Focus Ventures Provides Bayovar Update, Announces Proposed Private Placement

Focus Ventures (TSXV:FCV) reported that the company has engaged a third-party mining consultancy to undertake an independent review of its prefeasibility mine plan and production schedule for the Bayovar project. The company also announced a proposed $250,000 private placement.
As quoted in the press release:

Mine Optimization Study
In January 2016, Focus reported the results of an Independent NI 43-101 Prefeasibility Study (“PFS”) (see news release dated January 5, 2016). The Company subsequently engaged a third-party mining consultancy (Independent Mining Consultants of Tucson, Arizona; “IMC”) to undertake an independent review of the PFS mine plan and production schedule.
IMC are reviewing the staged development of the open pit to achieve full capacity by the end of the second year, which would allow the construction of a single larger processing plant making both 24% and 28% P₂O₅ products from Year 2.
The study will also review in-pit / ex-pit waste storage with the aim of minimizing haulage distances, reducing mine opex and improving the general project economics in the PFS.
David Cass, the President of Focus, said: “We are optimistic that the current review will lead to an improved mine model for the Bayovar 12 project. As in most strip mining operations, the economic model is sensitive to haulage of waste so any reductions in the movement of waste rock should positively impact the operating expenditures feeding in to the cash flow model.”
Marketing and Private Placement
Focus’ management has attended a number of agri-business and mining conferences since the start of 2016 with the aim of finding off-take partners or potential strategic investors for the project. Despite the tough market conditions for miners, the Company is pleased to report that conversations have been encouraging, and a number of groups have expressed interest in purchasing phosphate rock and/or partnering with Focus in development of the project. (The reader is cautioned that there is no guarantee that these discussions will result in off-takes or investments). There is broad industry recognition of the high quality of Bayovar phosphate rock and its value as a direct application fertilizer.
Discussions are also underway with several financial institutions regarding the possible raising of funds to complete a proposed bulk sampling program and feasibility study, and to repay the Sprott bridge loan that Focus arranged in 2015 (see news release dated March 10, 2015). In the meantime, in order to stay within the covenants of the Sprott loan, Focus is proposing to complete a small, non-brokered private placement of up to 3.85 million units at $0.065 each for proceeds of up to $250,250. Each unit will consist of one common share and one warrant which will entitle the holder to purchase one additional common share of the Company for one year from closing at $0.065 per share. No finders fees will be payable. The placement is subject to stock exchange approval.

Click here for the full press release.