CALGARY, ALBERTA -- (Marketwired) -- 02/01/16 -- Americas Petrogas Inc. (TSX VENTURE: BOE), ("Americas Petrogas" or the "Company") announces that, through its Peruvian subsidiary, the Company has acquired an additional 30% beneficial interest in the Bayovar mineral concessions 5, 6, 7 and 8 (the "Bayovar Concessions") from its Peruvian partner (the "Peruvian Co-venturers"). Consequently, the Company's Peruvian subsidiary now holds a 100% beneficial interest in the Bayovar Concessions. Following this acquisition, the Company's net working interest in the Bayovar Concessions is approximately 89%, after considering the partial shareholding of Indian Farmers Fertiliser Co-operative Limited and its affiliate in GrowMax Agri Corp.
Under the terms of the acquisition agreement with the Peruvian Co-venturers, the acquisition price is US$8.0 million payable over a period of approximately three years as follows:
a. US$500,000 in cash payable by February 1, 2016; b. US$2,000,000 in cash payable following the approval by applicable Peruvian government authorities of the supplemental feasibility study information in respect of the Bayovar Concessions, which approval is expected by May 31, 2016; c. US$1,500,000 in cash, or phosphate rock or any combination of cash and phosphate rock payable not later than thirty (30) days following the earlier of (i) the second anniversary of receipt of approval of the supplemental feasibility study information by applicable Peruvian government authorities; or (ii) the completion of construction and the commencement of continuous commercial production operations from a phosphate pilot plant to be located on the Bayovar Concessions; and d. US$4,000,000 in cash payable not later than thirty (30) days following the achievement of commercial production of phosphate rock from a commercial mine located on the Bayovar Concessions.
In addition, the Company has assumed approximately US$1,240,000 of past costs which the Company funded on behalf of the Peruvian Co-venturers.
Abby Badwi, the Executive Chairman of the Company, commented, "We are pleased to have acquired this additional 30% interest in the Bayovar Concessions which show the potential to be a world scale beneficiated phosphate rock export project. This acquisition results in the Company holding close to a 90% interest in Bayovar which we believe will facilitate the timely and efficient development of the project. Additional details regarding our plans for the Bayovar project will be disclosed at a later date."
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 should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates or 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.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events may 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. In particular, there is no assurance that the supplemental feasibility study will be approved by the applicable Peruvian government authorities, that a phosphate pilot plant or commercial mine will be built or that if built, that there will be commercial quantities of phosphate rock mined or produced. 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.
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Americas Petrogas Inc.
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