Focus Ventures Ltd. is pleased to announce that its Colombian subsidiary, Agrifos Colombia Corp ("Agrifos"), has signed an option agreement with a private Colombian company for the Luisa Maria Phosphate property located in the Department of Boyaca, Colombia, and a strategic agreement to acquire additional phosphate concessions in Colombia.
The Luisa Maria property comprises approximately 1,651 hectares of titled mining concessions located in the Department of Boyaca, some 3 hours drive by asphalt highway from the Colombian capital, Bogota. Sampling by Agrifos has identified at least 2 high grade phosphorite beds. Sampling has shown grades from 7.9% P205 to 29.2 P205 (10 samples averaged 19.4 % P205) with the phosphatic units mapped over at least 12 km. The beds are between 1 - 3m thick, with widths up to 7m locally occurring in calcareous mudstones and siltstones belonging to the Cretaceous Guadalupe Group.
Under the terms of the Agreement, Agrifos can earn a 70% interest in the property by investing a total of $750,000 in exploration and development over 5 years, including a payment of $50,000 on signing (paid). Agrifos must spend $100,000 during the first 18 months from the signing of the Agreement and $300,000 in cumulative expenditures during the first 36 months of the Agreement. Focus can purchase the outstanding 30% interest by paying the owner 1% of the value of each tonne of phosphatic rock defined in Measured and Indicated Resource categories and averaging 20% P205 or more based on the price of Bayovar FOB* rock phosphate. (For resources averaging below 20% P205, payment will be calculated based on the following formula % = X/20, where X = average grade).
Agrifos has also signed a strategic alliance with the titleholder to acquire additional phosphate claims in Colombia, under the same terms, for areas currently under application with the Colombian National Mining Agency (NMA). The NMA declared a moratorium on new claim applications in February 2011 in order to overhaul its cadastral system and deal with a large backlog of new claims applications. The new system is expected to be operative by June 2013.
* Free on Board
Source: http://www.focusventuresltd.com/