Junior phosphate miner CROPS Inc., Vancouver, which is developing the Bayovar 12 phosphate deposit in Peru, said Dec. 11 that ongoing discussions with several large consumers of elemental phosphate, or P4, have made it optimistic that the talks may result in a feasibility study in early 2019. CROPS (Certified Reactive Organic Phosphate Supply), formerly known as Focus Ventures Ltd. (GM April 13, p. 31; March 9, p. 28), believes the study will be financed by a joint venture or strategic partnership with one or more of the international players in this market.
CROPS told shareholders in June (GM June 15, p. 30) that it was studying the feasibility of building a P4 plant to utilize phosphate rock from its Bayovar 12 deposit. It noted that the product is an essential ingredient for the production of glyphosate-herbicide such as Roundup, engine oil additives such as phosphorus pentasulphide (P2S5), and fire and flame retardants, as well as products for the lubricant and battery markets.
CROPS maintains that for several years there has been no available P4 production supply in the Americas or Europe to fill the growing strong demand. It said Bayovar 12 has all the required material inputs to produce and transport P4, and initial analysis by management and consultants indicate P4 can be produced at competitive prices, though a feasibility study will be needed for confirmation.
In other news, CROPS also announced that it that it proposes, subject to TSX Venture Exchange approval, to issue a total of 250,000 common shares to pay quarterly interest installments totaling $12,500 due under previously issued convertible debentures. The number of shares to be issued is based on an annual interest rate of 10 percent and a deemed issuance price per common share of $0.05.