VANCOUVER, B.C., CANADA / ACCESSWIRE / April 14, 2014 / Pan American Fertilizer Corp. (TSX.V: PFE, Frankfurt: 6GF) (the "Company" or "Pan American") is pleased to announce that further to its news release of April 3, 2014 it has closed the non-brokered private placement of units (the "Offering") for gross proceeds of $780,500.
The closing consisted of 7,805,000 units (the "Units") at a price of $0.10 per Unit. Each Unit consists of one common share in the capital of the Company (a "Share") and one-half of a share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Share at a price of $0.15 per Share until April 11, 2016.
In connection with the Offering, the Company has paid an aggregate cash commission of $42,200, being 8% of the aggregate proceeds from the sale of Units to purchasers introduced by certain arm's-length finders. The Company has also issued warrants (the "Finder's Warrants") to acquire a total of 422,000 Shares, being 8% of the number of Units sold under the Offering to purchasers introduced by such finders. Each Finder's Warrant entitles the holder to purchase one Share at a price of $0.15 per Share until April 11, 2016.
All securities issued under the Offering are subject to a statutory hold period ending on August 12, 2014 in accordance with applicable Canadian securities laws.
The net proceeds of the Offering will be used to expand the Company's current fertilizer base business in Argentina and Paraguay, to expand into Uruguay and to fast track the Company's strategy to become a supplier of high value-added fertilizers specifically tailored for specialty and medicinal crops.
As part of our commitment to providing safe and organic soil inputs to our commercial farmers, Pan American will donate $20,000 NORML Canada.
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
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Pan American Fertilizer Corp.