Focus Ventures Ltd has signed a Memorandum of Understanding (MoU) with established fertilizer trading company, Keytrade A.G., for the off-take of phosphate rock from the company's Bayovar 12 phosphate project in northern Peru.
Highlights of the MoU are:
- Bayovar 12 rock phosphate product to be purchased by well-established international fertilizer merchant.
- Volume is up to 1 000 000 tpy of the planned annual production.
- Initial 5 year term.
- Product destined for the direct application agricultural plantation business and phosphate fertilizer producer markets.
This MOU marks a significant milestone for the Company since it released the findings of its Pre-Feasibility Study on the Bayovar 12 project in May 2016. Under the MOU, Keytrade will purchase, on an FOB Incoterms basis, up to 1 000 000 metric tons per annum of rock phosphate from future production from the Bayovar 12 project. Product will be delivered by Keytrade for direct application use by plantations markets and downstream phosphate fertilizer producers.
Securing this MoU demonstrates that there is demand for Bayovar 12 rock phosphate product, and begins the process for the Company to develop an off-shore marketing strategy with Keytrade that can provide the platform to finalize off-take arrangements.
Focus President, Gordon Tainton, commented: "We are very pleased to have secured our first export off-take MoU for rock phosphate from the Bayovar 12 project and we are looking forward to converting this MoU into a commercial purchase contract in the future. This first MoU covers a relatively large share of our planned future production which underpins the development of our project."
Read the article online at: https://www.worldfertilizer.com/phosphates/24072017/focus-ventures-signs-mou-with-keytrade/