BIFOX ENTERS INTO AGREEMENTS TO ACQUIRE THE 550 MILLION TONNE BAYOVAR 9 PHOSPHATE ROCK PROJECT IN PERU POSITIONING BIFOX TO BECOME ONE OF THE LEADING GLOBAL PHOSPHATE ROCK SUPPLIERS

Bifox Limited has announced its entry into a strategic acquisition agreement with Fossal S.A.A to enhance its position in the phosphate mining sector. The deal, valued at $60 million, includes an initial payment of $10 million for 16.667% of the shares of Fosfatos del Pacífico S.A. (Fospac), alongside a call option to acquire the remaining 83.333% for $50 million. This transaction, finalized on June 15, 2026, centers around the Bayovar 9 phosphate rock project located in northern Peru, a significant asset with a resource estimate of 550 million tonnes.

Fospac holds the mining rights to the Bayovar 9 project, strategically situated near existing infrastructure, including ports and roads, facilitating export capabilities to the United States, Latin America, and Asia. The project is adjacent to a 4.8 million tonne per annum phosphate rock operation owned by Mosaic Inc. and Mitsui & Co., underscoring the area's potential for phosphate production. The acquisition aligns with Bifox's broader strategy to become a leading supplier of phosphate rock, particularly as global demand for fertilizers and critical minerals continues to rise.

The global phosphate market is experiencing a supply-demand imbalance, with forecasts indicating a potential shortfall in key producing regions. This situation is driven by increasing fertilizer usage in agriculture and the growing demand for lithium iron phosphate (LFP) batteries. The U.S., Europe, and several other countries have classified phosphate as a critical mineral, emphasizing its importance in food production and energy storage technologies. Bifox's plans to develop the Bayovar 9 project to produce between 2.5 and 5 million tonnes of phosphate rock annually position the company to capitalize on this market trend.

Bifox's acquisition of the Bayovar 9 project represents a culmination of a three-year strategy to expand its phosphate resource footprint in Latin America. The company aims to leverage this resource base to develop downstream agribusiness fertilizer products and establish strategic partnerships for LFP battery supply chains. The anticipated mine life of 20 to 30 years and the project's favorable location in a pro-mining jurisdiction further enhance its attractiveness.

In conclusion, this acquisition not only strengthens Bifox's asset portfolio but also reflects broader trends in the mining sector, where companies are increasingly focused on securing critical mineral resources to meet rising global demand. As the market evolves, Bifox's strategic positioning within the phosphate sector may provide significant opportunities for growth and expansion, particularly in the context of increasing agricultural and industrial needs across key global markets.