Keras Resources PLC has announced the expansion of its US operations through a 50:50 Joint Venture Agreement between its subsidiary, Falcon Isle Resources Corp, and Phosul LLC, a specialized organic soil enhancement fertilizer company. The agreement includes the construction and commissioning of a 5tph granulator plant, funded by Phosul, to produce a PhoSul® granulate. Additionally, the company has agreed to acquire an 8.4-acre property with 77,000 square feet of warehouse infrastructure in Sutherland, Utah, to facilitate the significant expansion in processing capacity.

The Joint Venture entails Phosul providing a zero-interest-bearing loan of USD270,000 to Falcon Isle Resources Corp for the construction and commissioning of the granulator plant. All operating expenses for the JV will be shared 50:50, and Falcon Isle Resources Corp will sell 50 mesh rock phosphate to the JV, estimated to be 11,000 tons per annum at steady state continuous operations. The commissioning of the granulator plant is expected towards the end of April 2024, with steady state planned for the second half of the year.

The acquisition of the 8.4-acre Delta Facility for USD700,000 from Western Ag Credit, a Utah-based agriculture financial institution, will provide significantly larger undercover storage and operating area, limiting operational risk. The property has existing water supply, access to a weighbridge with scale house, and initial single-phase power, with 3-phase supply accessible 0.75 miles from the property. The rural location, with Agricultural Industrial zoning and a Conditional Use Permit already approved, allows for 24-hour operation, significantly increasing the effective operating capacities of all the company's plant operations.

The acquisition is being funded by loans from The Diane H. Grosso Credit Shelter Trust, comprising a 4-year convertible loan note of GBP 300,000 and a 4-year Promissory Note of USD 350,000, secured by the Property. The transition from Spanish Fork to Delta is expected to be completed around the end of April 2024.

This news includes a related party transaction, as The Diane H. Grosso Credit Shelter Trust is an associate of Christopher Grosso, a substantial shareholder of Keras Resources PLC.