Sep 10 2015
DuSolo Fertilizers Inc., ("DuSolo" or "the Company") is pleased to announce that it has entered into an agreement ("the Agreement") with Mineração Batalha e Participações Ltda. ("the JV Partner") to acquire the São Roque Phosphate Project ("São Roque" or "the Project") in southeast Brazil.
The Project's highlights include:
- Located within the agribusiness region of Minas Gerais and São Paulo states, with many coffee, orange and sugar-cane (ethanol) plantations in the surrounding area.
- At surface, high-grade phosphate mineralization has been identified with multiple grab samples from outcrops confirming >20% P2O5.
- Geophysics anomalies very well defined and confirmed by surface sampling.
- Close proximity to infrastructure, including roads, rail, water and power, and existing fertilizer producers. City of Piumhi is 40 km from the Project.
- 70% interest earned through commitment to invest in exploration and project development. No direct payment to JV Partner.
"São Roque is an excellent addition to the Company's portfolio of projects. With this acquisition, DuSolo has phosphate assets throughout the Cerrado, one of the world's fastest growing agricultural regions," said Darren Bowden, Chief Executive Officer. "Despite the current downturn in Brazilian fertilizer demand, the Company remains optimistic about demand recovering in the mid to long term and therefore continues to pursue its expansion strategy within Brazil."
Under the terms of the Agreement, DuSolo will carry out an estimated C$100,000 drill program in lieu of payment to the JV Partner. The Company will drill a minimum of 200 meters to test the thickness and extension of the mineralized profile. Contingent upon receipt of positive results, the parties will then form a partnership with participation interest allocated at 70% to DuSolo and 30% to the JV Partner. The newly formed partnership will carry out an exploration program aimed at defining a resource that can be added to DuSolo's future development pipeline. The cost of exploration will be funded in full by DuSolo, while any future production costs will be distributed amongst the partners in accordance with their participation interest. At any given time, DuSolo can choose to end the partnership or alternatively, exercise a call option to acquire the remaining 30% for a cash payment of US$3 million.
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.
On behalf of DuSolo Fertilizers Inc.
Darren Bowden, Chief Executive Officer