Focus Acquires High Grade Phosphate Project in Colombia and Signs Strategic Agreement
VANCOUVER, Jan. 17, 2013 /PRNewswire/ - Focus Ventures Ltd. (TSXV: FCV) is pleased to announce that its Colombian subsidiary, Agrifos Colombia Corp ("Agrifos"), has signed an option agreement with a private Colombian company for the Luisa Maria Phosphate property located in the Department of Boyaca, Colombia, and a strategic agreement to acquire additional phosphate concessions in Colombia.
The Luisa Maria property comprises approximately 1,651 hectares of titled mining concessions located in the Department of Boyaca, some 3 hours drive by asphalt highway from the Colombian capital, Bogota. Sampling by Agrifos has identified at least 2 high grade phosphorite beds. Sampling has shown grades from 7.9% P205 to 29.2 P205 (10 samples averaged 19.4 % P205) with the phosphatic units mapped over at least 12 km. The beds are between 1 - 3m thick, with widths up to 7m locally occurring in calcareous mudstones and siltstones belonging to the Cretaceous Guadalupe Group.
Under the terms of the Agreement, Agrifos can earn a 70% interest in the property by investing a total of $750,000 in exploration and development over 5 years, including a payment of $50,000 on signing (paid). Agrifos must spend $100,000 during the first 18 months from the signing of the Agreement and $300,000 in cumulative expenditures during the first 36 months of the Agreement. Focus can purchase the outstanding 30% interest by paying the owner 1% of the value of each tonne of phosphatic rock defined in Measured and Indicated Resource categories and averaging 20% P205 or more based on the price of Bayovar FOB* rock phosphate. (For resources averaging below 20% P205, payment will be calculated based on the following formula % = X/20, where X = average grade).
Agrifos has also signed a strategic alliance with the titleholder to acquire additional phosphate claims in Colombia, under the same terms, for areas currently under application with the Colombian National Mining Agency (NMA). The NMA declared a moratorium on new claim applications in February 2011 in order to overhaul its cadastral system and deal with a large backlog of new claims applications. The new system is expected to be operative by June 2013.
* Free on Board
Meeting future demand for phosphates will remain problematic due to the scarcity of resources, particularly in the Americas, and given the small number of producing countries.
Phosphate is a key raw material for chemical fertilizers, which are part of the Food Supply Chain. Given the current global food crisis due to the world's growing population and economic development, demand for worldwide fertilizers is expected to grow. Approximately 75% of global phosphate resources are from marine sedimentary phosphate deposits which are typically amenable to beneficiation to produce marketable phosphate rock concentrate or chemical grade fertilizers. With the growth of new markets such as Brazil, India and Indonesia and scarcity of resources, particularly in the Americas, there will be increasing demand for alternative sources of rock phosphate.
Focus is acquiring phosphate projects in Latin America. Other projects acquired to date include the Machay and Quebranta phosphate properties in Peru. For further information, please call 604-688-5288 or visit our web site www.focusventuresltd.com.
Sampling Quality Analysis and Quality Control
Rock samples were prepared at ALS Chemex's preparation facility in Bogota, Colombia and analyzed in Lima, Perú. Phosphate was determined by X-Ray Fluorescence Spectroscopy (XRF), the sample is fused with a 12:22 lithium metaborate - lithium tetraborate flux, and then poured into a platinum mould; the resultant disk is in turn analysed by XRF spectrometry. ALS Chemex's quality control system complies with International Standards ISO 9001:2000 and ISO 17025:2005. Analytical accuracy and precision are monitored by the analysis of reagent blanks samples. Quality control is further assured by Focus's own QA/QC program which involves the insertion by Focus personnel of blanks into the sample stream at regular intervals in order to independently assess analytical precision and accuracy of each batch of samples as they are received from the laboratory.
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
Focus Ventures is developing a diversified portfolio of quality silver, gold, copper and phosphate properties in Peru, Mexico and Colombia. Backed by an experienced technical team of geologists and consultants, Focus's strategy is to identify and acquire former producing mines or untested gold and silver and base metal properties that show potential to become new mines.
ON BEHALF OF THE BOARD
David Cass, President
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.
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.
SOURCE Focus Ventures Ltd.