SASKATOON, Jan. 31, 2013 /CNW/ - Farmers of North America Inc. ("FNA") announced the successful conclusion of the Series I Seed Capital offering for ProjectN, the project to build a new fertilizer plant begun by FNA Fertilizer Limited Partnership ("FNA FLP").
Stantec, a global leader in engineering, environmental and process engineering, has been engaged by FNA FLP to lead the Bankable Feasibility Study ("BFS") for the proposed nitrogen fertilizer production facility.
ProjectN spokesperson Bob Friesen said that the prospects for farmers to have a controlling interest in the final plant are better than ever.
"The response of FNA members has been beyond expectations, which has allowed us to hire one of the most sophisticated and experienced firms to take the lead on this critical milestone. Now we encourage all farmers to join ProjectN to drive up the number of acres covered and increase the potential capacity of the plant that is taken up by farmers."
The BFS will provide current and prospective project partners and investors with a detailed, third party study on project scope, engineering, capital costs, market structure and pricing, and indicative project returns. The BFS is also a key requirement for securing debt financing for the project.
While the first series of the seed capital offering was targeted at existing FNA members, Series II will be more broadly targeted to farmers who are not FNA members, to bring them into the FNA organization and provide them the opportunity to participate in FNA FLP.
FNA FLP previously announced BMO Capital Markets as its financial advisor on ProjectN.
"With Stantec & BMO Capital Markets we have two of the world's best in their respective fields," Friesen said, adding "A great deal of work has already been done, and the foundation has been laid so that ProjectN is one of the most advanced of the fertilizer plant proposals being put forward by new entrants to the North American fertilizer production market."
"What is absolutely critical is getting as many farmers as possible so we can control a major portion of the production of the new facility."
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
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