Jul 8 2015
Montero Mining and Exploration Ltd. recently entered into a definitive agreement with Ovation Capital, a South African based investment firm, to fund development of Montero's phosphate rock properties near Saldanha Bay (Ref press release March 2, 2015).
Ovation commissioned DRA Global ("DRA") to review a prior Technical Report on the Duyker Eiland project by AMEC (Ref press release November 16, 2011) and a prior Preliminary Economic Assessment ("PEA") by Turgis (Ref press release February 28, 2012). The objective being to define the parameters which have changed since the original studies and to assess the nature of the work required to complete a Pre-Feasibility Study on the project.
Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "Montero's partnership with Ovation is designed to develop and advance our phosphate assets with a view of mining and extracting phosphate rock and further beneficiating at a proposed Fertilizer Plant at Saldanha Bay port."
The DRA report, which is non NI 43-101 compliant, clearly sets out the parameters that have changed since the prior studies were undertaken and lists the positive attributes of the project. In addition, a number of key issues were highlighted that require more detailed assessment in the pre-feasibility study.
The review undertaken by DRA has identified that the project economics are positive but very sensitive to phosphate rock prices and to currency exchange rates in South Africa.
Ovation will earn a 10% interest in the Phosphate project by completing a pre-feasibility study and a further 20% by completing a bankable feasibility study for a phosphate rock mine at Duyker Eiland and an integrated Fertilizer Plant at Saldanha Bay, South Africa.