BY BEING A DOMESTIC FERTILIZER PRODUCER, DUSOLO IS ABLE TO OFFER A PREMIUM PRODUCT AT A SIGNIFICANTLY LOWER COST
- Entered into a two-year, 60,000 tonne sales contract (30,000 tonnes per year) for its 15% P2O5 Direct Application Natural Fertilizer product with a local Brazilian fertilizer distributor
- Over the term of the Contract, the Buyer has agreed to pay BRL230 per tonne for total proceeds of BRL13,800,000 or approximately C$5,500,000
- Assets host at surface, high-grade phosphate mineralization, which allows for a simple mining and processing method
- Direct Application Natural Fertilizer (DANF) product is in high demand in the region
- No additional transportation or logistics costs are added to our DANF product prices
BRAZIL IS ONE OF THE WORLD’S FASTEST GROWING AGRICULTURAL ECONOMIES
- World’s largest exporter of sugar, coffee and orange juice and the second largest in soybean exports
- Domestic fertilizer supply does not meet current demands
- Brazil currently imports more than 50% of phosphate fertilizers from it uses overseas
- Significant transportation and logistic-related costs are added to imported fertilizers
MANY NEAR TERM CATALYSTS EXPECTED
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Entering into additional DANF product sales contracts
- Doubling capacity at  processing facility to 160,000 tonnes per year
- Updating the National Instrument 43-101 Resource Estimate to include results from the 2015 drill campaign – Recent drill results confirm presence of additional high-grade phosphate mineralization beyond areas identified in initial resource estimate
- Third Party Economic Evaluation of Operations Planned for 2015
- Cash flow from operations
PHOSPHATE IS BECOMING AN IMPORTANT COMMODITY
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The growing global population is creating an ever-increasing demand for food
- Agricultural production requires the use of fertilizers from three essential minerals Nitrogen (N), Phosphorus (P) and Potassium (K) or (“NPKâ€)
- Demand for phosphate-based fertilizers is rising, while existing global phosphate reserves are declining
- It’s estimated that “peak phosphorus†production will occur by 2030
- Brazil’s has a substantial shortage of domestically produced phosphate fertilizers; as a result the government considers it to be a strategic commodity
ADVANTAGES OF OPERATING IN THE CERRADO REGION
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The Cerrado region is home to the largest arable land mass in the world – Majority of future increases in global food production is expected to come from this region
- The tropical rains in the Cerrado wash away nutrients, leaving the soil poor for farming and needing to be fertilized frequently
- Cerrado is land locked, therefore making fertilizer imports very expensive
- Within a 500 km radius of DuSolo’s processing facility:
- 1.2 million tonnes of phosrock is being consumed every year
- 585 farms and agricultural centres exist
- DANF consumption is growing at a compound annual growth rate f 6%
- No domestic production
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