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Previous test work has shown the project to contain significant concentrations of potassium and phosphorous, the major chemical elementals for the production of potash and phosphate fertilizers. Greensands
The Company is pleased to acquire the Florina Greensands project and will endeavour to accelerate Fidelity’s entry into the rapidly growing organic, low chloride regional and global fertilizer market in collaboration with Lions Bay.
Under the terms of the agreement with GAL, and the vendors (
Issue 3 million ordinary common shares at
$0.06 per share, which will be restricted from trading for one year;Agree to fund its seventy-five per cent share of Stage 1 costs estimated to be AUD
$250,000 (Fidelity’s share AUD$187,500 );Agree to fund its seventy-five per share of Stage 2 costs estimated to be AUD
$1,000,000 including a scoping study (Fidelity’s share estimated to be AUD$750,000 );Upon completion of the scoping study, issue an additional 3 million ordinary common Fidelity shares
Should the scoping study show a pre-tax IRR of over 19 per cent then the vendors will be entitled to a bonus payment of AUD
$1,000,000 to be satisfied by cash and shares (with a minimum fifty per cent cash) (Fidelity’s share estimated to be AUD$750,000 ). Any shares issued would be issued at a floor price of$0.06 .GAL must pay a royalty of the lesser of AUD
$4 per tonne or 5% of the net sale price of products sold on the first 250,000 tonnes of production from the project (the “Royalty”). The Royalty will be reduced to AUD$2 per tonne after the initial 250,000 tonnes. The Royalty cannot exceed 5% of the sales price of the product. Otherwise, the Royalty shall be paid on industry standard terms and conditions, to be documented within a formal Royalty Agreement.
The acquisition remains subject to the satisfaction of customary conditions before closing, including exchange approval for the issuance of common shares. On completion Mr John Canaris will be invited to join the board of Fidelity and remain General Manager of Greensands Australia.
Fidelity’s management team has extensive fertilizer project development experience and is excited to have negotiated the acquisition of this new high value fertilizer opportunity. The recent adoption rate of greensand fertilizers by the agriculture sector suggests that greensand fertilizer uptake is poised for majorgrowth, and that Fidelity will be rapidly positioned to participate in this environmentally responsible growth.
Fidelity remains committed to advance its exploration efforts at the
About
On behalf of the Board of
CEO, President and Director
Email:dean@fidelityminerals.com
For more information, please visit the corporate website athttp://www.fidelityminerals.com or contact:
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Disclaimer & Forward-Looking Statements:This news release contains forward-looking statements. Forward-looking statements are statements that relate to future events or future financial performance. In some cases, you can identify forward-looking statements by the use of terminology such as “may”, “should”, “intend”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “predict”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements speak only as of the date of this news release. This news release may also contain inferences to future oriented financial information (“FOFI”) within the meaning of applicable securities laws. The information in this news release has been prepared by our management to provide a context to provide the reader with an outlook for our future activities and anticipated key milestones and may not be appropriate for other purposes. Forward-looking statements in this announcement include, (but are not limited to) advancing certain key project activities that could represent important milestones which the Company expects may represent material valuation catalysts, such as the expectation that through theassembling of a portfolio of high-quality mining assets in
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