RICHMOND, Indiana, August 23, 2016 /PRNewswire/ --
South American Gold Corp (OTCBB: SAGD) signed an agreement to become the exclusive South American distributor of Microbial Mojo GoGo, an agreement that the company estimates could easily lead to over one million dollars in new revenue to the company.
Microbial Mojo GoGo is a unique liquid fulvic and humic acid extracted through a patented process. This unique extraction process amplifies the known effectiveness of liquid humic acids on plant growth by leaving the naturally occurring growth hormones intact. The product can deliver a physiological response in plants that can be seen in as little as 30 minutes after foliar application and growth responses that can be seen with the naked eye in as little as 24 hours.
"This agreement is an important step in implementing our strategic plan to become the exclusive distributor of high-value products which have shown the ability to develop high returns on investment to cannabis cultivators throughout South America's growing rapidly expanding market, " said SAGD's CEO, Cynthia Berain.
Uruguay is a member of South America's largest trading block, Mercosur, and geographically sits directly between the trade group's two largest trading partners; Argentina and Brazil.
"While we will launch our distribution efforts in Uruguay, we believe that other countries in the region will continue making moves to further liberalize their cannabis laws," continued Ms. Berain. "By signing this exclusive distribution agreement for all of South America we've positioned ourselves strategically to benefit from this anticipated growth into more populous markets in the region."
South American Gold Corp anticipates distribution of Microbial Mojo GoGo will have a positive impact on Net Income beginning in the first quarter of 2017. "Because of the tremendous opportunity that exists within the legal cannabis space in Uruguay," explained Ms. Berain, "we believe that if we capture just five percent of the legal cannabis market it could lead to annual revenues of well over one million dollars."
The company also announced that it would expand its focus and not solely focus on the cannabis industry. With an estimated 85 percent of Uruguay's land currently being utilized for agriculture, traditional farming operations have tremendous potential for Mojo Gogo product sales. Uruguay has emerged as a leading agriculture country with beef exports topping those of Argentina. Uruguay produces over 1.5 million tons of wheat, over 500,000 tons of maize, over 1 million tons of rice and nearly 2 million tons of soybeans each year. With these impressive agriculture production numbers, South American Gold Corp. is fully aware of the opportunity that Mojo Gogo can offer to that business sector.
"The applications for this product reach far beyond just the cannabis industry as Mojo Gogo product tests have proven that it has huge impact on corn, soybeans, rice and other crops," Ms. Berain stated. "Our sites are much higher, the traditional cannabis operation is very small while a traditional corn or soybean farm is very large and that industry has many more participants. Ultimately our goal is to expand this exclusive agreement to allow us to market this product into the mainstream agricultural space which would exponentially increase our sales, and the revenue and profits would expand accordingly. "
When discussing the opportunities that exist within this distribution agreement, the company pointed to a Trading Economics report that published the World Bank numbers regarding land and agriculture in Uruguay. According to the report, there are more than 36 million acres of arable land in Uruguay. Argentina, the neighbor to the West, has more than 68 million acres of arable land and offers another huge potential for the company for Mojo Gogo product distribution.
"Using an average of $5.00 per acre for fertilizer in Uruguay, the potential annual spending within this sector is more than 150 million dollars. If you add in Argentina, you add another 300 million dollars annually. If we just capture one percent of the broader agricultural market in these two countries alone, it could yield annual revenues that top 5 million dollars."
About SAGD: South American Gold Corp is focused on becoming the premiere provider of value added products and services for the cultivation and processing of legal cannabis for the South American medical and recreational markets with an initial focus on the Uruguayan market.
This release contains forward-looking statements that are based on beliefs of South American Gold Corp. management and reflect South American Gold Corp.'s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of South America Gold Corp. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, South American Gold Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission. This press release incorporates by reference the Company's filings with the SEC including 10K, 10Q, 8K reports and other filings. Investors are encouraged to review all filings. There is no assurance South American Gold Corp. will identify projects of merit or if it will have sufficient financing to implement its business plan. There is no assurance that the Company's due diligence on the potential acquisition of oil and gas assets will be favorable nor that definitive terms can be negotiated. Information in this release includes representations from the private companies referred to which has not been independently verified by the company. A downturn in oil prices would affect the potential profitability of the proposed acquisition negatively.
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SOURCE South American Gold Corp.