Itafos Provides Update ON Itafos Farim Engineering and Construction, Announces Termination of Epcm Agreement with Lycopodium
ITAFOS PROVIDES UPDATE ON ITAFOS FARIM ENGINEERING AND CONSTRUCTION,
ANNOUNCES TERMINATION OF EPCM AGREEMENT WITH LYCOPODIUM
TORONTO, ON – January 24, 2020 – Itafos (TSX VENTURE: IFOS) (the “ Company”) today
provided an update on the engineering and construction of Itafo s Farim and announced the
termination of the engineering, procurement and construction management (“EPCM”) agreement
with Lycopodium Minerals Canada Limited (Toronto, Canada) (“Lycopodium”).
In July 2019, the Company announced an EPCM agreement with Lycopodium for services related
to the development of Itafos Farim ’s mine, which is expected to p r o d u c e 1 . 3 M t p e r y e a r o f
phosphate rock, and services related to the on land portion of Itafos Farim’s port, which is
expected to load Itafos Farim’s mine production for global expo rt. The EPCM agreement with
Lycopodium contemplated two phases; phase one considered prepar ation of a definitive cost
estimate and schedule and phase two considered additional detai led engineering, equipment
procurement and construction. Given the revised project financi ng timeline of expected lender
approval during the first half of 2020, Itafos Farim suspended the EPCM agreement following
completion of phase one and did not provide notice to proceed f or phase two. As a result, the
EPCM agreement was terminated on January 17, 2020.
“The EPCM agreement with Lycopodium was structured in two phase s to provide flexibility with
respect to timing and not commit the Company ahead of project f inancing. We will look to enter
into a new agreement to cover the expected phase two activities of detailed engineering,
equipment procurement and construction that aligns the timing o f and capital expenditures
associated with such activities with the project financing time line of Itafos Farim,” said Dr.
Mhamed Ibnabdeljalil, CEO of the Company.
Also in July 2019, the Company provided an update on the engine ering, procurement and
construction administration agreement with W.F Baird and Associ ates Ltd. (Madison, USA)
(“Baird”) for services related to the development of the marine portio n of Itafos Farim’s port. To
date, Baird has completed approximately 90% of its detailed design work. Following an extensive
process, the Company has selected Stefanutti Stocks Coastal (Ca pe Town, South Africa), a
division of Stefanutti Stocks (Pty) Ltd ("Stefanutti"), as contractor for the marine portion of Itafos
Farim’s port. Baird is expected to manage Stefanutti for construction of the marine portion of Itafos
Farim’s port with mobilization and construction expected to com mence following completion of
project financing.
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 Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau;
Itafos Paris Hills – a high-grade phosphate mine project locat ed in Idaho, US;
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 news
releases, please visit the Company’s website, www.itafos.com.
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.
The Company undertakes no obligation to publicly update or revi se 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 NEW S
RELEASE.
For further information, please contact:
Itafos Investor Relations
www.itafos.com