American Pacific Borates Ltd (ASX: ABR) share price has edged higher in early morning trade. This comes after the company announced an update in respect to its Fort Cady Borate Mine.
It’s also worth noting that, the ABR share price is within a whisker of breaking its all-time high record. At the time of writing, the fertiliser producer’s shares are sitting at $2.44, up 3.39%.
What did ABR announce?
ABR shares are on the move today after the company revealed its progressing negotiations with Compass Minerals America Inc.
A subsidiary of NYSE-listed Compass Minerals International, Inc. (NYSE: CMP), Compass Minerals is a leading producer of minerals in North America. The company specialises in making salt, plant nutrients and magnesium chloride for industrial, agricultural, commercial and consumer markets.
According to ABR’s release, the company advised it has signed a letter of intent (LOI) with Compass Minerals to sell sulphate of potash (SOP) from its Fort Cady Borate Mine.
Under the agreement, both parties will work together on creating a framework in which Compass Minerals will look after the sales and marketing for the SOP production. In addition, the companies will work on progressing crop trials and agronomy studies for boron rich fertilisers.
ABR stated that it expects formal agreements to be executed over the coming months.
ABR executive director, Anthony Hall commented:
There is a strong alignment between ABR and Compass Minerals relative to our ambitions to supply SOP to the growing North American agricultural market. Compass Minerals has well established customer markets and supply chain, so we think the collaboration on SOP sales is a sensible one.
The partnership will allow ABR to focus on its rare Borate business, while also leveraging the combined expertise on the potential to develop new boron enriched specialty fertilisers.
ABR share price review
In the month of April, ABR shares have been flying higher to register an all-time high of $2.54 last Thursday. Its year-to-date performance stands at a gain of close to 60% for ABR shareholders.
Today’s announcement thus far hasn’t quite pushed the ABR share price into new record territory.