Montero to Acquire Interest in Greenflash Phosphate Project; Secures Second Project Funding

Montero Mining and Exploration (TSXV:MON) announced that it has entered into a binding letter agreement with Greenflash 251 Ltd. to acquire up to 75 percent interest in the Greenflash Off-Shore phosphate project in South Africa. The company also announced that is has secured its second project funding agreement with Ovation.
As quoted in the press release:

Montero has 6 months from signing to complete financial, legal and technical due diligence and seek TSXV approval. Upon fulfillment of all conditions precedent, Montero shall immediately earn a 49% interest in the Greenflash Project by committing to complete a NI43-101 compliant resource and earn up to a 75% interest by completing a Bankable Feasibility study.
Montero has also entered into a Memorandum of Understanding (“MOU”) with Ovation Capital (“Ovation”) to co-fund the due diligence investigation and ultimately provide project finance for the Greenflash Project. Upon completion of successful due diligence Ovation will have the right to earn 49% of Montero’s interest by providing funding to complete a compliant resource.
Ovation has already committed to complete a pre-feasibility study on Montero’s Duyker Eiland phosphate and fertilizer project for equity in the project (news release 2 March, 2015). The Greenflash Project could potentially provide additional feedstock to a Fertilizer Plant envisaged to be developed in Saldanha Bay by Montero and Ovation.

Dr. Tony Harwood, President and CEO of Montero commented:

Montero is expanding its portfolio of phosphate projects in South Africa with funding partner Ovation Capital. The Greenflash Project has seen extensive drilling providing Montero with meaningful information to serve as basis for developing a resource. Montero and Ovation will focus initially on developing a resource from existing drill core where large areas of phosphate rich sediments have been identified. The acquisition fits with our strategy of developing phosphate rock assets to support a fertilizer plant in Saldanha Bay port.

Click here to read the full Montero Mining and Exploration (TSXV:MON) press release.