Feronia Inc. Establishes Fertilizer Subsidiary
May 13 2011 - 10:09AM
Marketwired
Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE: FRN) is
pleased to announce that it has incorporated a wholly-owned
subsidiary in the Democratic Republic of Congo ("DRC") to pursue
the production of agricultural lime and other fertilizers.
The Company anticipates becoming a major consumer of
agricultural lime, primarily in the arable farming division.
Feronia is also a rapidly growing consumer of various fertilizers
in both its arable and oil palm operations. Local fertilizer prices
are currently in excess of $1,000 per tonne, a significant premium
to world prices.
Large-scale deposits of both limestone and various minerals
required for the production of fertilizers are present in the DRC.
Feronia plans to lease and develop some of these deposits through
its wholly-owned subsidiary and in the process cover local
requirements and ultimately export into international markets.
Feronia has identified suitable concessions for limestone and is
in the process of securing the required leases. Additional
agri-mineral concessions are being identified and reviewed with
local geologists. Following further technical investigations, the
Company anticipates that the appropriate leases will be
obtained.
The subsidiary company is currently managed by Feronia's
management team. These opportunities are capital intensive and
require specialized expertise. Accordingly, Feronia plans to
install a management team experienced in the development of
fertilizer assets and evaluate various options to fund the growth
of the subsidiary including seeking a strategic investor in the
unit, acquiring an independent public listing, or funding the
growth through cash-flows of the parent. A consultant has been
engaged to complete a feasibility study and develop a business plan
for the agricultural lime business, completion of which is
anticipated by the end of Q2, 2011.
The Company expects that the development of large scale
agriculture in the DRC and other countries in the region will
result in a large increase in the demand for agricultural lime and
fertilizers. Company CEO James Siggs remarked "There is an exciting
opportunity for Feronia to leverage its 100-year operating history
in the DRC to vertically integrate into the production of
agri-minerals and create significant shareholder value in the
process."
About Feronia Inc.
Feronia is a large-scale commercial farmland and plantation
operator in the DRC. The Company uses modern agricultural practices
to operate and develop its oil palm plantations and arable farming
business division. Feronia believes in the immense agricultural
potential of the DRC for high-quality foodstuffs and edible oils
given its ideal climate, excellent soil and highly skilled and
experienced workforce. Feronia's management team is comprised of
senior agriculturalists with extensive experience in managing both
plantations and large-scale mechanized farming operations in
emerging markets. Feronia is committed to sustainable agriculture,
environmental protection and providing support for local
communities. For more information please see, www.feronia.com.
Cautionary Notes
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may", "will" and include without limitation, statements regarding
the stated use of proceeds; plan of operations and comparative
advantages; and benefits of this investment. There can be no
assurance that such statements will prove to be accurate; actual
results and future events could differ materially from such
statements. Factors that could cause actual results to differ
materially include, among others, regulatory risks, risks inherent
in foreign operations, commodity prices, competition, and
investments having no history of operations. Most of these factors
are outside the control of the Company. Investors are cautioned not
to put undue reliance on forward-looking information. Except as
otherwise required by applicable securities statutes or regulation,
the Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Chairman, Feronia Inc. Ravi Sood (416) 907-2026
Ravi.Sood@feronia.com www.feronia.com
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