VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/10/13 -- 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.
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