DuSolo Signs Deal for Discount Phosphate

DuSolo Fertilizers (TSXV:DSF) announced its signed an agreement to purchase phosphate from a fertilizer producer at a discounted rate. According to the agreement, DuSolo will buy 33,071 tonnes of phosphate rock at C$22 per tonne, for a total amount of $751,636 from a producer located in close proximity to its Bomfim project in Brazil.

As quoted in the press release:

DuSolo intends to blend the 33,071 tonnes of phosphate around 10% P2O5 with high-grade phosphate from its Bomfim Project to produce Direct Application Natural Fertilizer (“DANF”) with an average grade of ~14-15% P2O5. The Company will then sell this DANF to farmers in the region who have expressed their interest in this specific product.

President and CEO, Eran Friedlander, commented:

The favorable terms we were able to negotiate as part of this purchase will not only help DuSolo meet its production targets this year, but are expected to greatly improve the economics of DANF production in coming months,” said Eran Friedlander, President and CEO of DuSolo. “With a 40,000 tonne sales contract already in place and additional orders expected shortly, we believe 2015 is going to be a busy year for DuSolo.”

Click here to read the full DuSolo Fertilizers (TSXV:DSF) press release.