TORONTO,
ONTARIO--(Marketwire - March 17, 2010) - MBAC Fertilizer Corp. ("MBAC" or the
"Company") (TSX:MBC) is pleased to report the findings for its concept
validation study for its potash project (the "Coastal Potash Project")
conducted by its consultant, AMEC Americas Ltd. ("AMEC").
Background
MBAC has
exploration permits for potash covering approximately one (1) million hectares
along the coast of central and north-east Brazil. MBAC has identified numerous
sylvinite occurrences using data available through the Brazilian Petroleum
Agency ("ANP"). AMEC was retained by MBAC to perform a study which would
provide the conceptual technical and cost information in respect of the Coastal
Potash Project.
Results of the
Study
Combining MBAC's
exploration data with AMEC's potash, solution mining and off-shore experience,
MBAC has provided a preliminary view of the technical and economic feasibility
of various Coastal Potash Project mining scenarios. While costs for off-shore
solution mining are expected to be higher than for equivalent land based potash
mining operations, the study suggests that a near-shore solution mining
operation off the Brazilian coast could be profitable. Scenario-based project
returns up to 20 per cent were looked at as a baseline and the conclusion is
that with an attractive ore deposit, and potash prices stabilize at least at
current levels and are maintained over the long term, such returns are
possible. AMEC concluded that the concept of solution mining a near-shore
potash deposit is technically valid based on current information and foresaw no
"fatal flaws" preventing the Coastal Potash Project from advancing to the next
stage (a pre-feasibility study in conjunction with a NI 43-101 report) once an
appropriate ore deposit is identified.
Antenor Silva,
President and CEO of MBAC stated "We are excited about the results of this
preliminary study. The results warrant further geological studies using the
public domain data available and geological modelling in the vicinity of
sylvinite intersections identified within our claim areas. The long term
potential value of the Coastal Potash Project will complement our near term
focus on the Itafos phosphate project which we expect to generate significant
cash flow growth starting in 2012".
Update on Itafos
The Company
continues to advance its Itafos phosphate project ("Itafos" or "Arraias-Campos
Belos Project"). MBAC expects to have a feasibility study completed for Itafos
in April 2010. As part of the feasibility study, MBAC will provide an updated
preliminary resource estimate which is being completed by Wardrop.
About MBAC
Fertilizer Corp.
MBAC Fertilizer
Corp. is focused on becoming a significant integrated producer of phosphate and
potash fertilizer in the Brazilian market. In October 2008, MBAC indirectly
acquired all of Itafos Mineracao Ltda ("Itafos"), which holds a 100% interest
in the Itafos phosphate mine and related infrastructure (the "Arraias-Campos
Belos Project"). MBAC has also recently expanded its property portfolio in
Brazil with the acquisition of two potash exploration projects and one
additional phosphate exploration project. MBAC is continuing to search for
additional fertilizer opportunities in the Brazilian and other Latin-American
markets. Strong agricultural fundamentals in Latin-America combined with unique
opportunities in Brazil are expected to provide attractive growth opportunities
for MBAC.
To learn more about
MBAC, please visit our website www.mbacfert.com.
Cautionary
Note Regarding Forward-Looking Information
This press
release contains ''forward-looking information" within the meaning of
applicable Canadian securities legislation. The forward-looking information
contained in this press release includes, but is not limited to, statements
with respect to the conclusions drawn in the AMEC study, the long-term
potential value of the coastal potash project, MBAC's intention to advance the
Coastal Potash Project to the next stage of development, MBAC's vision to
become a significant integrated producer of phosphate and potash fertilizer in
the Brazilian market, and MBAC's expectation that strong agricultural
fundamentals in Latin America will provide attractive growth opportunities.
The
forward-looking information contained in this press release is based on the
opinions, assumptions and estimates of management and third party sources,
which are considered to be reasonable and accurate as at the date the
information is presented, and are inherently subject to a variety of risks and uncertainties
and other known and unknown factors that could cause actual events or results
to differ materially from those projected in the forward-looking information.
These factors include various exploration and development risks, environmental
risks and hazards, uncertainty with respect to current global financial
conditions, uncertainty with respect to the estimation of mineral reserves and
mineral resources, the need for additional resources, uncertainty with respect
to inferred mineral resources, insurance and uninsured risks, potential
increases in production costs, competition within the mining industry and, in
particular, the fertilizer production business in Brazil and elsewhere, the
need to obtain additional capital, fluctuations in currency values, the ability
to effectively integrate any future acquisitions into its business structure,
uncertainty with respect to governmental regulation of the mining industry,
risks relating to foreign operations, labour and employment risks, dependence
upon key management personnel and executives, possible conflicts of interest
with respect to directors and executive officers who also serve as directors
and/or officers of other companies involved in natural resource exploration and
development, climate change, and volatility in the Company's stock price.
Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors that cause
actions, events or results not to be anticipated, estimated or intended. There
can be no assurance that forward-looking information will prove to be accurate,
as actual results and future events could differ materially from those anticipated
in such information. Potential investors are cautioned not to place undue
reliance on forward-looking information. The forward-looking information
contained in this press release is included for the purpose of assisting
potential investors in understanding the Company's expected financial and
operational performance and the Company's plans and objectives and may not be
appropriate for other purposes. Potential investors should conduct their own
investigations as to the suitability of investing in securities of MBAC.