IFC Increases Loan Commitment by US$25 Million Through Syndication Program
TORONTO, Dec. 29, 2011 /PRNewswire/ - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC and OTCQX:MBCFF) is pleased to announce the Company has received a commitment for an additional US$25 million in syndicated project financing from the IFC through its syndicated B Loan program (the "IFC B Loan"), bringing the aggregate IFC project financing facility to US$65 million. The syndicate bank, WestLB AG ("WestLB") has agreed to provide the additional funds through the IFC on substantially the same terms and conditions as the US$40 million project financing being provided directly by IFC, other than a shorter repayment period under the syndicated loan. Disbursement of funds under the loan facility is expected to occur upon the satisfaction of customary conditions of disbursement. The proceeds from the IFC B Loan will be used by MBAC for the development of the Itafós Arraias SSP Project (the "Project").
Antenor Silva, President and CEO of MBAC stated; "We are very pleased to have the support of a global commercial bank such as WestLB on the Itafós Arraias SSP Project. The Company now has all of the capital requirements to fully fund the Itafòs Arraias SSP Project. The project is proceeding as planned with an expected start up scheduled for Q4 2012."
WestLB AG is one of Germany´s leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, corporate and structured finance, capital market and private equity products and transaction services. WestLB has total assets of €160.4 billion, as of June 30, 2011. For more information, please visit www.westlb.com.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, IFC helped its clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.
MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizers in the Brazilian and Latin American markets. MBAC has an experienced team with over 150 years of combined experience in the business of fertilizer operations, management, marketing and finance within Brazil. In October 2008, MBAC acquired Itafós Mineração Ltda, which consisted of a phosphate mine, a mill and plant and related infrastructure, all located in central Brazil. MBAC's exploration portfolio includes a number of additional exciting phosphate and potash projects, which are also located in Brazil. The Santana Phosphate project is a high grade phosphate deposit located in close proximity to the largest fertilizer market of Mato Gross State and animal feed market of Pará State. The Company continues to search for additional fertilizer opportunities in the Brazilian and other Latin-American markets, where strong agricultural fundamentals and unique opportunities are expected to provide attractive growth opportunities in the near future. Further information on MBAC can be found on the Company's website at www.mbacfert.com and on SEDAR at www.sedar.com.
President & Chief Executive Officer
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Forward-looking statements include, but are not limited to, statements related to activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements related to the satisfaction of all conditions and the disbursement of funds under the IFC loan facility, the start up of production in early Q4 2012, and expectations with respect to commencement of commercial production. Forward-looking statements are often identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable at the time such statements are made, and forward-looking statements involve known and unknown risks, uncertainties and other factors may cause the actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors include, among others, the success of the Company in satisfying all conditions of the IFC loan facility and the Itau BBA S.A. loan facility, successful completion of all work to enable Project start up by Q4 2012, as well as those factors disclosed in the Company's current Annual Information Form and Management's Discussion and Analysis, as well as other public disclosure documents, available on SEDAR at www.sedar.com. Although MBAC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. The forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the Company's plan, objectives and goals and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE MBAC Fertilizer Corp.