alumina production, SOP intends to target the domestic and more lucrative chemical alumina market where, depending on purity, the alumina sells at a premium in the USD $400-$600 MT price range.”
The Company previously announced on March 1st, 2019, “SOPerior Fertilizer in Discussions to Develop Blawn Mountain’s SOP and Alumina Resources in Utah.”
“SOPerior Fertilizer announces that it is advancing offtake and funding discussions with several international and US-based commodity trading and construction groups. The sulphate of potash (“SOP”), possible alumina offtake agreements and commodity-linked debt funding relate to SOPerior Fertilizer’s planned production of soluble SOP fertilizer, alumina, and sulphuric acid from its Blawn Mountain project located in the state of Utah. The extraction of alumina and SOP from alunite is a proven process used at commercial scale in Azerbaijan since the late 1960’s. The soluble SOP to be produced has a large and growing unmet domestic and international market as more growers utilize fertigation technology to reduce water consumption.”
On Behalf of the Board of Directors
SOPERIOR FERTILIZER CORP.
“Andrew Squires”
CEO and Director
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P: (416) 362-8640
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at ).
