MBAC Fertilizer Reaches Record Daily SSP Production at Its Itafós Operations
September 17, 2014 (Source: Marketwired) — MBAC Fertilizer Corp. (“MBAC” or the “Company”) (TSX: MBC) (OTCQX: MBCFF)today announced that it reached a new daily record production total of 1,700 tonnes of single super phosphate fertilizer at its Itafós operations in Brazil. In addition to establishing a new daily record, the 1,700 tonne total exceeds the daily expected production amount that Itafós was initially designed for.
“Our production ramp up at Itafós is clearly advancing in the right, positive direction,” said Cristiano Melcher, President and CEO of MBAC Fertilizer. “Our progress since we resumed continuous operations in early September gives us confidence that we should reach commercial production in the coming weeks.”
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Production in the first half of September reached 9,165 tons of SSP and 6,488 tons of sulphuric acid in the period. Excluding the four days of lost production caused by the restocking of raw materials and spare parts, average daily production reached 833 t /day.
Consistent with recent guidance, the Company expects to achieve commercial production in the coming weeks. Commercial production rate is equivalent to a monthly production volume of 25,000 tons of SSP or approximately 60% of nominal capacity.
MBAC also announced that in tandem with its production ramp up it continues to explore financing arrangements, including the sale of non-core assets and other strategic short and long term alternatives that will enable the Company to continue and accelerate the ramp up at Itafós.
MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian market. MBAC has an experienced team with significant experience in the business of fertilizer operations, management, marketing and finance within Brazil. In October 2008, MBAC acquired Itafós Mineração Ltda., which consisted of a phosphate mine, a mill and plant and related infrastructure, all located in central Brazil. Since late 2012, such operations have been phased out as the Company completed the construction of the Itafós Arraias SSP Project. The Santana Phosphate project is a high grade phosphate deposit located in close proximity to the largest fertilizer market of Mato Grosso State and animal feed market of Pará State. Further information on MBAC can be found on the Company’s website at www.mbacfert.com and on SEDAR at www.sedar.com.
FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements related to activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements related to the Company’s business strategy, objectives and goals; the expectation of Itafós becoming a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian market; the Company evaluating all strategic options including pursuing additional financing options; the expectation that it will ramp up operations and reach commercial production of 25,000 tonnes of SSP per month in the coming weeks; that costs will be streamlined and that MBAC will be positioned as the phosphate supplier of choice in the Brazil’s agricultural heartland . Forward-looking statements are often identified by the use of words such as “plans”, “planning”, “planned”, “expects” or “looking forward”, “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”, “anticipates”, “does not anticipate”, or “belief”, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable at the time such statements are made, and forward-looking statements involve known and unknown risks, uncertainties and other factors may cause the actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risk factors include, among others, the Company not being successful at becoming a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian markets; the risk that the Company may not be successful in securing additional financing; the risk of not completing the ramp up of operations and reaching commercial production of 25,000 tonnes of SSP per month in the coming weeks; the risk that costs may not be streamlined and that MBAC may not be positioned as the phosphate supplier of choice in the Brazil’s agricultural heartland, as well as those factors disclosed in the Company’s current Annual Information Form and Management’s Discussion and Analysis, as well as other public disclosure documents, available on SEDAR at www.sedar.com. Although MBAC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. The forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the Company’s plan, objectives and goals and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements.
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