A$1 Million Working Capital Facility Established for Product Sales
Perth, Feb 27, 2015 AEST (ABN Newswire) - Fertoz Limited ("Fertoz" or the "Company") (
ASX:FTZ) is pleased to announce that the FertAg JV has established a working capital facility with Moneytech Finance Pty Ltd ("Moneytech") for up to A$1 million (the "Facility"). The Facility provides FertAg with up to 90 days to pay Moneytech for expected proceeds from goods sold.
- FertAg JV establishes A$1 million working capital facility with Moneytech Finance
- Facility funds FertAg and facilitates generation of near-term cash flows
- Fertoz Chairman James Chisholm exercises 25c options
A global insurance group, currently rated A+ by Standard & Poors, has also agreed to insure the Facility. The high levels of support shown by these two parties represent a strong endorsement of the FertAg business.
Managing Director Dr Les Szonyi said: "The working capital facility with Moneytech allows FertAg to become selffunded without the need for further cash from Fertoz. Minimising funding risk is a key strategy and the facility is a clear step towards achievement of this goal. The facility will assist Fertoz in generating near-term cash flows through FertAg and allows us to separately focus on ongoing rock phosphate processing, marketing and sales from Wapiti and Fernie."
Earlier this month, FertAg signed a National Supplier Agreement with a major Australian Agribusiness to sell and distribute its specialty phosphate products across Australia. FertAg representatives are organising meetings at regional centres across Australia in the coming months to promote sales of FertAg 0-8-0 and FertAg Granular 0-7-0.
Exercise of Chairman's options
Lenark Pty Ltd, an entity associated with Fertoz Chairman, Mr James Chisholm, has exercised 615,385 Fertoz options at an exercise price of A$0.25 in a further show of strong support for the Company. This transaction provides Fertoz with A$154k of funding. Mr Chisholm and his associated entities now own 5.9m Fertoz shares representing 12.6% of Fertoz's issued capital. Lenark Pty Ltd also recently provided Fertoz with a A$1.25m debt facility (see ASX release dated 23 December 2014).
Collectively Fertoz's Board and senior management own 16.5% of Fertoz.
About the FertAg JV
Fertoz controls the FertAg JV of which it owns 50%. The FertAg JV was established to distribute fused calcium magnesium silicate phosphate products to conventional and organic farmers in Australia and New Zealand. These products counter acidic soils (found across much of Australia's key farming regions), provide valuable macronutrient conditioning to soils and reduce unnecessary contamination of creek, river and reef systems through their slow release properties. (For full FertAg JV details and arrangements see ASX release dated 6 November 2014.)
FertAg and Fertoz have agreed a shareholder discount scheme allowing Fertoz shareholders to receive a discount on purchases of FertAg products. (For more information, see ASX release dated 12 February 2015.)
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/79443-ASX-FTZ-845324.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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