CROPS Inc. reported on the status of its 70% owned Bayovar 12 phosphate property located in the Sechura District of northern Peru. In 2016, the Company prepared a pre-feasibility study for the possible production of phosphate rock from the Bayovar project. Shortly thereafter, the market prices for phosphate rock to be sold into the fertilizer industry dropped dramatically well below the price that would justify the development of the Bayovar 12 deposit and the prices remain soft. The Company completed a beneficiation testwork program on phosphate beds from Bayovar, the results of which indicate that the phosphate rock quality would be suitable as the key raw material feed stock in the added-value industrial phosphorus market, specifically to produce elemental phosphorus (P4), a chemical compound used extensively in many sectors. Management then initiated discussions with various large, international consumers and producers of P4. The company were optimistic that these discussions would result in the financing of a feasibility study that would look at the viability of producing P4 at the Bayovar 12 project. While the strong interest expressed by these companies led to this sense of optimism, the talks stalled as the cost of conducting such a study appears to be a major stumbling block and there is little appetite for investing in a development-stage phosphate property. In order to hold the Bayovar 12 concession and the rights to the phosphate rock deposit, the Peru mining agency requires that the Company mine gypsum from the Bayovar property. Revenues from the sale of gypsum, however, have not been covering the cost of production, and the Company has also been paying significant amounts in annual mining taxes and community support. The Board of Directors of the Company has determined that it is in the best interests of the Company and its shareholders to relinquish the Company's rights to the Bayovar 12 project. Management is actively investigating new prospective projects for acquisition by the Company.