Itafos Receives Advances Totalling US$10,000,000
15 August 2017 - 8:32AM
Itafos (TSX VENTURE:IFOS) (“
Itafos”) announced
today that it has received advances (the
“
Advances”) in the amounts of US$5,000,000 from
Pala Investments Limited (“
Pala”) and US$5,000,000
from Zaff LLC (“
Zaff”). The Advances are evidenced
by unsecured promissory notes that are pre-payable, in whole or in
part, at any time, bear interest at a rate of 15% per year and
mature on January 31, 2018. It is expected that the proceeds of the
Advances, together with available cash, will be used primarily for
the ramp-up of the Itafos Arraias SSP Operations, the continued
implementation of business development initiatives including the
development of the Farim project owned by GB Minerals Ltd. and
general corporate purposes.
Each of Zaff and GB Minerals is a “related
party” to the Company under Multilateral Instrument 61-101
Protection of Minority Security Holders in Special Transactions
(“MI 61-101”). Zaff is a “related party” to the
Company by virtue of its shareholding being in excess of 10% of the
Company’s issued and outstanding share capital and GB Minerals is a
“related party” to the Company as Itafos owns an approximate 31.3%
interest in GB Minerals. Accordingly, the Advance from Zaff and any
investments concerning the development of the Farim project are
“related party transactions” under MI 61-101. The transactions are
exempt from (i) the formal valuation requirements under Section 5.4
of MI 61-101 pursuant to Subsection 5.5(a) of MI 61-101; and (ii)
the minority approval requirements under Section 5.6 of MI 61-101
pursuant to Subsection 5.7(1)(a) of MI 61-101 because the subject
matter of the transactions does not exceed 25% of the Company’s
market capitalization.
About Itafos
Itafos is focused on becoming a significant
integrated producer of phosphate based fertilizers and related
products. Itafos has an experienced team with significant
experience in the business of fertilizer operations, management,
marketing and finance. Itafos owns and operates the Itafos Arraias
SSP Operations, which consists of an integrated fertilizer
producing facility comprised of a phosphate mine, a mill, a
beneficiation plant, a sulphuric acid plant, an SSP plant and a
granulation plant and related infrastructure located in central
Brazil. Itafos’ exploration portfolio includes a number of
additional projects in Brazil, including the Santana Project, a
high-grade phosphate deposit located in close proximity to the
largest fertilizer market of Mato Grosso State and animal feed
market of Pará State, and the Araxá Project, a high-grade rare
earth elements, niobium and phosphate deposit located in close
proximity to two operating mines, therefore benefiting from
existing local infrastructure. In addition, Itafos owns an
approximate 31.3% interest in GB Minerals which owns the Farim
Project, a high-grade phosphate deposit located in Guinea Bissau
and a 100% interest in Stonegate Agricom Ltd. which owns the Paris
Hills Project, a high-grade phosphate deposit located in Idaho,
United States and the Mantaro Project, a high-grade phosphate
deposit located in Peru.
About The Blueshirt Group
The Blueshirt Group provides capital markets
expertise and strategic financial and media relations counsel to
growth companies and venture capital firms globally. Founded in
1999, The Blueshirt Group has earned its reputation as a leader in
investor relations (IR), financial communications, financial media
relations and crisis management.
Forward Looking Statements
This news release contains forward-looking
information (“FLI”) regarding future events or the
future performance of Itafos and its affiliates. Generally, FLI can
be identified by expressions of belief, expectation or intention,
and often contain words such as “anticipates”, “believes”,
“expects”, “estimates”, “intends”, “plans”, “could”, “may”,
“might”, “should”, “would” or variations of such words. FLI is
based on various assumptions, including with respect to operations
at the Itafos Arraias SSP Operations and other projects, technical
feasibility, resources and reserves, mine life, financing sources
and use of funds, growth of Brazilian and global fertilizer
markets, results of operations, performance, business prospects and
opportunities. While Itafos considers these assumptions to be
reasonable based on information currently available, such
assumptions may prove to be incorrect. FLI is subject to various
risks and uncertainties that could cause actual events or results
to differ materially from those projected. These risks and
uncertainties include, but are not limited to, variations from
Itafos’ assumptions regarding the matters mentioned above; the
timing and outcome of current and pending environmental claims or
lawsuits; imprecision in mineral reserves and resources estimates;
changes in the agriculture, energy, fertilizer, financial, raw
material and transportation market conditions; fluctuations in
commodity prices and currency exchange rates; inability to obtain
necessary permits; insurance and uninsured risks; potential
increases in production costs; Itafos’ ability to effectively
integrate any future acquisitions into its business structure;
changes in government policy and in environmental and other
governmental regulation; Itafos’ ability to attract and retain
skilled employees with relevant industry expertise; catastrophic
events such as fires, floods, explosions, release of hazardous
chemicals and seismic events, as well as other risks and
uncertainties reported by Itafos from time to time in its
Management’s Discussion and Analysis filed with the securities
regulatory authorities in Canada and available at www.sedar.com.
FLI should not be read as a guarantee of future events or results.
You are cautioned not to put undue reliance on FLI.
For more information, please visit
http://www.blueshirtgroup.com.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this
release.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Itafos
Brian Zatarain, Chief Executive Officer
brian.zatarain@itafos.com
www.itafos.com
The Blueshirt Group
Gary Dvorchak, CFA
Managing Director
+1 (323) 240-5796
gary@blueshirtgroup.com
Itafos (TSXV:IFOS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Itafos (TSXV:IFOS)
Historical Stock Chart
From Jul 2023 to Jul 2024