Great Quest Signs Offtake Agreement with Malian Company

Great Quest Fertilizer Ltd. (TSXV:GQ) announced a binding commercial offtake agreement with Mali’s Société Africaine de Développement Agricole SA (SADA Group) for the bulk of the production from its planned Mali-based phosphate manufacturing facility.

As quoted in the press release:

Under the terms of the Agreement, SADA Group has agreed to purchase 95% of the projected annual production of 35,000 tonnes of direct application granulated phosphate, which will comprise of 25,000 tonnes of high grade 35% P2O5 and 10,000 tonnes of medium grade 27% P2O5, targeting the Malian market. The terms of the Agreement fix the sale prices of the direct application phosphate based on the price of imported diammonium phosphate (DAP). Future prices are to be indexed to international rock phosphate concentrate prices and adjusted annually.

Jed Richardson, president and CEO of Great Quest, commented:

This is a dramatic step towards production in Mali and is the first of its kind in regard to direct application products. Great Quest will work closely with the SADA Group to finance the production facility and to manage the commercial and socio-political risks in Mali.

Click here to read the full Great Quest Fertilizer Ltd. (TSXV:GQ) press release.