DuSolo Secures Multi-Year DANF Sales Contract for Proceeds Totaling C$5.5 Million
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 4, 2015) - DuSolo Fertilizers Inc., (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) ("DuSolo" or "the Company") is pleased to announce that it has entered into a two-year, 60,000 tonne sales contract (30,000 tonnes per year) (the "Contract") for its 15% P2O5 Direct Application Natural Fertilizer ("DANF") product with a local Brazilian fertilizer distributor (the "Buyer"). Over the term of the Contract, the Buyer has agreed to pay BRL230 per tonne for total proceeds of BRL13,800,000 or approximately C$5,500,000 (all figures as per the June 3, 2015 exchange rate).
"We are happy to be entering into yet another significant sales contract for this planting season," said Eran Friedlander, President and CEO of DuSolo. "Being the sole local supplier of DANF in the region, our product is in demand as it offers local farmers a high quality fertilizer at competitive prices. We are currently in negotiations with a number of local agri-businesses for our DANF product and expect to announce more sales contracts in the coming weeks."
The Buyer has made an advance payment of BRL115,000 or approximately C$45,600 for immediate delivery of 500 tonnes of DANF product. The Buyer has further committed to pay BRL575,000 or approximately C$228,500 for an additional 2,500 tonnes of DANF product, to be delivered by July 1, 2015.
This year the Company has secured the following sales contracts: 40,000 tonnes for approximately C$4,400,000 (announced January 12, 2015), 10,000 tonnes for approximately C$1,300,000 (announced April 7, 2015) and 1,100 tonnes for approximately C$102,000(announced April 21, 2015). In total, DuSolo has sales contracts in place for 81,100 tonnes of DANF product totaling approximately C$8,500,000 for the 2015 planting season, and an additional 30,000 tonnes for the 2016 planting season.
ABOUT DUSOLO
DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government, to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.
The Company's shares are publicly traded on the TSX Venture Exchange under the symbol DSF, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.
On behalf of the Board of Directors
Eran Friedlander, President and CEO
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 "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "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 future operating or financial performance of DuSolo 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 following: 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 included in this press release are made as of the date of this press release and DuSolo 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 is not basing its decision to begin production of DANF on a feasibility study of mineral reserves demonstrating economic and technical viability. Without a technical report demonstrating economic and technical viability, there is increased uncertainty as to whether DuSolo will be able to economically produce DANF products and as to whether DuSolo will be confronted with any unforeseen technical impediments. Similarly, the Company has not completed a preliminary economic assessment before making production and project expansion decisions.
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.
Contact
DuSolo Fertilizers Inc.
Eran Friedlander
President and CEO
(604) 272-7157
ir@dusolo.com
www.DuSolo.com