EDITOR: | September 2nd, 2013

Fertoz Limited (ASX code: FTZ) begins trading on the ASX

| September 02, 2013 | No Comments
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September 2, 2013 (Source: Fertoz Limited) — Highlights:

  • FERTOZ makes its debut on the ASX
  • Strongly supported IPO raises A$4 million
  • High priority targets to be drilled in the near term
  • Focused on small, short to medium term, production opportunities in Canada

Phosphate exploration and development company Fertoz Limited (ASX Code: FTZ) has today listed on the Australian Securities Exchange (ASX).

The Company raised $4 million from its oversubscribed initial public offering (IPO) which was managed by Blackwood Capital Limited. Fertoz issued 20 million shares at 20 cents each, with a total of 45 million shares on issue giving the Company a market capitalisation of $9.0 million.

Fertoz is targeting phosphate in British Columbia, Canada with its ultimate goal to transition to a fertilizer producer initially supplying Canadian and USA markets.

The Company’s two-year exploration budget is focused on developing its exploration assets in Canada – Wapiti, Barnes Lake and Crows Nest.

Wapiti East is close to transport and infrastructure associated with the coal mines at Tumbler Ridge, whilst Barnes Lake and Crows Nest are tenements in the south-eastern corner of British Columbia. All are close to the extensive Canadian rail network that leads into the US and to west coast deep water ports. Unlike many explorers in the fertiliser sector, Fertoz is targeting small, near production, high grade deposits that can be brought into production with minimal capital expenditure.

“We are not looking for tens of millions of tonnes of low grade phosphate that requires hundreds of millions of dollars of capital to get into production,” Fertoz Managing Director Dr Les Szonyi, who has more than 30 years’ experience in the chemicals processing industry, said.

“Rather, we are looking for small deposits that we can commercialise in the near term at a relatively low cost to accelerate the company to a positive cash flow position. There is also a growing organic foods market in North America which we hope to supply should we discover suitable deposits.”

Dr Szonyi went on to say “British Columbia has excellent transport and infrastructure solutions which work in with our ultimate goal of phosphate production.”

Dr Szonyi said the oversubscription of the IPO demonstrated the quality of the Company’s projects in British Columbia.

James Chisholm, the Company’s Non-Executive Chairman, has been working in the engineering and resources sector for 30 years. He is Non-Executive Chairman of Atrum Coal NL (ASX: ATU) which was one of the ASX’s best IPO’s in FY2012.

Investment banker Peter Bennetto and, Adrian Byass, a geologist, make up the remainder of the Board.

“We have a good team, prospective ground, and a focus on low capital operations and shareholder returns,” said Dr Szonyi.

“We are looking forward to commencing drilling in the near term.”

Fertoz also has some Australian exploration assets. The plan with these is to seek out suitable joint venture partners that provide funding for exploration and development, in return for an equity interest in the relevant Australian project. This allows the Company to focus on its North American opportunities.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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