PHOSPHATE: MBAC injecting up to $51.7M in Brazilian mine

BRAZIL – MBAC Fertilizer Corp. of Toronto has raised gross proceeds of $51.7 million in a bought deal private placement, including a partial exercise of the underwriters 'option. The company issued approximately 23.48 million shares at a price of $2.20 per share.

The bulk of the net proceeds of the offering will be used for the completion of the Itafós phosphate project in the central part of the country. MBAC purchased the small existing mine in 2008 and set about redeveloping it as the Itafós Arraias single super phosphate project. A new, much larger mine and mill, a sulphuric acid plant, an SSP plant and a granulation plant will begin operation later this year. The annual production rate is 500,000 tonnes of SSP. A second phase of development could double the yearly output as early as 2016

The Itafós project has a proven reserve of 16.0 million tonnes at 5.09% P₂O₅ and a probable reserve of 48.9 million tonnes grading 5.07% P₂O₅.

Details are available at MBACfert.com.