Story here out this morning.....relevant to the previous post.
Note market cap after the IPO, of $85m to produce 32% phosphate from their very modest deposit....at MT ISA
Says it all really about what we may have here with Minbos.
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Paradise growing phosphate exports
by: Tim Morris From:The Australian September 11, 201212:00AM
ABOUT one quarter of fertilisers are manufactured from naturally occurring deposits of phosphate rock mineralisation.
Collectively, Morocco, Iraq, China, Algeria, Syria and Jordan control 90 per cent of the world's remaining known phosphate reserves.
Australia's share of global reserves stands at less than 0.5 per cent, and is mainly attributable to Phosphate Hill near Mount Isa, Queensland.
Discovered in 1966 and now operated by Incitec Pivot (IPL), Phosphate Hill produces about 2 million tonnes per annum (tpa) of high-grade phosphate rock for the on-site production of 900,000 tpa of fertiliser.
Australia's only other operating mine, located on Christmas Island, sells unprocessed ore directly into export markets.
The coming listing of Paradise Phosphate aims to further develop our nation's export industry for the mineral.
The company has a portfolio of advanced phosphate assets in Queensland's Mount Isa region, covering a total area of 1533 sq km. Its most developed asset is the Paradise South deposit, which hosts proved and probable reserves of 198 million tonnes.
With a grade around half that witnessed at Phosphate Hill, product mined at Paradise South will need to be upgraded via beneficiation.
As construction of such processing facilities is capital intensive, the company aims to initially develop a higher grade deposit north of the project area. With seven million tonnes of Resources in the Indicated and Inferred categories, the high grade deposit offers limited scale, but appears suitable for sale as direct shipping ore (DSO).
Float proceeds are earmarked for completion of a bankable feasibility study into a DSO operation and subsequent mine development.
Together, these assets have witnessed over $100 million worth of development during the last decade by major shareholder Legend International.
New investors are gaining entry at a discount to historic project spend, among which Acorn Capital is the most significant.
Value growth rests on off-take negotiations.
While rock phosphate prices have increased threefold since 2007, constrained market volumes require a collaborative approach for new developments.
COMPANY: Paradise Phosphate
ASX CODE: PPO
SHARES ON OFFER: 40 million
Listing Price: 50c
MARKET CAPITALISATION: $85 million
LISTING DATE: September 17
Tim Morris is an analyst at www.wise-owl.com
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June 27, 2012 10:30 AM Eastern Daylight Time
Legend International Holdings, Inc. Announces Private Placement and Project Update for Paradise Phosphate Ltd.
MELBOURNE, Australia--(BUSINESS WIRE)--Legend International Holdings, Inc (OTCBB:LGDI), (“Legend”), is pleased to announce that it has received a subscription from Regals Fund LP for a private placement of approximately 22.6 million new shares of its Common Stock for an aggregate purchase price of approximately US$2.26 million.
Legend also provides an update below in regard to its phosphate project owned by its 100% subsidiary, Paradise Phosphate Ltd (“Paradise”).
Private Equity Placement
Legend has received a subscription from Regals Fund LP, who is an existing shareholder of Legend, for 22,640,725 new shares of its Common Stock for a purchase price of US$0.10 per share for an aggregate purchase price of $2,264,072.50. The proceeds of the share subscription will be used for general corporate and administrative purposes.
Paradise Phosphate Ltd • The company strategy will focus on the development of the Paradise North Project which aims to mine and ship direct shipping ore (“DSO”) to customers in the Asian and Australasian region by Q2 2014. • A Memorandum of Understanding has been signed with Ballance Agri-Nutrients Ltd of New Zealand (“Ballance”). •A bulk sample of DSO from Paradise North has been shipped to Ballance on 27 June 2012.
Company Strategy
Paradise’s strategy will initially focus on the production of phosphate rock DSO from the Paradise North Project. The secondary objective will be to pursue the significant additional growth opportunities at the Paradise South Project (Paradise South beneficiation plant and Mount Isa fertiliser complex), the D-Tree Project (resource definition at the D-Tree deposit) and the Golden Cross Joint Venture Project (resource definition at the Highland Plains, Lily Creek, Sherrin Creek and Quita Creek deposits).
Paradise aims to mine 1Mtpa of phosphate rock DSO from the Paradise North Project at an average grade of approximately 28% P2O5 and commence shipments by the second quarter of 2014. Prior to achieving this, Paradise will need to convert the known high grade mineralized material (currently estimated at 7.3Mt at 28.1% P2O5 of Australian JORC compliant Indicated and Inferred Resources) within the core of the Paradise North deposit into a Mineable Ore Reserve. Results from the bulk sample test work will provide Paradise with the customers preferred rock specifications which will be used in the estimation of the Ore Reserve and development of a Mine Schedule. Paradise will also aim to complete a feasibility study on the Paradise North Project by the second quarter 2013.
Previous studies conducted by Legend have been focused on the development of a beneficiation plant at the Paradise South Project, capable of producing 1Mtpa of a higher grade concentrate at 32% P2O5, and a fertiliser complex in Mt Isa capable of producing DAP and MAP high analysis fertiliser. These projects represent significant additional growth opportunities providing a strong project pipeline for Paradise and will be pursued as the company’s ultimate goal. As a first step in achieving this goal Paradise will concentrate on the Paradise North Project to begin production of phosphate rock DSO.
Paradise is investigating the various funding options available to it to advance the phosphate projects including equity funding through an IPO and listing of Paradise on the Australian Stock Exchange, strategic partner investment, off-take and funding agreements with potential customers, bank finance or other debt instruments. Paradise aims to have funding arrangements settled in the coming months. Paradise is still continuing discussions with international fertiliser production and fertiliser trading companies for potential off-take and investment to develop both the Paradise North and Paradise South Projects.
MNB Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
(20min delay)