Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.

December 15, 2009 09:15 ET

Americas Petrogas Completes Potash Financing of US$9.5 Million

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2009) - Americas Petrogas Inc. ("Americas") (TSX VENTURE:BOE) is pleased to announce that its subsidiary, GrowMax Agri Corp. ("GrowMax", formerly Americas Potash), has completed a US$9.5 million equity financing, which will be used towards furthering GrowMax's potash brine project in Bayovar, Peru. The investment was received after an extensive amount of due diligence was performed, including a site visit to Bayovar. In return for the US$9.5 million, GrowMax issued 9.5 million common shares at US$1.00 per share.

As a result of this financing, GrowMax now has 49.5 million common shares outstanding. GrowMax owns 100% of Americas Potash Peru S.A., the company within which its Bayovar potash brine project is being developed.

Highlights of GrowMax's Bayovar potash brine project are as follows:

  • GrowMax's Bayovar potash brine project will utilize solar evaporation processing of mineral rich brines, given its unique location 6 degrees south of the equator in the Sechura Desert on the Pacific Ocean. This location provides the ideal amount of sun and wind for solar evaporation processing.
  • Historical work on the concession included substantial drilling and coring of wells, sampling, geological mapping and construction of a pilot plant utilizing solar evaporation processing which resulted in the production of high quality potassium chloride (i.e. potash fertilizer).
  • Relative to other potash projects, Americas believes that its surface brine potash project will involve low capital investment and low operating costs, given that it will apply solar evaporation processing and its proximity to infrastructure including paved roads, fresh water, power, gas and port facilities.
  • GrowMax has assembled a seasoned team of professionals with experience in reserves evaluation, mineral recovery including recovery of potash applying solar evaporation processing of brines, chemical analysis of brines, and engineering and construction of solar processing facilities.
  • GrowMax has established an office and research lab in Piura, Peru, which is 20 km from its potash concession.
  • GrowMax's proposed potash plant will serve fertilizer market demand within Peru and in surrounding countries such as Ecuador, Colombia, and Brazil and has 2 nearby ports for export to markets such as India and China.
  • The mineral and surface rights within the 202,000 acre (82,000 hectare or 820 sq. km.) concession have already been secured.
  • The solar evaporation process involves a low carbon footprint.

Commenting on the completion of this financing, Barclay Hambrook, President and CEO, stated "This US$9.5 million will allow us to accelerate our activities of drilling, testing and construction of a new pilot plant at our Bayovar project, allowing us to bring GrowMax closer to initial production."

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.

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