Itafos Provides Update on Itafos Farim Engineering and Construction, Announces Termination of EPCM Agreement With Lycopodium
January 24 2020 - 4:25PM
Itafos (TSX VENTURE: IFOS) (the “
Company”) today
provided an update on the engineering and construction of Itafos
Farim and announced the termination of the engineering, procurement
and construction management (“
EPCM”) agreement
with Lycopodium Minerals Canada Limited (Toronto, Canada)
(“
Lycopodium”).
In July 2019, the Company announced an EPCM
agreement with Lycopodium for services related to the development
of Itafos Farim’s mine, which is expected to produce 1.3Mt per year
of phosphate rock, and services related to the on land portion of
Itafos Farim’s port, which is expected to load Itafos Farim’s mine
production for global export. The EPCM agreement with Lycopodium
contemplated two phases; phase one considered preparation of a
definitive cost estimate and schedule and phase two considered
additional detailed engineering, equipment procurement and
construction. Given the revised project financing timeline of
expected lender approval during the first half of 2020, Itafos
Farim suspended the EPCM agreement following completion of phase
one and did not provide notice to proceed for phase two. As a
result, the EPCM agreement was terminated on January 17, 2020.
“The EPCM agreement with Lycopodium was
structured in two phases to provide flexibility with respect to
timing and not commit the Company ahead of project financing. We
will look to enter into a new agreement to cover the expected phase
two activities of detailed engineering, equipment procurement and
construction that aligns the timing of and capital expenditures
associated with such activities with the project financing timeline
of Itafos Farim,” said Dr. Mhamed Ibnabdeljalil, CEO of the
Company.
Also in July 2019, the Company provided an
update on the engineering, procurement and construction
administration agreement with W.F Baird and Associates Ltd.
(Madison, USA) (“Baird”) for services related to
the development of the marine portion of Itafos Farim’s port. To
date, Baird has completed approximately 90% of its detailed design
work. Following an extensive process, the Company has selected
Stefanutti Stocks Coastal (Cape Town, South Africa), a division of
Stefanutti Stocks (Pty) Ltd ("Stefanutti"), as
contractor for the marine portion of Itafos Farim’s port. Baird is
expected to manage Stefanutti for construction of the marine
portion of Itafos Farim’s port with mobilization and construction
expected to commence following completion of project financing.
About Itafos
The Company is a vertically integrated phosphate
fertilizers and specialty products company with an attractive
portfolio of long-term strategic businesses and projects located in
key fertilizer markets worldwide.
The Company owns, operates and is developing the
following businesses and projects:
- Itafos Conda – a vertically
integrated phosphate mine and fertilizer business with production
and sales capacity of approximately 550kt per year of monoammonium
phosphate (“MAP”), MAP with micronutrients
(“MAP+”), superphosphoric acid
(“SPA”), merchant grade phosphoric acid
(“MGA”) and specialty products including ammonium
polyphosphate (“APP”) located in Idaho, US;
- Itafos Arraias – a phosphate
fertilizer business with production and sales capacity of
approximately 500kt per year of single superphosphate
(“SSP”), SSP with micronutrients
(“SSP+”), premium PK compounds and approximately
40kt per year of excess sulfuric acid located in Tocantins,
Brazil;
- Itafos Farim – a high-grade
phosphate mine project located in Farim, Guinea-Bissau;
- Itafos Paris Hills – a high-grade
phosphate mine project located in Idaho, US;
- Itafos Santana – a vertically
integrated high-grade phosphate mine and fertilizer plant project
located in Pará, Brazil;
- Itafos Mantaro – a large phosphate
mine project located in Junin, Peru; and
- Itafos Araxá – a vertically
integrated rare earth elements and niobium mine and extraction
plant project located in Minas Gerais, Brazil.
For more information, or to join the Company’s
mailing list to receive notification of future news releases,
please visit the Company’s website, www.itafos.com.
Forward Looking Information
Certain information contained in this news
release constitutes forward looking information. All information
other than information of historical fact is forward looking
information. The use of any of the words “intend”, “anticipate”,
“plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and similar
expressions are intended to identify forward looking information.
This information involves known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward looking
information. No assurance can be given that this information will
prove to be correct and such forward looking information included
in this news release should not be unduly relied upon.
Forward looking information is subject to a
number of risks and other factors that could cause actual results
and events to vary materially from that anticipated by such forward
looking information. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Factors that may cause actual
results to differ materially from expected results described in
forward-looking statements include, but are not limited to, those
risk factors set out in the Company’s Management Discussion and
Analysis and other disclosure documents available under the
Company’s profile at www.sedar.com. Readers are cautioned that the
foregoing list of risks, uncertainties and assumptions are not
exhaustive. The forward-looking information included in this news
release is expressly qualified by this cautionary statement and is
made as of the date of this news release. The Company undertakes no
obligation to publicly update or revise any forward-looking
information except as required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information, please
contact:
Itafos Investor
Relationsinvestor@itafos.comwww.itafos.com
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