TORONTO, Oct. 30, 2017 /CNW/ - Itafos (TSX VENTURE: IFOS)
("Itafos") announced today it has received advances (the
"Advances") in the aggregate amount of US$14,250,000. The Advances, together with
advances previously received by Itafos in August, September and
October 2017, are evidenced by
unsecured promissory notes issued by Itafos in favor of Zaff LLC
("Zaff"), in the principal amount of US$10,000,000, Pala Investments Limited, in the
principal amount of US$7,368,000, and
four (4) funds managed by Ice Canyon, a global investment
management firm, in the aggregate principal amount of US$15,000,000. The unsecured promissory notes are
pre-payable, in whole or in part, at any time, contemplate an
interest 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 continued ramp-up of the Itafos Arraias SSP
Operations, implementation of business development initiatives and
general corporate purposes.
Zaff is a "related party" to Itafos under Multilateral
Instrument 61-101 Protection of Minority Security Holders in
Special Transactions ("MI 61-101") by virtue of its
shareholding being in excess of 10% of Itafos' issued and
outstanding share capital. Accordingly, the unsecured promissory
note issued to Zaff constitutes a "related party transaction" under
MI 61-101. The transaction is 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 either Subsection
5.7(1)(a) or Subsection 5.7(1)(f) of MI 61-101.
About Itafos
Itafos is an integrated producer of phosphate based fertilizers
and related products with near term production and an attractive
portfolio of long-term strategic assets. Itafos is managed by an
experienced and diverse team with extensive commercial, financial,
legal and technical expertise. Itafos owns the Itafos Arraias
500,000 ton per year Single Super Phosphate (SSP) Operations, which
consists of an integrated fertilizer production 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' development portfolio includes
a number of additional projects in Brazil, including the Santana Project, a
high-grade phosphate mine project located Mato Grosso State and the
Araxá Project, a high-grade rare earth elements, niobium and
phosphate mine project located in Pará State. In addition,
Itafos owns the Paris Hills Project, a high-grade phosphate mine
project located in Idaho,
United States, the Mantaro
Project, a high-grade phosphate mine project located in Junin,
Peru and an approximate 31.3%
interest in GB Minerals Ltd. which owns the Farim Project, a
high-grade phosphate mine project located in Farim, Guinea Bissau.
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.
SOURCE Itafos
