Bifox buys into Peru’s 550mt Bayovar 9 phosphate rock project

Bifox has acquired a 16.7% stake in Fosfatos del Pacífico (Fospac), the owner of the 550-million-tonne Bayovar 9 phosphate rock project in northern Peru, for $10M in cash, with an option to acquire the remaining stake.

The stake was purchased from Fossal, part of the Hochschild group, Bifox said. The company holds a call option over the remaining 83.3% of Fospac, exercisable for $50M following a planned pre-IPO fundraising.

Bayovar 9 holds a total resource of 550 million tonnes, comprising 209.3 million tonnes in the measured category, 183.6 million tonnes indicated and 153.3 million tonnes inferred. The deposit sits about 15 km from a port on Peru’s northern coast, giving it direct access to seaborne export routes.

The company plans initial output of 2.5 million tonnes per year, with capacity expandable to 5 million tonnes. Chief executive Tim Koster said the deal positions Bifox as a supplier of phosphate rock, a material classed as critical by the United States, European Union, United Kingdom, Japan, Canada and South Korea.

Production timelines will follow the pre-IPO raise that triggers the buyout option.

Source: World Fertilizer