GrowMax Resources Announces Filing of Expert’s Report on the Fertimar Lithothamnion Project and Filing of Supplement to Ma...
September 11 2018 - 10:54PM
GrowMax Resources Corp. (“
GrowMax”) (TSX-V: GRO)
is pleased to announce that it has filed an expert’s report on the
lithothamnion project1 of Fertimar Mineração e Navegação Ltda.
(“
Fertimar”), a privately-held established
Brazilian producer of premium organic animal feed and plant
fertilizer products based on lithothamnion. As previously detailed
by GrowMax in press releases of August 28 and August 29,
2018, GrowMax has entered into a share purchase agreement (the
“
SPA”) to acquire Fertimar (the “
Proposed
Acquisition”). The expert’s report provides detailed
information about Fertimar’s assets and includes, among other
technical information about Fertimar’s lithothamnion deposit, an
estimate of 7.1 million tonnes of extractable lithothamnion.
Pursuant to the Proposed Acquisition, GrowMax
will acquire all the issued and outstanding shares of PrimaSea
Holdings Ltd. (“PrimaSea”) — which holds all the
shares of Fertimar — in exchange for 213,925,645 of the common
shares of GrowMax, which will represent 50% of GrowMax’s issued and
outstanding common shares. This represents a value of approximately
C$0.15 per GrowMax share based on GrowMax’s estimated cash reserves
at closing of C$32.5 million, or a 30% premium over GrowMax’s
60-day volume weighted average price, at the date of the
announcement of the Proposed Acquisition. The Proposed Acquisition
has been unanimously approved by GrowMax’s board of directors and
already has the support of the holders of over 32% of GrowMax
shares.
GrowMax has also filed today a supplement to its
previously filed management information circular dated August 27,
2018 for its annual and special shareholders meeting to be held on
September 25, 2018. The supplement includes a summary of the
expert’s report and the background to the obtaining of the report,
as well as additional material information and assumptions. The
supplement also includes confirmation that GrowMax’s financial
advisor, Bordeaux Capital Inc., has reconfirmed its fairness
opinion and that GrowMax’s board of directors has reconfirmed their
unanimous determination that the proposed acquisition is in the
best interests of GrowMax. GrowMax also filed today a full
translated version of the SPA.
“We are very pleased to provide this update to
our shareholders and to the overall market. The expert’s
report shows the potential size of the lithothamnion deposit and
the amount of work completed to date by PrimaSea / Fertimar.
Knowledge and proof of the quality and value of the product has
been well established in many tests and field trials and now, after
significant investments over the past years, the company is ready
to enter a sales-driven stage. GrowMax is ready to step in and take
advantage of the opportunity in the Brazilian and export
market.
PrimaSea will add an asset and team that have
proven the market concept for lithothamnion and are on the cusp of
real growth, to which GrowMax can add value. Our fundamental
investment thesis is based on: (i) the fact that the specialty
plant and animal nutrient sector is attracting strong investor
interest, as supported by significant share-price appreciation for
several companies operating in it, and (ii) the addition of a
long-life asset with upside for production expansion. As our
new management team builds out sales, and our strengthened
independent board helps us expand our international presence, the
opportunity for GrowMax to achieve its growth objectives is now
better than ever,” stated Stephen Keith, GrowMax’s President &
CEO.
____________1 Lithothamnion is not a mineral to
which the term “mineral project” in National Instrument 43-101
(“NI 43-101”) applies, and therefore the expert
report is not a technical report for purposes of NI 43-101.
Vote Your BLUE Proxy to Keep GrowMax on the Right
Track
To benefit from the PrimaSea transaction and to grow value,
shareholders are encouraged to vote only their BLUE Proxy for all
of management’s resolutions including FOR management’s director
nominees and FOR the Proposed Acquisition.
If you have already voted using another proxy,
you may vote again on the BLUE Proxy. The later dated BLUE Proxy
will count as it supersedes any previously given proxy. Vote BLUE
at www.proxyvote.com or call Kingsdale
Advisors toll free at 1-866-581-1489 or email
contactus@kingsdaleadvisors.com. The deadline to vote is 10:00 a.m.
(Calgary time), being 12:00 p.m. (Toronto time), Friday, September
21, 2018. There is a team standing by to help.
For more information, please contact:
Stephen Keith, P. Eng.President and CEOTel.: +1
(647) 299 0046Email: info@growmaxcorp.comwww.growmaxcorp.com
Media Contact:
Ian RobertsonExecutive Vice President,
Communication StrategyKingsdale AdvisorsDirect: +1 (416)
867-2333Cell: +1 (647) 621-2646Email:
irobertson@kingsdaleadvisors.com
About GrowMax Resources
Corp.
GrowMax Resources Corp. is a publicly listed
Canadian company holding exploration assets bearing phosphate and
potassium-rich brine resources on its Bayovar Property, which is
located in the Sechura Desert in northwestern Peru.
GrowMax has been focusing its efforts on
leveraging its existing balance sheet to consolidate junior
fertilizer assets in Latin America, targeting projects with
favorable margins and generating cash flow. The Company’s vision is
to become a prominent player in the Latin American fertilizer
industry.
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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.
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