Pan American Fertilizer (CNSX: PAF) Chairman Letter: Re-cap 2012, a look at 2013.
VANCOUVER, BRITISH COLUMBIA, February 15, 2013 - Pan American Fertilizer Corp., (CNSX: PAF) ("Pan American" or the "Company") releases the following Corporate Update to its shareholders, from the Chairman; Randy Wright.
It gives me great pleasure to be able to provide you with an update on the progress and developments of Pan American Fertilizer Corp. Since our establishment in May 2012, we have made significant progress on our Santiago Del Estero Agricultural Gypsum project and I am pleased to confirm that the Company has successfully met the milestones that were established for 2012.
Highlights for 2012 include:
-Official Mining Certificate obtained;
-Successful testing of our extraction process;
-Execution of 24 hour extraction cycle;
-Agreement established with nation-wide distribution company (Mamasu);
-Successful execution of end-to-end sales cycle;
-12,000 tonnes of Calcium Sulphate (granular and powder) extracted; and
-USD$490,000.00 received in revenue (from actual sales completed during our testing phase).
These achievements are significant as 2012 was a testing, building and development year for us. In 2013 our focus shifts to the following areas; growing our sales channels, increasing our extraction capacity and expanding distribution into other countries. It is our expectation that we will experience continuous organic growth this year, and our confidence in meeting our expectations is demonstrated in the milestones we have set for 2013.
Primary Milestone (2013):
-Sales of 100,000 tonnes
Late last year, Pan American disclosed that the Company had successfully closed a purchase order with Paraguayan company; Agro Industrial ("Agro"), for up to 48,000 tonnes (announced Nov 16, 2012), at a price of US$97.81 per tonne, to be executed and delivered in 2013. We are pleased to announce that the Company has met, and continues to meet, the delivery milestones under this agreement.
In addition to the sales to Agro, we will continue to distribute our high quality product throughout Argentina, via our Mamasu distributor (per the arrangement with Mamasu announced July 30, 2012). We are pleased to report that through this arrangement, we have shipped approximately 10,000 tonnes.
As we continue to mature, and in alignment with our core business model of increasing cash-flow by extracting and selling fertilizer related products, once primary growth milestones are reached, it is the Company's medium to long term intended goal, that subject to legal and contractual restrictions, we will be able to declare a dividend to shareholders.
Actual declared dividends are subject to the discretion of the Company's Board of Directors and may vary from the intentions stated depending on, among other things, the Company's earnings, financial requirements and other conditions existing at such future time.
Our strategy remains based on the simple principal of supplying the highest quality product available to a continually growing, robust market. As we move forward and meet both our extraction and sales milestones, our anticipated revenue stream will allow us to also pursue value added transactions with local Argentinean and international partners. We will continue to remain open to new opportunities that will leverage our current position and enable us to meet our long-term vision of becoming a major global fertilizer supplier.
Your Board of Directors and management team remain dedicated to increasing shareholder value, and we continue to be motivated by the prospects of the Company. I would like to personally thank each of you, and will work to ensure your trust is maintained as Pan American grows.
Chairman, President and CEO
About Pan American Fertilizer Corp.
Pan American is a Canadian company dedicated to providing fertilizer to growing global markets specifically in South and Central America. The company is focused on the extraction of a specific type of fertilizer called calcium sulphate (also referred to as "Agricultural Gypsum") currently in Argentina. To ensure long term development and increase shareholder value, Pan American currently plans to significantly expand its current operational objectives while expanding its asset base by acquiring additional calcium sulphate and other fertilizer related assets and by expanding its markets to neighbouring countries with Argentina.
When used as a fertilizer and as a soil remediator, calcium sulphate is a soft sulphate mineral composed of calcium sulphate dihydrate which is extremely rich in sulphur and calcium. When dissolved in water, the mineral becomes calcium and sulphate sulphur ions, both of which are required nutrients for plants. Calcium sulphate plays a vital role in establishing and maintaining good chemical balance in soil, water and plants, specifically with healthy root development. Ultimately, calcium sulphate increases overall crop quality and yields. For more information please look at our website www.PAFertilzer.com
On behalf of the Board of Directors of Pan American Fertilizer Corporation.
Chairman, President and CEO
FOR MORE INFORMATION, PLEASE CONTACT:
The CNSX does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. The words "is expected" or "estimates" or variations of such words and phrases or statements that certain actions, events or results "may" or "could" occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Pan American as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Many of these factors can affect Pan American's actual results and could cause actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Pan American. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. Except as required pursuant to applicable securities laws, Pan American will not update these forward looking statements to reflect events or circumstances after the date hereof.