Possible Action Relating to Aguia Subsidiary
April 15, 2013 (Source: Aguia Resources) — The Board of Aguia Resources Limited (ASX: AGR) (“Aguia” or “Company”) has become aware over the weekend of a potential legal action involving its Brazilian subsidiary Potassio do Atlantico Ltda (PAL) in relation to a disagreement relating to termination of a drill contract.
To date, neither the Company nor PAL has been served with any documentation or court notices and hence is not aware of the actual details of the allegations, nor the claim amount. The Company is advising the market of this matter, as it has been noted on a public database in Brazil. It is the understanding of the Company that PAL may be served with formal documentation in 1 to 2 weeks.
Get our daily investorintel update
The possible legal action may relate to a disagreement relating to a contract with drilling contractors for drilling services that were completed over 12 months ago in the first half of 2012 on some of its Potash assets.
The Company believes it has acted appropriately and is not in breach of the contract. The Company will update the market when further information, being the receipt of any formal documentation, comes to hand.
Aguia is an emerging fertiliser development company focusing on phosphate and potash projects in Brazil. Brazil is Latin America’s biggest economy and is heavily reliant on imports of up to 50 per cent of its phosphate and 90 per cent of its potash needs. Aguia is well positioned to capitalise on the growing demand for phosphorus and potash based fertilisers in the expanding agriculture sector in Brazil and controls four large projects, located close to existing infrastructure. The Company is committed to its existing projects whilst continuing to pursue other opportunities within the fertiliser sector.
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.