Balamara Resources Limited is pleased to advise that it has signed separate Memorandums of Understanding to add two valuable strategic partners to its consortium for the world-class Togo Phosphate Project in West Africa. The Company recently announced that it had submitted its final tender documents for the Project with the Government of Togo on 17 January. The tender requirement considers one party to develop and mine the Project and a second party to undertake downstream beneficiation on upgraded rock phosphate to produce phosphoric acid and ultimately fertilizer products. Through the addition of these two new partners the Company has now comprehensively addressed all aspects of the tender requirement, delivering an end-to-end solution for the Balamara consortium.

Balamara has signed an MOU with ASX-listed Minemakers Limited, an experienced phosphate company which owns 100% of the 1.5 billion tonne Wonarah Phosphate Project in Australia and has recently sold its interest in the vast Sandpiper Phosphate Project in Namibia. Under the terms of the MOU, Minemakers will assist Balamara in technical matters associated with the production of phosphate in Togo, with their experience and expertise strengthening the overall Balamara tender bid. In return for this assistance, Balamara has given Minemakers a right of first refusal for an equity position in the project should Balamara decide to introduce an equity partner at a later stage, on commercial terms and entirely at its discretion.

In addition, Minemakers has a minority position in a US company, JDC Phosphate Inc, which is developing a new cost-effective and environmentally-friendly technology for the production of super phosphoric acid that could ultimately prove very valuable for the Togo Project.  Under the terms of the MOU Balamara would consider this solution for production of SPA in Togo if awarded the tender. Minemakers has provided assistance to Balamara in the tender document and will continue to add value wherever possible throughout the remainder of the tender process and thereafter. Separately, Balamara has signed an MOU with Deepak Fertilisers and Petrochemicals Corporation Limited, a listed Indian company with significant experience in the production and sale of fertilizer products, including phosphoric acid.

The Togo tender requires Balamara to introduce at least one downstream partner for production of acid and fertilizer products and DFPCL is a leader in this area. It is among the largest producers of fertiliser in Western India and one of the largest producers of technical ammonium nitrate in the world, and it is a significant consumer of phosphoric acid. The Indian market is also among the fastest growing fertiliser markets in the world. DFPCL is a mature and credible partner with the capability to provide a substantial investment into the Togo Project for downstream acid production, which would create a strong market nearby for upgraded phosphate produced by Balamara. DFPCL also has a proven ability to set up and manage fertiliser and chemicals projects. Balamara’s Managing Director, Mike Ralston, said both Minemakers and DFPCL brought significant value to the bidding consortium, with complementary areas of expertise and development capability.

“The Togo Project is a world-scale deposit with over 2 billion tonnes of phosphate ore which has been extensively drilled and analysed.” Mr Ralston said. “This makes it big enough to ultimately satisfy both companies’ demand for upgraded phosphate, and having two large offtake options potentially located immediately adjacent to the beneficiation plant would add considerable value to the overall project.” “The deposit is shallow and therefore considered relatively easy to mine and it is located only 30km from an existing port facility with infrastructure in place, which is a key advantage for any bulk commodity project.” Mr Ralston added “The addition of both Minemakers and DFPCL has added significant weight and experience to our tender document and Balamara remains confident it can deliver a first-class result for the Government of Togo if it is awarded this Project in the near future.” The Company believes that the tender process will move quickly to a conclusion in 2013.