Feb. 10, 2010 (Marketwire Canada) -- CALGARY, ALBERTA--(Marketwire - Feb. 10, 2010) -
Americas Petrogas Inc. ("Americas Petrogas") (TSX VENTURE:BOE) is pleased to announce that its subsidiary, GrowMax Agri Corp. ("GrowMax"), has completed an additional equity financing to bring its total to US$10 million. The most recent investment of US$0.5 million, along with the US$9.5 million raised in mid-December 2009, was made by the Indian Farmers Fertiliser Co-Operative Limited group of companies ("IFFCO"). In return for the investment, GrowMax will issue a total of 10 million common shares at US$1.00 per share. IFFCO will have a representative on GrowMax's board of directors. GrowMax will use the funds for its potash brine project in Bayovar, Peru.
As a result of this financing, GrowMax now has 50 million common shares outstanding, of which Americas owns 40 million or 80% and IFFCO owns 20%. GrowMax owns 100% of Americas Potash Peru S.A., the company within which its Bayovar potash brine project is being developed.
In addition to IFFCO's direct investment in GrowMax, IFFCO is also a significant and strategic investor of Americas Petrogas Inc., having made a $4.5 million investment late in 2009.
Speaking about IFFCO's investment in GrowMax, Dr. U.S. Awasthi, Managing Director of IFFCO said, "This should be an extraordinarily unique potash project, involving relatively low risk and low capital expenditures combined with an ideal region for low-cost solar evaporation processing."
Dr. Awasthi went on to say, "When we received the opportunity to make an investment in Americas Petrogas, we quickly grabbed it because oil and gas projects are the areas of business that we have been considering for a very long time."
Barclay Hambrook, President and CEO of Americas Petrogas, said, "We are very pleased to have established a strong business relationship with a fertilizer-industry leader like IFFCO and to have them join us in GrowMax as it demonstrates the strong investment fundamentals of our Bayovar project."
Mr. Hambrook went on to say, "In establishing this relationship with IFFCO, GrowMax may also expand beyond Peru by considering projects and related business opportunities in other countries."
IFFCO is the world's largest manufacturer and marketer of fertilizer in the cooperative sector and is India's largest fertilizer enterprise, with over 50 million farmers associated with it. IFFCO is primarily engaged in production and distribution of nitrogenous and phosphatic fertilizers. IFFCO has five state-of-the-art fertilizer plants in India with a domestic annual production capacity of 4.3 million tonnes of phosphatic fertilizer and 4.2 million tones of nitrogenous fertilizers. Prior to this investment in GrowMax, IFFCO has made strategic investments in other countries such as Australia, Oman, Senegal and Jordan. More details about IFFCO are available on its website www.iffco.nic.in
Highlights of GrowMax's Bayovar potash brine project are as follows:
-- Solar Evaporation Processing -- GrowMax's Bayovar potash brine project
will utilize solar evaporation processing of mineral rich brines, given
its unique location 6 degrees south of the equator in the Sechura Desert
on the Pacific Ocean. This location provides the ideal amount of sun and
wind for solar evaporation processing.
-- Historical Data -- Historical work on the concession included
substantial drilling and coring of wells, sampling, geological mapping
and construction of a pilot plant utilizing solar evaporation processing
which resulted in the production of high quality potassium chloride
(i.e. potash fertilizer).
-- Low Risk and Low Cost -- Relative to other potash projects, Americas
believes that its surface brine potash project will involve low
operating costs and low capital investment, given that it will apply
solar evaporation processing and its proximity to infrastructure
including paved roads, fresh water, power, gas and port facilities.
-- Experienced Team -- GrowMax has assembled a seasoned team of
professionals with experience in reserves evaluation, mineral recovery
including recovery of potash applying solar evaporation processing of
brines, chemical analysis of brines, and engineering and construction of
solar processing facilities.
-- Research Lab -- GrowMax has established an office and research lab in
Piura, Peru, which is 20 km from its potash concession.
-- Accessible Markets -- GrowMax's proposed potash plant will serve
fertilizer market demand within Peru and in surrounding countries such
as Ecuador, Colombia, and Brazil and has 2 nearby ports for export to
markets such as India and China.
-- Secure Surface Rights -- The mineral and surface rights within the
202,000 acre (82,000 hectare or 820 sq. km.) concession have already
-- Low Carbon Footprint -- The solar evaporation process involves a low
-- Engaged to prepare 43-101 report -- Ercosplan, a German-based
consultant, has been engaged to complete a reserve report that is
compliant with National Instrument 43-101.
Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.
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