HOUSTON (ICIS)--Eagle Star Minerals announced it has arranged a private placement of $2.5m, which it will use towards the acquisition and start of a direct application fertilizer facility at its Bomfim project in Tocantins state, Brazil, the Canadian fertilizer company announced on Tuesday.
Direct-application fertilizer is produced by mining high-grade phosphate then crushing the nutrient and milling the final product. This process has been used commonly in parts of Brazil with the primary customer base being local farmers supplied from the neighbouring Itafos mine for the past five years.
Company officials said it will allocate the money towards the acquisition and implementation of a processing facility in preparation for advancing towards the first stage of their production plans for 2014.
In addition, Eagle Star has decided to continue drilling on selected targets already identified throughout the Bomfim claims with the objective of further expanding potential deposits. The company is considering building a thermal phosphate process operation at the site as part of its future development plans.A thermal phosphate process operation converts phosphate ore into fertilizer.