Quarterly Activities Report for June 2016
Perth, July 29, 2016 AEST (ABN Newswire) - Phosphate exploration and development company, Fertoz ("Fertoz" or the "Company", 
ASX:FTZ) is pleased to provide an update of activities during the quarter ending June 2016.
HIGHLIGHTS
- Fertoz positioning mining operations to deliver into the fast-growing organic agriculture market in North America
- Fertoz signs non-binding Memorandum of Understanding for the sale of 2,000 tonnes of phosphate rock per year subject to completion of farm trials
- Sales from the MoU would add to previously announced 2,000 tonnes of contracted sales, which would together represent 40% of the 10,000 tonnes sales target by the end of 2016
- 1,700t of phosphate rock crushed and available for field trials and sale
- Four agricultural groups currently testing Fertoz certified organic input rock phosphate for long term use which will potentially support the company's sales growth
- Field trials commenced in Saskatchewan and Alberta on wheat and hay crops
- Significant progress on Wapiti permitting and First Nations relationships
- Private placement book build currently underway by the Company's Joint Lead Brokers Blackwood Capital and Novus Capital - Trading halt requested until 2 August 2016.
Commenting on the achievements, Stephen Keith, Managing Director of Fertoz stated:
"The quarter ending June 2016, has been transformative for Fertoz. Not only have we been able to quantify the size and speed of growth of this North American organic agriculture industry, but also we have been able to continue to de-risk our operations by (1) achieving greater sales, well ahead of any targets we set and (2) by moving our projects forward. In the last quarter, our sales team has been successful in starting field trials on multiple crops, providing product samples and tests for multiple potential customers and by generating more sales. We have now sold or have agreements to sell more than 40% of our stated 2016 target, well before we had planned on achieving the sales. In addition, our operating team has done an exceptional job adding new projects, moving permits forward and lining up the contractors and team required to meet our sales goals for 2016. Now, Fertoz looks forward to a quarter focused on two critical items: proving out our model through field trials, growing our sales; and, building out the required infrastructure for our flagship project to allow us to maintain a steady supply of rock phosphate to a fast growing, under-serviced market. This next quarter and following that into 2017 should see Fertoz gain significant momentum in this highly profitable, fast-growing market. We have the team, the strategy and the market - now we start the important task of building this out and generating cash. "
SUMMARY
Canada
- Fertoz has set itself up for success by focusing on the significant, yet under serviced, opportunity in the fast-growing organic agriculture market in North America
- Sales and marketing efforts have yielded significant results both through generating sales and through commencing field trials that will feed into sales growth
- Operations have focused on ensuring that Fertoz was positioned not only to provide the 2016 sales target to customers, but also developing the assets such that we can meet long-term demand in this market
- Fertoz has signed a non-binding Memorandum of Understanding (MOU) for the potential sale of 2,000 tonnes of phosphate rock per year for 3 years subject to the satisfactory performance of a farm trial which is currently underway.
- This MOU adds to the 2,000 tonne contracted sale announced on 25 February 2016 and which is planned for supply in the third quarter of this year and places the Company on track to reach its 10,000 tonnes sales target by end of 2016.
- An additional 730 tonnes have been successfully crushed at a farm in Alberta in May 2016, bringing the total to 1,720 tonnes of crushed phosphate rock ready to be delivered for field trials.
- There are currently 4 agricultural groups testing the benefits and applicability of our certified organic input rock phosphate fertilizer with field trials commenced in Saskatchewan and Alberta on wheat and hay crops.
- Results of these field trials are anticipated to come during the third quarter of 2016, in time for the autumn sales season in the fourth quarter of the year, as the Company had projected.
- The Company has obtained an access permit from Ministry of Mines which provides better access to the Company's permitted 17,500 tonne bulk sample area and which would be used once the Company obtains the 75,000 tpa small mine permit.
- Progress has been achieved on Wapiti's 75,000 tpa small mine permit with the following aspects achieved in the last month: 1) license to cut timber received from Ministry of Forests; 2) permit to operate above 1,400 metres; and 3) protocol Agreement signed with West Moberly First Nation.
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.
- The company continues to seek out opportunities in the USA with a focus on assets that will allow it to supply the largest organic markets in North America.
Australia
- Demand for FertAg 0-8-0 in Australia has remained strong. Product has again sold out in Brisbane and Melbourne and a larger order has been placed for delivery to Brisbane, Sydney and Melbourne in late September.
- The FertAg business has continued to be self-funding.
Planned Activities for September Quarter 2016
For the coming quarter, Fertoz is focused on delivering value through:
- Building out the first BC phosphate project and having 10,000 tonnes of material available for sale ? Working, through the sales and marketing team, to sign additional agreements to supply rock phosphate to targeted farmers in western Canada
- Continuing field trials of direct application rock phosphate in order to develop a broader market
- Progressing the Company's 75,000 tonne per annum small mine application for the next stage of Wapiti
- Commencing the process for contracting equipment and contractors for road development, extraction of bulk sample, logistics and sales from the BC projects
- Building our asset base in the USA to give better access to larger North American markets
- Building the order book for Fertag products and importing more product for Queensland and Northern NSW.
To view the full report, please visit:
http://abnnewswire.net/lnk/63K4K582
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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