London-based organic phosphate producer Keras Resources PLC recently announced that it now owns 100 percent of Falcon Isle Resources LLC and Falcon Isle Holdings LLC (collectively Falcon Isle), having acquired the outstanding 49 percent minority interests of Falcon Isle from the Helda Living Trust (HLT). Falcon Isle owns the Diamond Creek organic phosphate lease and mine and the Spanish Fork processing facility in Utah.
Keras said it now has assumed full management of Falcon Isle, and production has recommenced operations at the processing facility. Processing was temporarily halted in late 2021 due to financial issues (GM Nov. 12, 2021).
“We are delighted to have acquired 100 percent of Falcon Isle, securing the high-grade Diamond Creek phosphate mine and strategically located Spanish Fork processing plant in a very buoyant organic fertilizer market,” said Keras CEO Russell Lamming. “Although processing operations were temporarily suspended whilst we sought this resolution, our management team has been on site regularly to oversee sales from our inventory of processed material and ensure business continuity, specifically retaining our customer base and maintaining relationships with key contractors.”
He said payment terms have been structured to use cash generated from the operation and minimize additional funding. He added that the company has a three-month window to explore financing options before the first tranche is due, and they have already initiated discussions with key customers to look at funding solutions.
Lamming said the company has a total mined inventory of over 10,000 tons, including 4,000 tons of processed, saleable product available, and that it is well placed to convert this to cash flow and increase market share. He added the company will also be consolidating the long-term future through a targeted exploration program to underpin future production.
“The organic phosphate market is on an upward trajectory, with robust long term fundamentals; operations have recommenced, and we look forward to realizing the full and true value inherent within the Diamond Creek asset,” Lamming added.
Keras purchased the outstanding 49 percent equity interest for total consideration of US$3.2 million, including loans repaid to the vendor of Falcon Isle of US$1.81 million.
In related news, Keras said on April 12 Utah mining and environmental officials recently conducted their annual inspection of the mine, and Keras received all ongoing approvals in line with the project’s license obligations.
Keras said its team will now start the annual rehabilitation on the access roads and begin trucking the approximately 5,200 tons of run-of-mine phosphate rock remaining at the lay-down area from last year’s mining campaign to the processing facility. An additional 1,500 tons of blasted ore will similarly be excavated and hauled from the pit to Spanish Fork during the early summer months.