Balamara, Minemakers sign MOU

Subiaco-based Balamara Resources has secured listed West Perth phosphate company Minemakers and Indian fertiliser producer Deepak Fertilisers and Petrochemicals Corporation as strategic partners in its consortium for the Togo Phosphate Project in West Africa.

Balamara announced today it had signed separate Memorandums of Understanding with Minemakers and DFPCL in its bid to persuade the Togo government it should be awarded the rights to the two-billion tonne phosphate deposit.

The tender requirement demands one party to develop the project and separate party to undertake downstream beneficiation on upgraded rock phosphate to produce phosphoric acid and ultimately fertiliser products.

“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,” Balamara managing director Mike Ralston said.

The contract for the project is expected to be awarded in the coming months.

Minemakers was listed on the Australian Stock Exchange in 2006, and owns 100 per cent of the 1.5 billion tonne Wonarah Phosphate Project in the Northern Territory.

It recently sold its interest in the Sandpiper and Rocky Point phosphate projects in Namibia after an ongoing spat with joint venture partner UCL Resources.

“Wonarah is and will remain our priority but we see it as our ongoing obligation to shareholders to remain vigilant to emerging value enhancing opportunities should they present,” Minemakers managing director Cliff Lawrenson said.

“The Togolese project appears to be an excellent candidate for the company’s involvement and it is one of several opportunities currently being evaluated.”

Shares in Balamara soared by more than 20 per cent to just over 10 cents at 10:15am WST, while shares in Minemakers were down three per cent.