VANCOUVER, BC / ACCESSWIRE / March 28, 2014 / Pan American Fertilizer Corp. (TSX.V: PFE, Frankfurt: 6GF) (the "Company" or "Pan American") explains how the proceeds for its intended private placement will be utilized.
On March 17 the Company announced that it intended to raise $500,000 via a non-brokered private placement.
"The proceeds from this private placement will allow the Company to expand our current fertilizer gypsum base business in Argentina and Paraguay and to start our expansion into Uruguay" said Randy Wright, Pan American's CEO and Vice Chairman.
"The next step in implementing our strategy is to become a fully integrated fertilizer company focused on South American which will include specialty fertilizers and agronomic advice for high cash value and medicinal crops" stated Rob Rennie, Pan American's Executive Chairman.
"These new funds will now allow Pan American to better define the opportunity to be the preferred supplier of specialty fertilizers specifically tailored for various cultivars of medical marijuana" Randy Wright explained. "We will work with the best scientists in Canada and Uruguay together with marijuana producers in Uruguay to ensure that our products best meet our customers' needs" Wright continued.
To further assist Pan American, Mr. Nicholas Konkin of AgriConsultant, will advise Pan American with respect to potential Canadian and Uruguay partners already engaged in the production of medical marijuana. Mr. Konkin has over five years of capital markets experience specifically joint ventures and issuer/project funding.
The current confusion with respect to the new medical marijuana guidelines coming into effect in Canada on April 01, 2014 has no impact on Pan American since we do not currently contemplate being producers of marijuana in the Canadian market.
About Pan American Fertilizer Corp.
Pan American is a Canadian company dedicated to providing fertilizer to growing global markets specifically in South and Central America. The company is focused on the extraction of a specific type of fertilizer called calcium sulphate (also referred to as "Agricultural Gypsum") in Argentina. To ensure long term development and increase shareholder value, Pan American plans to significantly expand its current operational objectives while expanding its asset base by acquiring additional calcium sulphate and other fertilizer related assets and by expanding its markets to countries neighbouring Argentina.
The Calcium Sulphate project is a unique project, for the following reasons:
1) Its high grade calcium sulphate (CaSO4) rock outcrops and is fully permitted and in operations via conventional extraction methods with secured mining rights for 20 years with right to extend for another 20 years, allowing for scalable operations;
2) It is strategically located in close proximity to the well-known "Nucleus Agricultural Zones" of South America where the majority of the continents important and dynamic agribusiness activity is located;
3) It connects to Paraguay and Brazil's largest fertilizer distribution districts via existing and high quality infrastructure;
4) It has the potential to supply CaSO4 to South America's agriculture market from its large calcium sulphate-rich deposit.
When used as a fertilizer and as a soil remediator, calcium sulphate is a soft sulphate mineral composed of calcium sulphate dihydrate (CaSO4o2H2O) which is extremely rich in sulphur and calcium. When dissolved in water, the mineral becomes calcium and sulphate sulphur ions, both of which are required nutrients for plants. Calcium Sulphate plays a vital role in establishing and maintaining good chemical balance in soil, water and plants, specifically with healthy root development. Ultimately, calcium sulphate increases overall crop quality and yields. For more information please look at our website www.PAFertilzer.com
On behalf of the Board of Directors of Pan American Fertilizer Corp.
Vice-Chairman and Chief Executive Officer
Forward Looking Statements
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation), including Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. The words "is expected" or "estimates" or variations of such words and phrases or statements that certain actions, events or results "may" or "could" occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Pan American as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Many of these factors can affect Pan American's actual results and could cause actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Pan American. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future.
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SOURCE: Pan American Fertilizer Corp.