MBAC Marks First Production of SSP at Itafós
TORONTO, July 11, 2013 /CNW/ - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC and OTCQX:MBCFF) is pleased to announce that it has begun production of Single Super Phosphate ("SSP") powder at its Itafós Arraias SSP Project ("Itafós" or the "Project"). The production of the SSP powder marks an important milestone as the Company continues its transition from a developer into an integrated producer of fertilizer products in the Brazilian and Latin American markets.
MBAC management expects to be in a position to start delivering granulated SSP product to settle existing contracts later this month. The Company will continue to refine the processes in an effort to improve efficiency of the operations and product quality in the ordinary course of the ramping-up of the operations. The Company expects that it will have reached nominal production during the Autumn of 2013.
The Company remains focused on its sales effort and believes it can accelerate this effort now that it has started to produce SSP powder. Management continues to believe that it will be able to sell into Brazil's upcoming planting season.
MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian and Latin American markets. MBAC has an experienced team with significant 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. Since late 2012, such operations have been phased out as the Company completed the construction of the Itafós Arraias SSP Project. MBAC's exploration portfolio also 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 Grosso 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.
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of applicable Canadian 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 Company's business strategy, objectives and goals; the expectation of Itafós becoming a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian and Latin American markets the expectation in relation to Itafós being completed within the disclosed timeline, the expectation that the Company will be able to improve efficiency in the operations and product quality, the belief that the Company will reach nominal production during the Autumn of 2013, the belief that the Company will be able to sell into this year's planting season. 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 risk factors include, among others, the Company not being successful at becoming a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian and Latin American markets, the expectation in relation to Itafós being completed within the disclosed timeline, the Company not being able to deliver product and settle the existing contracts later this month, the anticipated ability to refine the processes to improve efficiency of the operations and product quality, the Company not being able to reach nominal production by October 2013, the Company's expectation to sell into this year's planting season, 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.