Montero Signs Definitive Agreement With Strategic Investor to Develop Phosphate Rock Properties and Fertilizer Plant in Saldanha Bay, South Africa
Montero Mining and Exploration Ltd. has entered into a definitive agreement with Ovation Capital a South African based investment firm that is currently developing a portfolio of mineral beneficiation projects focused on a targeted set of industrial minerals, to fund the development of Montero's phosphate rock projects near the Saldanha Bay Port in the Western Cape, South Africa. As part of the agreement, Ovation shall fund studies relating to an integrated Fertilizer Plant in the Saldanha Bay Industrial Development Zone in close proximity to Montero's projects.
Ovation shall earn a 30% interest by completing a Pre-Feasibility Study and a Bankable Feasibility Study of the South African holding company which is 100% owned by Montero. Ovation is finalizing agreements with 3 large engineering and consulting groups to complete these studies within a 2 year period. The agreement is subject to regulatory approval.
In 2012 Montero completed a compliant Preliminary Economic Assessment ("PEA") of the Duyker Eiland project. Duyker Eiland is the first of Montero's phosphate assets set to be advanced to feasibility.
Upon finalization of the agreements with the various engineering and consulting groups the work programmes will commence and further updates will be provided.