DuSolo Fertilizers Inc. ("DuSolo" or "the Company") is very pleased to report it has signed a lease agreement to secure a facility for processing Direct Application Natural Fertilizer ("DANF") and completed the necessary upgrades to the facility to allow for its operation.
Under the terms of the agreement, the Company has assumed the right to operate the facility for a term of one (1) year with the option to renew the lease for an additional year immediately after.
"Today's news represents a huge milestone achieved by the Company. Our goal from day one was to become a fertilizer producer in arguably the world's largest fertilizer market and now we are one giant step closer to achieving this objective," stated Eran Friedlander President & CEO of DuSolo.
The DANF processing facility is located twenty nine (29) kilometers from DuSolo's proposed mine site (Target H "Santiago") and consists of both crushing and milling circuits connected by way of conveyor belt systems. The primary and secondary crushing equipment work in combination with two (2) sets of screens that allow the mineralized material to be separated and upgraded. The separated material is then fed to hammer mills in order to achieve the desired grain size of the final product.
Most recently the Company completed the necessary installation of a new crusher that will enable the facility to process at full capacity 80,000 tonnes of DANF per annum. Due to strong demand for DANF in the region, DuSolo has already commenced work on an expansion plan for the facility which will allow a further increase in processing capacity to 160,000 tonnes of DANF by 2015.
To view Processing Facility, click here: http://media3.marketwire.com/docs/DuSolo1.jpg
DIRECT APPLICATION NATURAL FERTILIZER
With the facility now in place, DuSolo, through a series of crushers, screens and mills intends to process the high-grade phosphate discovered at the Santiago target into three (3) DANF products of different phosphate grades (12%, 15%, 18% P2O5). The DANF will then be sold to local farms and agricultural centers in the vicinity of the project's area. DANF is used alongside the standard and more costly Nitrogen Phosphate and Potash ("NPK") blend to compensate for elevated nutrient depletion as a result of heavy tropical rainfalls. Farmers in the region have become accustomed to using DANF on their crops over the past several years but due to recent restrictions in supply, are no longer able to source it locally. DuSolo, as a result of its recent high-grade discovery, intends to fill the current void in this rapidly expanding marketplace by providing farmers with a local alternative supply for years to come.
The Company has been working closely with the relevant governmental agencies and is well advanced in all aspects of the permitting process. The permits currently under review with decisions expected shortly are as follows:
- DANF Processing Facility Environmental (Licença Ambiental)
- DANF Processing Facility Operating License (Licença de Funcionamento)
- Mining Site (Santiago Target) Environmental License (Licença Ambiental)
- Mining Permit (Guia de Utilização)
As a result of recent corporate developments and future activities, the Company has decided to grant an aggregate of 1,675,000 stock options at a price of $0.23 per share to some of the Company's recently appointed directors and to its business consultants as per the Company's 2014 stock option plan. The options are valid for a 5 year period expiring August 4th, 2019 and are subject to the provisions of the TSX Venture Exchange.
ABOUT THE COMPANY
DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government, to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.
The Company's shares are publicly traded on the TSX Venture Exchange under the symbol DSF, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.
On behalf of the Board of Directors
DuSolo Fertilizers Inc.
Eran Friedlander, President