Fertoz $1.25m debt facility with Chairman James Chisholm
Perth, Dec 23, 2014 AEST (ABN Newswire) - The Board of Fertoz Limited (
ASX:FTZ) is pleased to announce it has executed a Loan Agreement with Lenark Pty Ltd, an entity associated with Fertoz Chairman James Chisholm.
The effective date of the Loan Agreement is 23 December 2014 and provides for a facility limit of $1,250,000 which can be drawn at the election of Fertoz. Funds released pursuant to the Loan Agreement will be used for ongoing development of processing and marketing of phosphate rock products in Canada and the sale of FertAg 0-8-0, a specialty phosphate product, in Australia.
Draw down amounts accrue interest at 6% p.a. The loan matures on 30 June 2016 and can be repaid in cash and/or scrip at the election of the Board.
Managing Director Les Szonyi said: "We have made good progress with our transition from explorer to producer and the Loan Agreement will assist us as we generate cash in 2015. Over the past 12 months we have:
- Collected 2,700 tonnes of rock phosphate for sale from both the Wapiti and the Fernie projects in British Columbia, Canada;
- Appointed Natures Way Farm Ltd, Sunalta Fertilizer Ltd and EnviroPerfect Solutions to market rock phosphate in Canada; and
- Established Fertoz Agriculture Pty Ltd to import from Asia and sell FertAg 0-8-0, a specialty phosphate and soil re-mineralisation product in Australia, that can be used by conventional farmers to replace superphosphate and to re-mineralise depleted soils.
We look forward to extracting more rock phosphate from our two projects in Canada in 2015 and growing sales in both North America and Australia, providing a strong platform for the future growth of the Company."
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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