Jun. 23, 2011 (Marketwire Canada) --
CALGARY, ALBERTA -- Americas Petrogas Inc. ("Americas" or the "Company") (TSX VENTURE:BOE) is pleased to announce that its subsidiary, GrowMax Agri Corp., which is owned 80% by Americas and 20% by the Indian Farmers Fertiliser Co-operative Limited ("IFFCO") and its subsidiary, Kisan International Trading FZE ("KIT") (collectively, the "IFFCO Group"), has signed a potash offtake agreement with KIT. The potash offtake agreement involves GrowMax Agri Corp. and its subsidiary, Americas Potash Peru S.A., selling to the IFFCO Group up to 50% of the future potash production from the Bayovar Project located in the Sechura desert in northwestern Peru.
The key terms and conditions of the potash offtake agreement include: (a) selling up to 50% of future potash production from the Bayovar project to the IFFCO Group; (b) a contract term of 15 years from the commencement date of commercial production from the Bayovar Project; and (c) potash price to be paid to Americas will be based on prevailing potash market price (India delivery) subject to a discount towards offtake obligations.
The IFFCO Group owns approximately 15% of the common shares of Americas and is the largest fertilizer enterprise in India.
Speaking about this latest development, Barclay Hambrook, President and CEO of Americas stated "We are extremely proud to be associated with the IFFCO Group and excited about our ongoing financial and operational relationship as demonstrated by this offtake agreement. This agreement provides Americas the opportunity to sell a significant portion of GrowMax's potash production to a large, stable customer at competitive, world prices."
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 tonnes 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.
About GrowMax Agri Corp.
GrowMax Agri Corp., a subsidiary of Americas Petrogas Inc., is developing a surface potash (KCl or Muriate of Potash) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Additional mineral potential includes Phosphate, Bromine and others. For more information about GrowMax Agri Corp., please visit www.growmaxagricorp.com.
About Americas Petrogas Inc.
Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has oil and gas interests in 16 blocks involving exploration, development and production. Americas Petrogas has proven conventional oil and gas reserves, as well as evolving unconventional resource plays including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen basin. For more information about Americas Petrogas, please visit www.americaspetrogas.com.
About Vaca Muerta Shales
The Vaca Muerta Shale is one of two principal source rocks in the Neuquen Basin of Argentina. The shale is late Jurassic-early Cretaceous in age, covers an area of approximately 8500 square miles, varies in depth between 5,500 to 14,000 feet and in places is up to 2,000 feet in thickness.
The Vaca Muerta characteristics are similar to shale reservoirs such as the Eagle Ford, Haynesville and Horn River in North America which have so far resulted in discoveries of both shale gas and shale oil. The shale has recently become the focus for many of the important shale gas players in North America, including Apache, Exxon Mobil, Total as well as YPF in Argentina.
Forward Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown 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.
In particular, statements (express or implied) contained herein regarding the future production and sale of potash, the actual contract term and the pricing, the building of a potash and specialty fertilizer company, oil and gas reserves, conventional and unconventional resources, the area, location and depth of Vaca Muerta shales, should all be viewed as forward looking statements.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
Americas Petrogas Inc.
President and CEO