SASKATOON, Oct. 2, 2012 /CNW/ - FNA Fertilizer Limited Partnership (FNA FLP) today announced that it has retained BMO Capital Markets as its strategic advisor in the development of a project to establish a fertilizer plant, and to assist in obtaining the necessary strategic partner(s) to take the project to the next level.
FNA FLP recently announced it is proceeding with a plan to build a nitrogen fertilizer plant, and interest from farmers is growing quickly. Based on this demand, the work on developing an equity investment package for farmers is accelerating.
"We are very pleased to be working with BMO on this project," stated FNA FLP spokesperson Bob Friesen. "They have a strong track record with projects of this nature and the fertilizer sector, and we believe they understand our goal of maximizing farmer participation."
The involvement of farmers in the project is key to its success, as it is expected that farmer investment in the plant will include a level of off-take commitment for the nitrogen fertilizer it produces. This direct link between the nitrogen fertilizer produced and the end-user grower brings to the project strong farmer ownership, a stable base of predictable customers for the plant and some security of supply for the farmers involved.
Also important will be choosing the right plant operator. "FNA FLP is not an expert operator, and that will be an important piece of the puzzle. With a great deal of experience in similar projects, BMO will help us find the right partner on the right terms," Friesen said. The project is expected to move into a farmer equity investment phase in the coming months.
See original FNA FLP announcement:
Farmers of North America is a farmers' business alliance with the mission of "Improving Farm Profitability."
FNA Fertilizer Limited Partnership is a separate legal entity designed to align farmers together to build a fertilizer plant.
SOURCE: Farmers of North America
For further information:
Cathi O'Neill, FNA & FNA FLP Media Co-ordinator | (306) 665-4537
Bob Friesen, FNA FLP Spokesperson & FNA VP Government Affairs | (613) 230-2222 / (613) 852-9711 | www.ProjectN.ca