Major Sales Contract Signed

RNS Number : 9096G

Harvest Minerals Limited

07 March 2018

 

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

7 March 2018

Harvest Minerals Limited

('Harvest' or the 'Company')

Major Sales Contract Signed

Harvest Minerals Limited, the AIM listed natural fertiliser producer, is delighted to announce that it has signed a major sales order ('the Contract') with Agrocerrado Produtos Agrícolas e Assistência Técnica LTDA ("Agrocerrado") , a key fertiliser distributor in Brazil.  The order is for 36Kt of KPfértil, the Company's multi-nutrient natural fertiliser and remineraliser produced at its Arapua Feriliser project in Minas Gerais, Brazil.

Overview

·   Agrocerrado is a major distributor of fertiliser and agriproducts in the region surrounding Harvest's Arapua project, one of Brazil's premier agricultural belts

·     Contract is for an initial supply of 36Kt of KPfértil

·    Supply will come from existing stock already produced at Arapua where annual capacity is being expanded to 320,000 tonnes

·     The sales price of KPfértil agreed between the two parties is BRL200/t (c.US$60/t)

·     Delivery will commence in early May 2018

·     Additional discussions regarding sales are on-going

·     Sale agreed prior to MAPA registration, which is anticipated to be granted by month end

Harvest's Executive Chairman, Brian McMaster, said, "With a sales value in excess of US$2m, this is truly fantastic news and proves that we have a commercial product that is in demand in one of Brazil's premier agricultural belts.  Agrocerrado is one of the largest established fertiliser and agribusiness distributors in the region; this agreement not only underpins the opportunity in the local market for Harvest, but fully justifies our decision to expand our production capacity, which will stand at 320,000 tonnes annually by early Q2.

"Encouragingly, this contract was signed before the registration of KPfértil with the Ministry of Agriculture ('MAPA'), which is being processed now and is expected to be certified by the end of the month. This further enforces the efficacy of the our completely natural product and its recognised potential.

"As we stated at the start of the year, with the de-risking of our project over the past two years, the focus is now on sales and revenue growth as we transform Harvest into a profitable business with the aim of providing significant returns to all our shareholders. The signing of this contract is another major step towards this goal and I'd like to thank all our team in Brazil for their diligence during this process and look forward to reporting further updates as we look to maximise distribution."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

*Ends*

For further information please visit www.harvestminerals.net or contact:

Harvest Minerals Limited	Brian McMaster (Chairman)	Tel: [phone]
Strand Hanson Limited (Nominated & Financial Adviser)	James Spinney Ritchie Balmer	Tel: [phone]
Shard Capital Partners (Broker)	Damon Heath	Tel: [phone]
St Brides Partners Ltd	Isabel de Salis	Tel: [phone]
	Gaby Jenner

Notes:

Harvest Minerals (HMI.L) is a Brazilian focused fertiliser producer advancing the 100% owned Arapua Fertiliser Project, which produces KPfértil, a proven, multi-nutrient, slow release, organic fertiliser and remineraliser.  KPfértil offers many economic and agronomic benefits and addresses the significant demand for locally produced fertiliser in Brazil, with its abundant agricultural land; currently, the country imports 90% of the potash it uses but has a target to be self-sufficient in fertilisers by 2020.  Covering 14,946 hectares and located in the heart of the Brazilian agriculture belt in Minas Gerais, Arapua is a shallow, low cost mine with an indicated and inferred resource of 13.07Mt at 3.1% K₂O and 2.49% P₂O₅.  This is based on drilling just 6.7% of the known mineralisation, leaving significant upside potential. This resource is equivalent over 29 years' production and the known mineralisation expected to support 100+ years' production at 450,000 tonnes per annum.

 

END

 

 

CNTZMGGFGNLGRZG