Itafos Provides Update ON the Company and the Company’S Key Strategic Initiatives
ITAFOS PROVIDES UPDATE ON THE COMPANY AND
THE COMPANY’S KEY STRATEGIC INITIATIVES
TORONTO, ON – August 23, 2017 – Itafos (TSX VENTURE: IFOS) (“ Itafos”) provided an update
today on the company and the status of its key strategic initiatives.
Itafos Arraias Single Super Phosphate (“SSP”) Operations
Itafos finalized the recommissioning of the Itafos A rraias SSP Operations in Brazil at the beginning
of July 2017, on schedule and on budget. Itafos is now actively working to ramp-up its production
with a target to reach 80.0% of capacity by year-end. Initial results are positive with P205
concentrate grades reaching le vels of over 30.0% and SSP pr oduction of over 17,000 tons on
specification (01-17-00). In antic ipation of the start of the ra mp-up phase and as mentioned in its
last update in June 2017, Itafos in itiated its sales and marketing strategy and booked and received
payment for its first sale of 500 t ons of SSP to a local blender in Br azil. Itafos will provide periodic
status reports as it continues to ramp-up production of the It afos Arraias SSP Operations and
implements its sales and marketing strategy.
Staffing
Itafos continues to advance on its objective of build ing a world class leadership team. In addition to
filling all top management, coordi nator and supervisor positions at the Itafos Arraias SSP
Operations, effective July 31, 2017 Paul Deko k was appointed to head Itafos’ Operations group.
Marten Walters, who previously led the Operat ions group, trans itioned his responsibilities to head
Itafos’ Engineering group. Mr. Walters will now focus on development and engineering for new
projects and leading technical initiatives on special projects.
Mr. Dekok is a senior executive with over 25 year s of experience in the phos phate industry. Prior to
joining Itafos, Mr. Dekok was President of PED Quality Consulting and in that capacity worked
closely with the Itafos management team in t he recommissioning of the Itafos Arraias SSP
Operations since March 2017. Mr. Dekok is a retired President of Phosphate from Potash
Corporation who has diverse oper ational experience in mining phosphate rock and manufacturing
fertilizers, with a successful track record in operational safety, and environmental and product quality
compliance. As head of Itafos’ O perations group, Mr. Dekok will fo cus on all aspects of facility
operations and will report to Itafos’ CEO.
Ore to and from Homogenization Pile SSP Warehouse
Other Highlights
Itafos and certain of its subsidiaries finalized t he change of their respecti ve functional currencies
from CAD or BRL to USD based on the primar y currency of Itafos’ operations and financing
activities being denominated in USD.
On April 17, 2017, Itafos’ ownership in Stonegate Agricom Ltd. (“ Stonegate”) increased to
approximately 35.4% upon the clos ing of a non-brokered privat e placement by Stonegate in
which Itafos subscribed to all the shares issued for cash consideration of CAD$950,000. On the
following day, Itafos’ ownership in Stonegat e decreased to approxim ately 35.2% upon the
issuance by Stonegate of 4,000,000 shares pursuant to the exer cise of warrants held by third
party warrant holders.
On June 12, 2017, Zaff LLC (“ Zaff”) redeemed certain membership units from its members in
exchange for delivery by Zaff of an aggregate of 15,986,493 Itafos shares to such members (the
“Disposition”). Prior to the Disposition, Zaff he ld 65,868,991 Itafos shares, representing
approximately 83.0% of the issued and outstanding shares of Itafos (on an undiluted basis). Zaff,
now a wholly-owned subsidiary of Castlelake L.P., currently holds 49,882,498 Itafos shares,
representing approximately 60.6% of the issued and outstanding s hares of Itafos (on an
undiluted basis).
On July 11, 2017, Mr. Evgenij Iorich was appointed to the board of Itafos. Mr. Iorich serves as a
Managing Partner at Pala Investments Limited (“Pala”) and is responsible for oversight of Pala’s
private equity and liquid investment portfolios. Mr. Iorich joined Pala Investments AG in
September 2006 and has since wo rked on a wide range of stra tegic initiatives, M&A
opportunities, operational and financial planning and structuring in emerging markets. Mr. Iorich’s
commodities experience extends across a broad range of bulk co mmodities, precious and base
metals and he is currently a Director of Neva da Copper Corp. (TSX: NCU), Serinus Energy Inc
(TSX:SEN) and Peninsula Energy Limited (ASX:PEN). Prior to joining Pala, Mr. Iorich was a
financial manager at Mechel, the Russian metals and mining company. Mr. Iorich graduated from
the University of Zurich with a Master of Arts degree in 2004.
On July 18, 2017, Itafos closed the arrang ement agreement dated May 18, 2017 with Stonegate
pursuant to which Itafos acquired all of the issued and outstanding common shares of Stonegate
not already owned directly or indirectly by Itafos by way of a court-approved plan of arrangement
under the Business Corporations Act (Ontario).
On July 21, 2017, the shares of Stonegate were delisted from the Toronto Stock Exchange and
on August 1, 2017 Stonegate ceased to be a reporting issuer.
On August 11, 2017, Itafos received funding from Zaff and Pala in the aggregate amount of
USD$10,000,000 and documented such transaction by means of a USD$5,000,000 promissory
note to Zaff and a USD$5,000,000 promissory note to Pala. On the same day, Itafos indirectly
provided a loan to GB Minerals Ltd. (“ GB Minerals”) in the amount of USD$2,500,000 and GB
Minerals documented such transaction by means of a promissory note.
The table below summarizes Itafos’ balance sheet as of June 30, 2017:
Amount in
USD millions
Cash $9.37
Current Assets $6.49
Non-Current Assets $312.44
Total Assets $328.30
Current Liabilities $24.55
Non-Current Liabilities $14.19
Total Liabilities $38.74
Equity $289.56
Total Liabilities and Equity $328.30
The Financial Statements and Management Discussion and Analysis for the year ended December
31, 2016 and quarter ended March 31, 2017 and June 30, 2017 are available under Itafos’ profile at
www.sedar.com and at its website, www.itafos.com.
About Itafos
Itafos (TSX VENTURE: IFOS) is focused on becom ing a significant in tegrated producer of
phosphate based fertilizers and relat ed products. Itafos has an experi enced team with significant
experience in the business of fertilizer operati ons, management, marketing and finance. Itafos owns
and operates the Itafos Arraias SSP Operations, which consists of an integrat ed fertilizer producing
facility comprised of a phosphate mine, a mill, a beneficiation plant, a sulphuric acid plant, an SSP
plant and a granulation plant and rela ted infrastructure located in c entral Brazil. Itafos’ exploration
portfolio includes a number of additional projects in Brazil, including the Santana Project, a high-
grade phosphate deposit located in cl ose proximity to the largest fert ilizer market of Mato Grosso
State and animal feed market of Pará State, and the Araxá Project, a high-grade rare earth
elements, niobium and phos phate deposit located in close pr oximity to two operating mines,
therefore benefiting from existing local infrastructure. In addition, Itafos owns a 100.0% interest in
Stonegate Agricom Ltd. which owns the Paris Hills Project, a high-grade p hosphate deposit located
in Idaho, United States and t he Mantaro Project, a high-grade phosphate deposit located in Peru
and an approximately 31.3% interest in GB Minerals Ltd. which owns the Farim Project, a high-grade
phosphate deposit located in Guinea Bissau.
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Forward-Looking Statements
This news release contains fo rward-looking information (“FLI”) regarding future events or the future
performance of Itafos. Generally, FLI can be ident ified by expressions of belief, expectation or
intention, and often contain words su ch as “anticipates”, “believes”, “expects”, “estimates”, “intends”,
“plans”, “could”, “may”, “might”, “should”, “would” or variations of such words. FLI is based on various
assumptions, including with respect to operati ons and production at the Itafos Arraias SSP
Operations and other projects, te chnical feasibility, resources and reserves, mine life, financing
sources and use of funds, growth of Brazilian and global fertilizer markets, results of operations,
performance, business prospects and opportunities. While Itafos considers these assumptions to be
reasonable based on information curr ently available, such assumpti ons may prove to be incorrect.
FLI is subject to various risks and uncertainties t hat could cause ac tual events or results to differ
materially from those project ed. These risks and uncertainties include, but are not limited to,
variations from Itafos’ assumptions regarding the matters mentioned above; the timing and outcome
of current and pending environmental claims or la wsuits; imprecision in mineral reserves and
resources estimates; changes in the agriculture, energy, fertilizer , financial, raw material and
transportation market conditions; fluctuations in commodity prices and currency exchange rates;
inability to obtain necessary permits; insur ance and uninsured risks; pot ential increases in
production costs; Itafos’ ability to effectively in tegrate any future acquisi tions into its business
structure; changes in government policy and in en vironmental and other gov ernmental regulation;
Itafos’ ability to attract and reta in skilled employees with relevant industry expertise; catastrophic
events such as fires, floods, explosions, release of hazardous chemicals and seismic events, as well
as other risks and uncertainties reported by Itafos from time to time in its Management’s Discussion
and Analysis filed with the securities r egulatory authorities in Canada and available at
www.sedar.com. FLI should not be read as a guarantee of future events or results. You are
cautioned not to put undue reliance on FLI.
For more information, please visit http://www.blueshirtgroup.com.
Neither the TSXV nor its Regulati on Services Provider (as that term is defined in policies of
the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Itafos
Brian Zatarain, Chief Executive Officer
www.itafos.com
The Blueshirt Group
Gary Dvorchak, CFA
Managing Director
+1 (323) 240-5796