TORONTO, ONTARIO, November 11, 2016, MBAC Fertilizer Corp. (MBAC or the Company)(TSXV:MBC) today provided a regulatory update. As a result of the implementation of the Company’s previously announced recapitalization transaction (the Recapitalization) on October 27, 2016, Zaff LLC holds approximately 50,198,869 common shares of the Company, representing 96.25% of the issued and outstanding common shares (on an undiluted basis). The Company, therefore, does not currently satisfy the 10% public float continued listing requirement (the Public Float Requirement) of the TSX Venture Exchange (TSXV). In connection with the Company’s resumption of trading on the TSXV following implementation of the Recapitalization, the Company has undertaken and the TSXV has afforded the Company until May 8, 2017 to meet the Public Float Requirement. The Company is considering various means of meeting the Public Float Requirement and expects that it will do so before May 2017.
MBAC is focused on becoming a significant integrated producer of phosphate based fertilizers and related products. MBAC has an experienced team with significant experience in the business of fertilizer operations, management, marketing and finance. MBAC owns and operates the Itafós Arraias SSP Operations, which consists of an integrated fertilizer producing facility comprised of a phosphate mine, a mill, a beneficiation plant, a sulphuric acid plant, an SSP plant and a granulation plant and related infrastructure located in central Brazil. MBAC’s exploration portfolio includes a number of additional projects in Brazil, including the Santana Project, 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, and the Araxá Project, a high-grade rare earth elements, niobium and phosphate deposit located in close proximity to two operating mines, therefore benefitting from existing local infrastructure. In addition, MBAC owns an approximate 31.3% indirect interest in GB Minerals Ltd., which owns the Farim Project, a high-grade phosphate deposit located in Guinea Bissau, and an approximate 36.5% indirect interest in Stonegate Agricom Ltd., which owns the Paris Hills Project, a high-grade phosphate deposit located in Idaho, United States of America, and the Mantaro Project, a high-grade phosphate deposit located in Peru.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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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. 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 but are not limited to, 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 plans, objectives and goals and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements.