NeuRizer (ASX:NRZ) has signed a $1.5 billion binding offtake agreement with DaelimCo (DL Trading), a subsidiary of Daelim, for the supply of urea fertiliser.
DL Trading will purchase 500,000 tonnes of granular urea per annum from NeuRizer at an index linked price. NeuRizer said that this brings their NeuRizer Urea Project another step closer to production by underpinning future revenue.
The two companies entered into head of agreements in November last year, and the finalisation of this agreement further extends their relationship.
This initial deal is for five years, with the option to extend via mutual agreement.
Meanwhile, this offtake agreement comes shortly after the agreement for a private share placement to Daelim’s international construction partner DL E&C Co, where it took a 9.1 per cent stake in NeuRizer.
Shares traded at 18 cents last Friday.