Harvest Minerals to acquire BF Mineraço
Remineraliser producer Harvest Minerals said on Monday that it had entered into a binding share purchase agreement to acquire BF Mineraço for a total consideration of $800,000.
Harvest Minerals stated the acquisition would see it take 100% ownership of BF Mineraço and its advanced Miriri Phosphate Project in the State of Pernambuco in Brazil, which it said would complement its existing Arapua Fertiliser Project and expand its profile into the Northeast region of the country.
The AIM-listed firm will fulfill the acquisition by a combination of cash and new shares over a period of time, with $100,000 in cash being paid upfront, plus the issue of $200,000 in new ordinary shares.
Within two years of the delivery of a NI 43-101 resource or preliminary feasibility study for the project, Harvest shall issue a further $250,000 in new ordinary shares to Harvest's vendors, while following the first sales of product from the project, it will pay a further $250,000 in cash to the vendors.
Chairman Brian McMaster said: "Given the substantial work already completed, we are confident that we can replicate the success seen at Arapua and fast-track the project to production.
"Notably, as a simple Direct Application Natural Fertiliser operation, the project also ticks the sustainable box, which is key given the growing demand for organic crop farming and increased focus on providing an all-natural solution to boost soil nutrition."
As of 1040 GMT, Harvest shares were down 1.22% at 4.05p.