Quarterly Activities Report - Mar 2016
Brisbane, April 29, 2016 AEST (ABN Newswire) - Phosphate exploration and development company, Fertoz (
ASX:FTZ) is pleased to provide an update of activities during the quarter ending March 2016. Commenting on the achievements, Stephen Keith, Managing Director of Fertoz stated:
"This quarter, ending March 2016, has been a good one for Fertoz. Building from a solid base of strengthening our balance sheet, through to significantly improving our sales capabilities and our Board, to moving our projects forward through actual sales contracts, processing of material and revising our operating plans to lower costs and increase returns for investors, this quarter has made Fertoz a much stronger company. Following completion of our financing at the end of 2015, Fertoz has set out to prove our model of developing small, high margin projects in solid jurisdictions. We believe we have done this and look forward to making progress in the quarters to come. We are on track to meet or exceed our stated goals for the year and hope to exit 2016 with improved cash flow, sustainable operations and building long-term investor value."
Highlights:
- Fertoz rock phosphate has been certified for organic use in Canada and USA
- First sales agreement has been signed to supply 2,000 tonnes of rock phosphate
- First crushing and pulverizing has been completed, producing an additional ~990 tonnes of rock phosphate ready for sale this planting season
- Fernie Phosphate Project was expanded by adding a highly prospective tenement at Mt Lyne, in the Elko region of BC with similar potential to the Company's existing properties
- Agronomy, sales and marketing capabilities secured through a partnership with an experienced sales and marketing group
- Appointment of Mr Patrick Avery as a non-executive director
- Balance sheet strengthened with the conversion of $504,000 of director fees, loans and other expenditure which was converted following the approvals at the Extraordinary General Meeting
SUMMARY
Corporate
- The Company improved its balance sheet by reducing its debt and creditors by converting $504,000 to shares which included $260,000 of debt owed to Lenark Pty Ltd (a related party of Chairman Mr Chisholm) and $211,000 of expenditure owed to other current and former Directors.
- Appointment of Mr Patrick Avery as a non-executive director. Mr Avery has 30 years of experience working in the industries of fertilizer, mining, specialty chemicals, petroleum, and construction/project management.
- The company continues to analyse opportunities to add significant new assets that maintain Fertoz's stated goals of low capital intensity with potential for relatively near term cash flow.
Canada
- Fertoz entered into a sales agreement to sell 2,000 tonnes of rock phosphate to a fertilizer manufacturer and distributor. It is expected that supply of the product will occur early in third quarter this year with the view that additional sales may occur after this point.
- Establishment of marketing channels and agricultural networks via a partnership with an experienced sales and marketing group. The agreement reinforces Fertoz's 2016 target to commercialize 10,000 tonnes of its direct application rock phosphate.
- The Company has secured 2,453 ha of land prospective for direct application phosphate at Mt Lyne, in the Elko region of BC, Canada, which will form part of the Company's Fernie Phosphate Project. The property is highly prospective with potential for size and phosphate grades that are similar to the Company's existing Crows Nest/Marten/Barnes Lake properties.
- The Company processed approximately 990 tonnes of rock phosphate producing a 90% powdered product, which is now available for sale and for additional field trials in BC and Alberta
- The Company's rock phosphate gained certification for use in the production and/or processing of organic agriculture products in compliance with the requirements of the Canadian Organic Standards (COS) and the USDA National Organic Program.
- Discussions have continued with both the provincial regulatory agencies and First Nations in order to complete permitting for the Small Mines Permit for the Wapiti Project.
USA
- No work was completed on the Company's Idaho project this quarter and with no joint venture partners likely to assist with the development of this asset, the Company is reviewing its options.
Australia
- Demand has continued to grow for FertAg 0-8-0 in Australia. Shipments of FertAg 0-8-0 have been ordered for Brisbane and Townsville.
- A Dorrigo dairy farmer reported good results when trialling FertAg 0-8-0. He planted forage sorghum on 4.4 ha, using FertAg 0-8-0 as the source of phosphorus.
- The farmer has followed up with an order for sufficient FertAg 0-8-0 to fertilize his whole farm of 100 ha
- The FertAg business has continued to be self-funding.
Planned Activities for June Quarter 2016
- Work with the sales and marketing team to sign additional agreements to supply rock phosphate to targeted farmers in western Canada to progress our target of at least 10,000 tonnes of sales in 2016
- Continue field trials of direct application rock phosphate in order to develop a broader market
- Progress the Company's 75,000 tonne per annum small mine application for the next stage of Wapiti.
- Commence process for contracting equipment and team for development, production, logistics and sales from its BC projects.
- Build order book for Fertag products and import more product for Queensland and Northern NSW.
To view the complete report, please visit:
http://abnnewswire.net/lnk/A4QWJD43
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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