SOPERIOR FERTILIZER PROVIDES A COMPANY UPDATE

0


Toronto, ON, Canada, December 6, 2021 (GLOBE NEWSWIRE) – SOPerior Fertilizer company. (the company “) (NEX: LOVE.H). Following its press release dated July 6, 2021, the Company announces that it has entered into an exclusivity agreement with a counterparty regarding a joint venture agreement (“JV”) for the development of its Blawn Mountain alunite asset.

The counterparty has agreed to provide an exclusive payment of $ 200,000 to secure the JV transaction until the closing date which is expected to occur by mid-January 2022 or earlier. If necessary, the exclusivity period can be extended by mutual agreement and the receipt of additional exclusivity payments.

The terms and conditions of the joint venture agreement are unchanged from those described in the press release dated August 24, 2020.

JV Project

The commercial production facility for the first phase of the proposed joint venture and future expansion phases are to be constructed on the site of an existing copper processing operation. This location provides many mutual economic and operational benefits and synergies with existing copper operations, such as reduced labor costs and general and administrative costs from a shared workforce and reduced government and community engagement costs. Using existing infrastructure connections and on-site processing equipment with incorporation of process changes is expected to result in significant reductions in capital and operating costs.

Process engineering will begin immediately after the execution of the joint venture and it is expected that the facility can be built and brought online within 18 months of the completion of the FEED project. Initial project capacity estimates of 70,000+ tonnes per year (“tpa”) of SOP, 140,000+ tpa of alumina and 150,000+ tpa of sulfuric acid are being considered, but actual capacity will be determined. once the process engineering work is completed. With three valuable raw materials produced from the processing of a single ore stream, the project is expected to produce the lowest production costs in its class.

soufflé Mountain Alunite Resource

The ore to be extracted using simple surface mining operations is alunite. The processing of alunite yields three valuable products: alumina, “SOP” (sulphate of potash fertilizer – a variety of high value potash) and sulfuric acid. For each tonne of SOP produced, approximately 2 tonnes of alumina and 2.15 tonnes of sulfuric acid are co-produced. The project is authorized to produce up to 645,000 tpa (tonnes per year) of SOP, 1.29 MM tpa of alumina and 1.4 MM tpa of sulfuric acid.

The Blawn Mountain alunite deposit represents the largest known potential source of non-bauxite alumina in the United States (1). It was discovered in the 1970s during a search for non-bauxite sources for aluminum production, as the United States has negligible bauxite reserves and depends on imported bauxite and alumina for production. primary aluminum production. The company’s Blawn Mountain mining lease includes more than 15,400 acres in the state of Utah.

The Company’s 2017 pre-feasibility study reports NI 43-101 proven and probable mineral resources of 426 million tonnes and 153.3 million tonnes of proven and probable mineral reserves from two explored areas of the lease. This excludes potential resource additions from two unexplored areas in the lease which show indications of alunite surface. This represents more than 100 years of potential life of the large-scale commercial project reserves.

Alumina, SOP and H2SO4 Market Outlook

The futures market outlook for the 3 commodities produced is solid, with alumina, sulfuric acid and sulphate of potash (SOP) approaching or exceeding decade highs. According to the “United States Producer Price Index” released by the United States Bureau of Labor Statistics, the price of alumina increased to over $ 400 / tonne in the fourth quarter of 2021 and the Sulfuric acid is trading at over 200 USD / tonne. The global potash market came to life in 2021 as growing demand, low international crop yields, soaring crop prices and margins combined to drive regional potash prices up 200% to 300 % to exceed 700 USD / tonne (CFR Brazil Spot) and 520 USD. / tonne (CFR SE Asia Spot). Historically, the ten (10) year average premium from SOP to MOP (regular potash) is US $ 221 / tonne with current FOB Vancouver MOP prices above US $ 550 / tonne.

The company recognizes the potential of Blawn Mountain with its size, multiple valuable production yields and economy. The proposed joint venture, which will bring together project and operational management experience backed by substantial financial commitments, will represent an important step towards unleashing Blawn Mountain’s potential and moving towards full-scale production.

(1) World Nonbauxite Aluminum Resources – Alunite, Robert B Hall, Geological Survey Professional Paper 1076A.

On behalf of the board of directors

SOPERIOR FERTILIZER CORP.

Andrew Squires

CEO and director

Contact details
Email inquiries: info@SOPeriorfertilizer.com
www.SOPeriorfertilizer.com

FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements, which relate to future events or future performance and reflect the current expectations and assumptions of management. These forward-looking statements reflect the current beliefs of management and are based on assumptions made by and on information currently available to the Company. Investors are cautioned that these looking to the future statements are neither promises nor guarantees, and are subject to risks and uncertainties which may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required by applicable securities laws, the Company assumes no obligation to update or revise them to reflect new events or circumstances. All forward-looking statements contained in this press release are qualified by these cautionary statements and those contained in our documents filed with SEDAR in Canada (available at www.sedar.com).


Share.

Comments are closed.