GrowMax Resources Announces Filing of Expert’s Report on the Fertimar Lithothamnion Project and Filing of Supplement to Management Information Circular
- Expert’s report estimates extractable lithothamnion to be of 7.1 million tonnes “indicating that the available lithothamnion is sufficient for many decades of production at the maximum permitted extraction rate”
- Report confirms that the Fertimar/PrimaSea acquisition provides GrowMax with a significant multi-generational asset
- Shareholders are encouraged to vote only their BLUE Proxy FOR the Fertimar/PrimaSea transaction
- For assistance with voting contact Kingsdale Advisors at 1-866-581-1489 or
TORONTO, Sept. 11, 2018 (GLOBE NEWSWIRE) -- 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 or call Kingsdale Advisors toll free at 1-866-581-1489 or email . 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 CEO
Tel.: +1 (647) 299 0046
Email:
Media Contact:
Ian Robertson
Executive Vice President, Communication Strategy
Kingsdale Advisors
Direct: +1 (416) 867-2333
Cell: +1 (647) 621-2646
Email:
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.
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.
