Itafos Announces Closing of US$20,000,000 Secured Working Capital Facility at Itafos Conda and Expanded Commercial Relationsh...
October 31 2019 - 6:00PM
Itafos (TSX VENTURE: IFOS) (the “
Company”)
announced today that Itafos Conda has closed a US$20,000,000
secured working capital facility (the “
Revolving
Facility”) and has expanded its commercial
relationship with Gavilon Fertilizer, LLC
(“
Gavilon”), a subsidiary of The Gavilon Group,
LLC.
“This strategic transaction allows us to more
effectively manage our working capital and bolsters our
long-standing partnership with Gavilon,” said Tim Vedder, General
Manager of Itafos Conda.
The Revolving Facility considers an initial
tranche of US$10,000,000 drawn at closing with an option, subject
to certain terms and conditions, to commit up to an additional
US$10,000,000. The proceeds of the Revolving Facility will be used
for working capital and other general purposes of Itafos Conda. The
Revolving Facility matures in two years and accrues interest at 8%
per annum for any amounts outstanding and has a non-use fee of 4%
per annum for any undrawn committed amounts. The Revolving Facility
will be secured by certain accounts receivable and inventory of
Itafos Conda.
In connection with the closing of the Revolving
Facility, Itafos Conda has expanded its commercial relationship
with Gavilon, including supply of additional fertilizer product to
Gavilon over the term of the Revolving Facility.
About Itafos
The Company is a vertically integrated phosphate
fertilizers and specialty products company with an attractive
portfolio of long-term strategic businesses and projects located in
key fertilizer markets worldwide.
The Company owns, operates and is developing the
following businesses and projects:
- Itafos Conda – a vertically
integrated phosphate mine and fertilizer business with production
and sales capacity of approximately 550kt per year of monoammonium
phosphate (“MAP”), MAP with micronutrients
(“MAP+”), superphosphoric acid
(“SPA”), merchant grade phosphoric acid
(“MGA”) and specialty products including ammonium
polyphosphate (“APP”) located in Idaho, US;
- Itafos Arraias – a phosphate
fertilizer business with production and sales capacity of
approximately 500kt per year of single superphosphate
(“SSP”), SSP with micronutrients
(“SSP+”), premium PK compounds and approximately
40kt per year of excess sulfuric acid located in Tocantins,
Brazil;
- Itafos Paris Hills – a high-grade
phosphate mine project located in Idaho, US;
- Itafos Farim – a high-grade
phosphate mine project located in Farim, Guinea-Bissau;
- Itafos Santana – a vertically
integrated high-grade phosphate mine and fertilizer plant project
located in Pará, Brazil;
- Itafos Mantaro – a large phosphate
mine project located in Junin, Peru; and
- Itafos Araxá – a vertically
integrated rare earth elements and niobium mine and extraction
plant project located in Minas Gerais, Brazil.
For more information, or to join the Company’s
mailing list to receive notification of future press releases,
please visit the Company’s website, www.itafos.com.
About The Gavilon Group,
LLC
The Gavilon Group, LLC connects producers and
consumers of agricultural products and feed ingredients through its
global supply chain network. The company provides origination,
storage and handling, transportation and logistics, marketing and
distribution, and risk management services to customers and
suppliers across the globe. The Gavilon Group, LLC, a wholly owned
subsidiary of Marubeni Corporation, employs more than 1,900 people
at nearly 300 facilities and offices worldwide.
Forward Looking Information
Certain information contained in this news
release constitutes forward looking information. All information
other than information of historical fact is forward looking
information. The use of any of the words “intend”, “anticipate”,
“plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and similar
expressions are intended to identify forward looking information.
This information involves known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward looking
information. No assurance can be given that this information will
prove to be correct and such forward looking information included
in this news release should not be unduly relied upon.
Forward looking information is subject to a
number of risks and other factors that could cause actual results
and events to vary materially from that anticipated by such forward
looking information. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Factors that may cause actual
results to differ materially from expected results described in
forward-looking statements include, but are not limited to, those
risk factors set out in the Company’s Management Discussion and
Analysis and other disclosure documents available under the
Company’s profile at www.sedar.com. Readers are cautioned that the
foregoing list of risks, uncertainties and assumptions are not
exhaustive. The forward-looking information included in this news
release is expressly qualified by this cautionary statement and is
made as of the date of this news release. Itafos undertakes no
obligation to publicly update or revise any forward-looking
information except as required by applicable securities laws.
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 THIS RELEASE.
For further information, please
contact:
Itafos Investor
Relationsinvestor@itafos.comwww.itafos.com
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