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Australian Potash inks off-take deal over Lake Wells project

Australian Potash Ltd. said June 9 that it entered a nonbinding memorandum of understanding with a Chinese fertilizer producer for the sale of sulfate of potash production from its feasibility-stage Lake Wells property in Western Australia.

Under the deal, a CNAMPGC Holding Ltd. Corp. subsidiary will buy up to 30% of Lake Wells' estimated stage-two production, expected to comprise up to 100,000 tonnes per annum of sulfate of potash.

Australian Potash plans to maintain a dialogue with the CNAMPGC unit, facilitate product trials and optimize product specifications with a view to secure a binding commercial agreement. The company is also working on upgrading and increasing resources at Lake Wells.

"The MOU lays a strong foundation as [Australian Potash] seeks to develop strong relationships with key players in the world's largest fertilizer market," the company said.