FCV Focus Ventures Ltd. (delisted)

Focus Ventures Ltd. (TSX VENTURE:FCV) is pleased to announce that its Peruvian
subsidiary Agrifos Peru S.A.C. has signed a binding Letter of Intent (LOI) with
Juan Paulo Quay S.A.C. for the exploration and acquisition of the Bayovar 12
phosphate mining concession, located 70 km south of the city of Piura in
northern Peru, close to Vale's operating Bayovar phosphate mine. 


Focus believes the Bayovar 12 property shows potential to host a large
sedimentary phosphate deposit and is planning a systematic grid-based drill
program which will commence as soon as exploration permits are received from the
authorities.


Logistics for the 12,575 hectare concession are excellent. It is connected by
sealed road to tidewater and marine port facilities 40km to the west, owned by
the property owner, Juan Paulo Quay, which used the facility for the export of
gypsum mined from the Bayovar 12 concession and phosrock from the Bayovar
deposit, prior to its acquisition by Vale. Juan Paulo Quay is a marine transport
and service provider owned by subsidiaries of Grupo Romero (Peru) and Mamut
Andino C.A. (Ecuador).


The Pan-American Highway crosses the claim at its eastern end and power
transmission lines for the Bayovar Mine, located 15km to the southwest, transect
the property at its northern end. 


"Establishing a foothold in the world-class Bayovar District is another major
milestone in our strategy of acquiring quality phosphate assets in South
America," said David Cass, the President of Focus. "Bayovar is one of the
world's premier phosphate producing regions and benefits from excellent
logistics and infrastructure, with two world-class deposits found there to date
including a producing mine. We regard Bayovar 12 as a key asset that we can
advance quickly to resource stage, and with our other recently acquired
projects, firmly establishes Focus as a major name in Latin American
phosphates." 


Five historical exploration holes drilled within the former gypsum operations
and spaced approximately 1.5 km apart all intersected multiple flat-lying
phosphate beds from 36.5m depth which assayed between 10 - 22% P205. The
phosphate intervals were broadly correlated from hole to hole into at least 6
main units within a sequence of diatomite some 30 - 40m in thickness. The
geology and mineralization are similar to the Bayovar Mine and adjacent Fosfatos
del Pacifico deposit (Hochschild / Mitsubishi / Zuari). 


Under the terms of the LOI, Focus can earn a 70% interest in the claim by
investing up to $15 million in exploration and making a series of cash payments
up to the completion of a positive Pre-feasibility study, after which Focus will
have the first right of refusal to purchase the remaining 30% from the property
owners. 


More information is available on the Focus website: www.focusventuresltd.com.

The Agreement

Under the terms of the LOI, Focus will have 30 days to complete legal and
technical due diligence, after which it will have the right to acquire a 70%
interest in the property by investing up to $15 million in exploration and
drilling, including spending $1 million within 12 months from the date that it
receives its exploration permit from the Peruvian authorities. Focus must
complete a positive Pre-feasibility study by the fourth anniversary and pay the
owners a sum of US$4 million in the following instalments: 




--  $50,000 on signing of the LOI (paid) 
--  $200,000 on signing of the formal Option Agreement 
--  $750,000 6 months after receiving the exploration permits 
--  $3,000,000 on the first anniversary of receiving the permits 



Focus must also pay the owners US$1,000,000 on the second anniversary of
receiving the permits and on each subsequent anniversary until it completes the
Pre-feasibility study. Should the owners decide to sell their 30% interest,
Focus will have the first right of refusal to purchase. 


Background - Geology & Phosphates in the Sechura Desert

The Bayovar District is situated in the Sechura Desert, a north-trending basin
approximately 22,000 km2 in area comprising Miocene-aged rocks covered by recent
sand deposits. Phosphate was discovered in the 1950s during drilling for
petroleum in the Zapallal Formation as beds and horizons of pelletal phosphate
within a sequence of diatomites and sandstones some 200m thick (diatomite is a
sedimentary rock composed of fossilized algal shells and is mined locally for
cement manufacture). The phosphate layers are remarkably regular in P205 content
over long distances, a typical characteristic of marine phosphate deposits. The
soft and friable nature of the phosphate rock and diatomite permits mining by
conventional truck and shovel without the use of explosives. 


Vale's Bayovar Mine is a low cost operation and one of the biggest phosphate
deposits in South America, with a 27 year mine life. Operations began in 2010
with 239.2 million tonnes of Proven and Probable Reserves(i) grading 17.2% P205
and a mine life of 27 years. In 2012, the mine produced 3.21 Mt of phosphate
concentrate grading a minimum of 29% P205 and production is expected to reach
3.9 Mt per annum in 2014(ii). Processing of ore has minimum environmental impact
and involves a series of washing and gravimetric separations using seawater,
followed by rinsing and drying before being loaded on ships and exported to the
Americas, Asia and Oceania. Use of sea water ensures that local water sources
are preserved and chemical reagents are not used in any stage of the processing.
Vale sold minority stakes in the project to Mosaic (35%) and Mitsui (25%) for
$660 million in 2010.


Fosfatos del Pacifico (Cementos Pacasmayo / Mitusibishi / Zuari is developing a
phosphate deposit on its Bayovar 9 concession, located 15km west of Bayovar 12.
Resources are quoted as 541 MT of 18.5% P205(iii) (wet density). 




(i)   Vale 2010 Annual Report                               
(ii)  Vale 2012 Annual Report                               
(iii) Wet Density. Source: Pacasmayo IPO Prospectus Feb 2012



Qualified Person

The scientific and technical information in this release was prepared under the
supervision of Mr. David Cass, Focus's President, who is a member of the
Association of Professional Engineers and Geoscientists of British Columbia, and
a "Qualified Person" in accordance with NI 43-101. 


About Focus Ventures

Phosphate rock is a raw material for fertilizers and vital to world food
production. Focus, through its subsidiary, Agrifos, is acquiring and developing
quality phosphate projects in Latin America where the discovery and development
of new deposits is becoming increasingly important given the expanding
agricultural industry and limited local supply of phosphate for fertilizer
production. 


Further information is available at www.focusventuresltd.com.

ON BEHALF OF THE BOARD

David Cass, President 

Symbol: TSXV-FCV

Shares Issued: 40.1-million

Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or accuracy of
this release.


Forward-Looking Statement

Some of the statements in this news release contain forward-looking information
that involves inherent risk and uncertainty affecting the business of Focus
Ventures Ltd. Actual results may differ materially from those currently
anticipated in such statement.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Focus Ventures Ltd.
Ralph Rushton
(604) 688-5288
(604) 682-1514 (FAX)
info@focusventuresltd.com
www.focusventuresltd.com

Focus Ventures Ltd. (TSXV:FCV)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024

Focus Ventures Ltd. (TSXV:FCV)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024