MBAC Receives Final Operating License For Itafós Arraias SSP Project
TORONTO, June 28, 2013 /CNW/ - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC and OTCQX:MBCFF) is pleased to announce that it has now received the final operating license (the "Licença de Operação" or the "Operating License") from the Tocantins State Environmental Agency ("Naturatins" or the "Agency") to operate all plants, including the sulphuric acid plant, the SSP plant and the granulation plant at the Itafós Arraias Single Super Phosphate ("SSP") Project ("Itafós" or the "Itafós Project"). The Governor of the Tocantins State, Wilson Siqueira Campos, delivered the Operating License to the Company at an official ceremony held in Palmas, Tocantins this morning. The Brazil Environment Minister, Izabella Teixeira, and the mayor of the city of Arraias, Cacildo Vasconcellos were in also attendance at the ceremony. Roberto Busato Belger, the President and COO of the Company also attended the ceremony on behalf of MBAC.
The issuance of the Operating License by Naturatins represents a significant milestone as it is the final regulatory approval required for Itafós to start operations as an integrated SSP producer.
At the event, Roberto Busato Belger, and the Governor of Tocantins State commented that Arraias is now an important part of a newly organized industrial district as Itafós is the first large scale fertilizer producer of the Cerrado area. Both also emphasized the significance of the large investment made through having Itafós in the region. Itafós is expected to bring significant benefits for local farmers by supplying quality fertilizer with reduced logistics costs as well as to the community it serves with the additional jobs, social programs and infrastructure.
With the issuance of the Operating License which represents the final stamp of approval from the State authorities, the Company believes that the timeline for the Project remains consistent with previously disclosed expectations.
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 and bringing significant benefits to local rural farmers with the supply of quality fertilizer at reduced logistics costs, as well as to the community it serves with the additional jobs, social programs and infrastructure, the expectation in relation to Itafós being completed within the disclosed timeline. 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 anticipated benefits from the Itafós Project to local farmers and the community not being recognized, the expectation in relation to Itafós being completed within the disclosed timeline, 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.