Sulvaris Inc. announced that it has signed definitive agreements with Keyera Partnership, one of the largest midstream operators in Canada, for the construction, ownership and operation of a new sulphur fertilizer production facility in central Alberta.

The new facility, which will be built on the site of Keyera's existing Strachan Gas Plant near Rocky Mountain House, Alberta, will convert elemental sulphur into Vitasul, a premium plant nutrient sulphur fertilizer.

The facility will be owned as a 50/50 joint venture between Keyera and Sulvaris, with Keyera as operator. The joint venture will produce Vitasul for Sulvaris at the facility on a fee-for-service basis and Sulvaris will market and distribute the product. The new facility, when completed, will have the capacity to produce up to approximately 217,000 metric tonnes of Vitasul per year, which will be sold into the Canadian, U.S., and Asian markets.

Engineering work is underway and, subject to the receipt of regulatory approvals, the completion of Sulvaris' financing, and final approval for the project by Keyera and Sulvaris, construction of the facility is currently scheduled to commence in 2013. If this schedule is maintained, production could commence in early 2014.