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Potash Ridge inks offtake, financing deal for Valleyfield potash project

Potash Ridge Corp. said Oct. 4 that it signed an offtake and funding agreement with Jones-Hamilton Co., a North American producer and marketer of hydrochloric acid.

Under the terms, Jones-Hamilton will fund the hydrochloric acid equipment of Potash Ridge's Valleyfield sulfate of potash project in Quebec, while Valleyfield will sell its hydrochloric acid production to Jones-Hamilton for a minimum 10-year period.

Potash Ridge President and CEO Guy Bentinck said 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."

In July, the company contracted SNC-Lavalin Group Inc. to conduct the first phase of an engineering, procurement and construction program at the Valleyfield potash project.