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Encanto Potash Enters into Memorandum of Understanding with India's National Federation of Farmers' Cooperative
Jan. 04, 2017 08:32AM PST
Potash InvestingEncanto Potash (TSXV:EPO) has completed the foundation for an offtake agreement with the National Federation of Farmers’ Procurement, Processing and Retailing Cooperatives of India. As quoted in the press release: NACOF (www.nacof-india.com) is a national farming cooperative under the Indian Ministry of Agriculture, Government of Indiarepresenting farmers in 25 states across India. One of their primary …
Encanto Potash (TSXV:EPO) has completed the foundation for an offtake agreement with the National Federation of Farmers’ Procurement, Processing and Retailing Cooperatives of India.
As quoted in the press release:
NACOF (www.nacof-india.com) is a national farming cooperative under the Indian Ministry of Agriculture, Government of Indiarepresenting farmers in 25 states across India. One of their primary goals is to enter into contracts and collaborate for the purchase, production, manufacture and marketing of raw materials, finished products and by-products. NACOF also enters into joint marketing and exchange agreements with Cooperative Institutions and Public Sector Undertakings such as Metal Mineral Trading Company ofIndia (“MMTC”) (see Company news release dated April 13, 2016) or other Government agencies in India and abroad. Food security obtained via procurement of a secure alternative supply of muriate of potash and eliminating middlemen for Indian farmers is a fundamental objective. As such, NACOF represents fertilizer end users in India, being farmers with a membership comprised of 67 State Level Federations, District Level Federations and large, primary level societies from 25 Indian States.
The MOA with NACOF now positions Encanto for the transition of the previously announced memorandum of understanding between Encanto and MMTC (the “MMTC MOU”) into a Commercial Marketing and Distribution Agreement to provide for the sale of an additional minimum of 2 million tonnes of potash annually, as MMTC was appointed Encanto’s exclusive worldwide potash marketing agent. Under the MMTC MOU, MMTC has the ability to sell potash sourced by Encanto into India or beyond. Encanto is exploring third party sources as short term supply under the MMTC MOU until such time as its flagship Muskowekwan project is developed to supply potash under the NACOF MOA and the MMTC MOU.