Appoints Marketing Agent to Sell Rock Phosphate
Perth, Oct 14, 2014 AEST (ABN Newswire) - Phosphate developer Fertoz Limited ("Fertoz" or the "Company") (
ASX:FTZ) is pleased to announce that it has signed a Marketing and Distribution Agreement with Natures Way Farm Ltd ("Natures Way") to sell rock phosphate from the Company's Wapiti Project in British Columbia, Canada.
Natures Way is an organic fertilizer company headed by agronomist Peter Lundgard. It sells compost, calcium carbonate and rock phosphate, and mainly services the Peace River and Grand Prairie agricultural regions of north-western Alberta. Mr Lundgard said, "We are excited to have agreed a deal with Fertoz to market their Wapiti rock phosphate to our network. It is a naturally occurring soil additive with high available phosphate and many trace elements required by plants for healthy growth. We are looking forward to working with our network to distribute the product to local farmers."
The agreement follows Fertoz's first sale of phosphate rock - 28 tonnes of 20% P2O5 ground phosphate rock sold for C$200 per tonne - to a farm near Stettler, Alberta for trial, and the appointment of a processor for Wapiti rock in the Grand Prairie region announced last week.
Fertoz Managing Director Les Szonyi said, "We are delighted to execute a marketing and distribution agreement with Natures Way Farm."
"We expect to appoint a number of marketing agents located in both western and eastern Canada. The role of the marketing and distribution agent is to generate demand for Wapiti rock phosphate and to develop high value products."
"Our recent first sale of bulk phosphate has demonstrated to the distributor network our ability to supply appropriately sized direct application phosphate. We aim to become a reliable long-term supplier of high quality phosphate to the largest agricultural market in the world : North America."
The market opportunity for Fertoz's rock phosphate products has been caused by the ineffectiveness of conventional phosphate fertilizers when used on the acidic soils of Western Canada. Alberta has 1 million acres of farming land with strongly acidic soils and 4.5 million acres of farming land with moderately acid soils (Ref: Liming Acid Soils, Alberta Govt Department of Agriculture and Rural Development).
The Company's Wapiti project is ideally located close to the major farming regions of eastern British Columbia and Western Alberta. Farms in these areas are a mixture of broad-acre and intensive agricultural operations, with farmers fertilizing their ground through either broad-acre spreading or directly into seed rows. The area has numerous third-party distribution points - often a series of silos with various fertilizer components. Farmers travel up to 200km to collect their bulk fertilizer from these silos. Fertoz is aiming to have Wapiti rock phosphate as a feedstock for these third-party distributors so that farmers across British Columbia and Alberta can access Wapiti rock phosphate directly or via third-party agents and distributors who use Wapiti rock phosphate in their own fertilizer mixes. Natures Way Farms is the first agent to be appointed to on-sell Wapiti rock phosphate as well as investigate mixing Wapiti rock phosphate with other products that provide additional soil nutritional balance.
About Wapiti
The Wapiti Project (which includes the Wapiti East and Wapiti West tenements) totals an area of 18,070ha and is located near Tumbler Ridge, in British Columbia, Canada. The project is easily accessible by sealed roads and forest service roads and has rail access within 80km. The Company is focused on the Wapiti East tenements and previous work indicates a consistent and continuous at-surface phosphate-bearing horizon which has a potential strike length of up to 39km. Results of phosphate testing has indicated up to 10% availability which makes the product at Wapiti East particularly attractive to the North American organic farming sector, the largest organic market in the world.
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-FTZ-822759.pdf
About Fertoz Ltd
Fertoz (ASX:FTZ) is an Australian-based phosphate exploration and development company with a range of projects in British Columbia, Canada as well as Queensland and the Northern Territory. The Company is focused on becoming a fertiliser producer as quickly as possible, initially focusing on the Canadian/USA markets.
Fertoz plans to develop its exploration assets in Canada in order to identify any potential Direct Shipping Ore (DSO) projects. It intends to seek joint venture partners to assist in funding the exploration projects in Australia.
Phosphate is a commodity necessary for feeding the world, and Fertoz is ready to capitalise on this growing demand.
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