Great News Out!!! Sales agreement signed for 100% of outputMarketwired
TORONTO, ONTARIO--(Marketwired - Nov. 7, 2017) - Melior Resources Inc. (TSX VENTURE:MLR) ("Melior" or the "Company") today announced that its wholly-owned subsidiary, Goondicum Resources Pty Limited, has signed an off-take agreement (the "Agreement") to supply apatite fertilizer to SOFT Agriculture Pty Limited ("SOFT"), an organic agri-products manufacturer based in Australia.
"We are extremely pleased to have entered into a long-term off-take agreement with SOFT given its commitment to organic farming," said Mark McCauley, President and CEO of Melior Resources. "The agreement is a testament to the quality of our apatite product and our ability to penetrate the fast-growing organic farming market."
Under the terms of the agreement SOFT will purchase 100% of Melior's production volume at a price which is 50% higher than the price Goondicum previously received for this product reflecting the increasing demand for Goondicum apatite's unique attributes. The Agreement will continue for the earlier of the life of the Goondicum ilmenite mine or 10 years.
SOFT is a rapidly growing organic fertilizer manufacturer based in northern New South Wales and supplies a range of organic fertilizer and stock feed products to the Australian agricultural industry. SOFT has been the primary customer for Melior in previous operational periods and possesses proprietary technology which processes the raw apatite from the Goondicum mine into a high value organic fertilizer.
Apatite from the Goondicum ilmenite mine is a high P2O5, refractory phosphate rock which is unique in its mineralogical and physical characteristics. Goondicum apatite has no cadmium or lead content and is chemically very clean, making it ideal for organic fertilizer and stock feed manufacture. Being a refractory rock means Goondicum apatite is a slow release phosphate source and, as a result, its use is not detrimental to waterways and adjacent areas to where it is applied.