Fengro Announces Transaction to Sell Brazilian Assets
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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
FENGRO ANNOUNCES TRANSACTION TO SELL BRAZILIAN
ASSETS
June 24, 2019 - VANCOUVER, BRITISH COLUMBIA: FENGRO Industries Corp.
(TSX-V:FGR) (“FENGRO” or “the Company”) today announced that it has agreed
to a transaction with Geofoscal Comércio, Indústria, Representações e
Transporte de Produtos Agropecuários Ltda. ( “Geofoscal”) to acquire the
Brazilian assets of the Company. The transaction includes the a ssumption of the
Company’s Brazilian working capi tal liabilities, accounts payab le and a cash
payment to Fengro of R$1,000,000 (c.C$350,000). The Company’s B oard of
Directors unanimously approved the transaction, which remains s ubject to
shareholder and regulatory approval.
The Company had undertaken a review of the alternative sources of financing its
working capital and capital investment requirements, as well re viewing a number of
opportunities with agricultural industry counterparts, includin g public and private
entities over the last twelve months. Access to the traditional equity capital markets
was unavailable, and the Company has been reducing costs and managing its cash
position whilst concluding the review and a corporate transacti on. To continue
growth, capital investment was required, as well as a need to e liminate the working
capital deficit.
The Geofoscal transaction was the most realistic in terms of bo th financing and
timing, given the inability of the Company to raise additional equity or other capital,
and the need to eliminate the Company’s Brazilian liabilities.
Change of Chief Financial Officer
The Company also wishes to announce the departure of the Compan y’s Chief
Financial Officer, Alastair Brownlow, who has been replaced by Peter Ruxton, a non-
executive director, until a permanent replacement can be found. The Company and
Board thanks Alastair for all his hard work and wish him well in his next endeavour.
About FENGRO
FENGRO produces phosphate rock from its Direct Application Natu ral Fertilizer
(“DANF”) Santiago Project in Tocantins State, Brazil (“ Santiago Project”). Having
restructured its business and re-started extraction and sales of its DANF products in
2017, the Company is now positi oned to expand its existing oper ations, add
additional products and is actively pursuing opportunities for increasing shareholder
Suite 1100 – 1111 Melville Street, Vancouver, B.C., Canada, V6E 3V6
Tel. 604-764-6126 Fax. 604-484-7143 | www.fengro.com
value in both organic growth and corporate transactions. The Co mpany has
assembled a first class management team and board, giving it a significant project
development and operational capac ity in Brazil and continues to pursue business
development opportunities in Brazil.
On behalf of FENGRO Industries Corp.
Giles Baynham, Chief Executive Officer and Director
For more information contact:
Email: [email protected]
+1 (604) 764 6126
FORWARD LOOKING STATEMENTS
Certain information contained in this press release constitutes “forward-looking information”, within the meaning
of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-
looking terminology such as “aims”, “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“target”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of
such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this
press release may include statements regarding the fu ture operating or financial performance of Fengro which
involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and
outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such
statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.
Among those factors which could cause actual results to differ materially are the f ollowing: market conditions
and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR
at www.sedar.com. The forward-looking statements incl uded in this press release ar e made as of the date of
this press release and Fengro disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as expressly required by
applicable securities legislation.
Disclosure - The Company’s decision to produce DANF, its DANF production targets and cash flow projections
were not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Without
a technical report demonstrating economic and technical viability, there is uncertainty as to whether the Company
will be able to economically produce DANF in the long r un and as to whether the Company will be confronted
with any unforeseen technical impediments. The Company has now completed a preliminary economic
assessment.
Disclosure - Note that the DANF PEA is preliminary in nature as it includes inferred mineral resources that are
considered too speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have
demonstrated economic viability, and as such there is no certainty that the preliminary assessment and
economics will be realized.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this
press release.