News -Dusolo purchases fertilizer facility and acquire mills December 17, 2014 09:30 ET
DuSolo Signs Purchase Agreement for Natural Fertilizer Facility
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 17, 2014) - DuSolo Fertilizers Inc., (TSX VENTURE:DSF)(PINKSHEETS:ELGSF)(FRANKFURT:E6R) ("DuSolo" or "the Company") is pleased to announce that it has entered into an agreement ("the Purchase Agreement") whereby DuSolo will acquire 100% ownership in the Direct Application Natural Fertilizer ("DANF") facility ("the Facility") currently under lease and in operation at the Bomfim Project. Furthermore, the Company is pleased to announce it has acquired an additional three (3) hammer mills as part of its plan of increasing production capacity from 80,000 to 160,000 metric tonnes per year ("MTPY") by March 2015.
PURCHASE AGREEMENT TERMS
On August 11th, 2014 the Company announced having entered into an agreement ("the Lease Agreement") that secured the Facility's operation for a term of one (1) year with an option to renew the lease for an additional year thereafter. Under the terms of the newly signed Purchase Agreement, DuSolo made a payment in the amount of R$ 400,000 (approximately $173,936 Cnd. based on the December 16th, 2014 exchange rate) in exchange for 100% interest in the Facilty effective December 16th, 2014 as per the Purchase Agreement signed on December 12th, 2014.
This recent decision to purchase the Facility comes as a result of a successful test run over the last two months in which DuSolo managed to process in excess of 3,400 tonnes of high quality DANF product without any complications.
DANF FACILITY UPGRADES
As part of the Company's strategy to ramp up production capacity of its now wholly owned Facility from the current 80,000 MTPY to 160,000 MTPY, DuSolo has completed acquisistion of an additional three (3) new hammer mills (Model Number MM304 "CD") on December 12th, 2014. The order placed with the supplier "Piacentini Equipamentos para Mineração" includes all necessary parts for installation and operation and is scheduled for delivery by March 10th, 2015. DuSolo is now actively sourcing quotes from various Brazilian based engineering companies to assist with installation of the new equipment.
"The acquisition of the Facility and additional equipment at a highly competitive price and just ahead of the next planting season will enable DuSolo to deliver on its stated objective to produce and sell 160,000 tonnes of DANF product in 2015" commented Eran Friedlander President and CEO of DuSolo.
ABOUT THE COMPANY
DuSolo Fertilizers Inc. (TSX VENTURE:DSF)(PINKSHEETS:ELGSF)(FRANKFURT:E6R) is a Canadian based, low-cost phosphate producer operating in the world's fastest growing agricultural district - the Brazilian "Cerrado" where demand for fertilizers far exceeds domestic supply.
On behalf of the Board of Directors
DuSolo Fertilizers Inc.
Eran Friedlander, President