Agrium - Wil need feedstock for Redwater...Hmm! PhosCan's depoit is the only advanced high grade Phosphate deposit in Canada after the soon to be depleted Agrium's Kapuskasing Mine. If you disagree, I would challenge you to show me any other advanced phosphate deposit in canada. I think that Agrium is going to buy FOS because there is serious need to secure the Phosphate Rock feedstock for their Redwater plant. Apart from FOS deposit, there is no other deposit that can provide this rock unless they keep importing it from Morocco to Reewater which seems like a lot of hassle to me since FOS deposit can be mined and shipped via CN or CPR rail straigth to Redwater.
The company is loaded with CASH and so is taking its time to maximize shareholder value in any deal.Then again you have Mosaic whicj could be interested but I think the synergy with Agrium is stronger for Agrium to snap the deposit.
All this Value has Many Asking the Right Questions:
https://minesite.com/media/pub/var/release_downloadable_file/35709.pdf
7Th Feb 2012
PhosCan Chemical own 100% of the Martison carbonatite located
in Ontario, Canada, close to Agrium’s (AGU-TSX/NYSE)
Kapuskasing mine which is due to become depleted by 2014.
Agrium’s Redwater phosphoric acid plant in Alberta is said to be
dependent on Kapuskasing concentrates.
At Martison, PhosCan Chemical have outlined a National
Instrument 43-101 compliant measured and indicated resource, on
Anomaly A only, of 62.2 million tonnes averaging 23.55 % P2O5, and
0.34 % niobium pentoxide (Nb2O5) .
In addition, an inferred resource of 55.7 Mt grading 21.87 % P2O5,
and 0.34 % Nb2O5 has been outlined, but as anomalies A, B and C
cover a total area 28 square kilometres, upside is very evident.
Most drilling has taken place in Anomaly A.
They target a production rate of 2 Mtpa of phosrock, and 4 million
kilograms of niobium from an open pit, truck and shovel operation.
72 % recovery of phosphate, producing a 37 % P2O5 concentrate
has been predicted.
The production of niobium and rare earths from tailings and other
areas of the carbonatite are under evaluation. In 2008, a drill hole
grading 1.66 % Nb2O5, and 1.59 % Light Rare Earth Oxides was
pulled. They are currently conducting a re-sample program to
determine a rare earth resource.
Recent metallurgical testing of phosphate flotation tailings have
resulted in the development of a process which results in the
recovery of more than 40% of the niobium contained in the
tailings, to a pyrochlore concentrate containing 50% to 54% Nb2O5.
Pyrochlore is the principal feedstock for converters that produce
ferro-niobium, the end product of major niobium mines.
At C
.35 per share, PhosCan Chemical is capitalised at just under $55m. At end October 2011, they reported cash and cash equivalents plus short term investments of C$66.185m. During the quarter, they repurchased and cancelled 3.934 million shares at a discount to pro-forma cash and short term investments of 24.7%. They may purchase up to 12 million shares before 17th October 2012.
With a half decent phosrock, niobium and rare earths project thrown in for nothing, PhosCan Chemical appears attractive. Why haven’t they been taken over by Agrium?
I don't Personally think If...its Just when....Bought More shares Last Week at these Rediculous below cash prices