Fertoz signs MoU for 2,000tpa for 3 years
Brisbane, May 5, 2016 AEST (ABN Newswire) - Fertoz Ltd ("Fertoz" or the "Company") (
ASX:FTZ) is pleased to announce that the Company has signed a Memorandum of Understanding (MOU) for the sale of 2,000 tonnes of phosphate rock per year based on a Phosphate Sale and Purchase Agreement (PSA) to be finalized on or before 1 July 2016 or such other date as agreed between the parties. It is the intention of the parties that the contract will run for a term of at least 3 years subject to the satisfactory performance of a trial.
Highlights
- MOU for supply of 2,000 tonnes per year signed with final purchase agreement expected to be finalized by 1 July 2016
- Sales would add to previously announced 2,000 tonnes representing 40% of 10,000 tonnes target fulfilled
This MOU adds to the 2,000 tonne contracted sale announced on 25 February 2016 and which is on track for supply in the third quarter of this year and places the Company right on track to reach its 10,000 tonnes sales target by end of 2016.
The product will be extracted from the Company's British Colombia Projects utilising its currently approved bulk sample permits of up to 27,500 tonnes. The Company will provide product to the potential customer, for trial, from its first batch of 990 tonnes of crushed and pulverised rock phosphate product which was processed in April 2016 (announced 21 April 2016).
Managing Director Stephen Keith commented: "The outcome of our sales efforts so far continues to restate our confidence in our product and the market we are focusing on. With the recently announced certification of our rock phosphate to be used as input in organic farms in Canada and the USA and our proactive approach to reach potential buyers through the channels brought by our team of highly experienced sales and marketing professionals, I believe we are in a position in which we can aim to go beyond our current sales target of 10,000t of direct application rock phosphate in the 2016 calendar year, utilising our currently approved bulk sample permits of up to 27,500 tonnes."
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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