Sirius Minerals signs marketing deal with Keytrade, shares rise

Mon Feb 18, 2013 6:30am EST

Feb 18 (Reuters) - Potash development company Sirius Minerals Plc said it signed a marketing agreement with fertilizer trader Keytrade AG, sending its shares up as much as 13 percent.

Switzerland-based Keytrade will market up to 1.75 million tonnes per annum of polyhalite produced at Sirius' flagship York potash project.

"We see the deal positively impacting the project financing, with a well-respected global fertiliser marketing group now aiding the product story," Liberum Capital analyst Ash Lazenby said.

Production at the York project is scheduled to begin late 2016, with a first phase output target of 5 million tonnes per annum, Sirius said.

Sirius' shares were up 7 percent at 24.4 pence at 1122 GMT on the London Stock Exchange on Monday.