Itafos Announces Closing of US$20,000,000 Secured Working Capital Facility at Itafos Conda and Expanded Commercial Relationship with Gavilon
ITAFOS ANNOUNCES CLOSING OF US$20,000,000 SECURED WORKING CAPITAL
FACILITY AT ITAFOS CONDA AND EXPANDED COMMERCIAL RELATIONSHIP WITH
GAVILON
TORONTO, ON – October 31, 2019 – Itafos (TSX VENTURE: IFOS) (the “ Company”)
announced today that Itafos Conda has closed a US$20,000,000 secured working capital facility
(the “Revolving Facility”) and has expanded its commercial relationship with Gavilon Fe rtilizer,
LLC (“Gavilon”), a subsidiary of The Gavilon Group, LLC.
“This strategic transaction allows us to more effectively manage our working capital and bolsters
our long-standing partnership with Gavilon,” said Tim Vedder, General Manager of Itafos Conda.
The Revolving Facility considers an initial tranche of US$10,00 0,000 drawn at closing with an
option, subject to certain terms and conditions, to commit up to an additional US$10,000,000. The
proceeds of the Revolving Facility will be used for working capital and other general purposes of
Itafos Conda. The Revolving Facility matures in two years and accrues interest at 8% per annum
for any amounts outstanding and has a non-use fee of 4% per annum for any undrawn committed
amounts. The Revolving Facility will be secured by certain acco unts receivable and inventory of
Itafos Conda.
In connection with the closing of the Revolving Facility, Itafos Conda has expanded its commercial
relationship with Gavilon, including supply of additional fertilizer product to Gavilon over the term
of the Revolving Facility.
About Itafos
The Company is a vertically integrated phosphate fertilizers and specialty products company with
an attractive portfolio of long-term strategic businesses and p rojects located in key fertilizer
markets worldwide.
The Company owns, operates and is developing the following businesses and projects:
Itafos Conda – a vertically integrated phosphate mine and fert ilizer business with
production and sales capacity of approximately 550kt per year o f monoammonium
phosphate (“MAP”), MAP with micronutrients (“ MAP+”), superphosphoric acid (“ SPA”),
merchant grade phosphoric acid (“ MGA”) and specialty products including ammonium
polyphosphate (“APP”) located in Idaho, US;
Itafos Arraias – a phosphate fertilizer business with producti on and sales capacity of
approximately 500kt per year of single superphosphate (“ SSP”), SSP with micronutrients
(“SSP+”), premium PK compounds and approximately 40kt per year of exc ess sulfuric
acid located in Tocantins, Brazil;
Itafos Paris Hills – a high-grade phosphate mine project locat ed in Idaho, US;
Itafos Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau;
Itafos Santana – a vertically integrated high-grade phosphate mine and fertilizer plant
project located in Pará, Brazil;
Itafos Mantaro – a large phosphate mine project located in Jun in, Peru; and
Itafos Araxá – a vertically integrated rare earth elements and niobium mine and extraction
plant project located in Minas Gerais, Brazil.
For more information, or to join the Company’s mailing list to receive notification of future press
releases, please visit the Company’s website, www.itafos.com.
About The Gavilon Group, LLC
The Gavilon Group, LLC connects producers and consumers of agri cultural products and feed
ingredients through its global supply chain network. The compan y provides origination, storage
and handling, transportation and logistics, marketing and distr ibution, and risk management
services to customers and suppliers across the globe. The Gavilon Group, LLC, a wholly owned
subsidiary of Marubeni Corporation, employs more than 1,900 people at nearly 300 facilities and
offices worldwide.
Forward Looking Information
Certain information contained in this news release constitutes forward looking information. All
information other than information of historical fact is forward looking information. The use of any
of the words “intend”, “anticipate”, “plan”, “continue”, “estim ate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and sim ilar expressions are intended to
identify forward looking information. This information involves known and unknown risks,
uncertainties and other factors that may cause actual results o r events to differ materially from
those anticipated in such forward looking information. No assur ance can be given that this
information will prove to be correct and such forward looking i nformation included in this news
release should not be unduly relied upon.
Forward looking information is subject to a number of risks and other factors that could cause
actual results and events to vary materially from that anticipa ted by such forward looking
information. Although the Company has attempted to identify imp ortant factors that could cause
actual results to differ materially from those contained in for ward-looking statements, there may
be other factors that cause results not to be as anticipated, e stimated or intended. Factors that
may cause actual results to differ materially from expected res ults described in forward-looking
statements include, but are not limited to, those risk factors set out in the Company’s Management
Discussion and Analysis and other disclosure documents availabl e under the Company’s profile
at www.sedar.com. Readers are cautioned that the foregoing list of risks, uncertainties and
assumptions are not exhaustive. The forward-looking information included in this news release is
expressly qualified by this cautionary statement and is made as of the date of this news release.
Itafos undertakes no obligation to publicly update or revise any forward-looking information except
as required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PR OVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXC HANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Itafos Investor Relations
www.itafos.com