FMN:CC - Fidelity Agrees to Purchase 50% of Greensands Australia Pty Ltd
(TheNewswire)
Vancouver, BC - TheNewswire - February 10, 2023 - Fidelity Minerals Corp. (TSX-V:FMN ) ( FSE:S5GM ) ( SSE:MNYC) (“ Fidelity ” or the“ Company ”) is pleased to announce that it has entered into anagreement dated February 9, 2023, to purchase fifty per cent (50%) ofGreensands Australia Pty Ltd (GAL) which has applied for anexploration licence covering the Florina Greensand Project in theNorthern Territory, Australia. The other 50 per cent is being acquiredby Lions Bay Capital Inc. (“LBI”, “Lions Bay”), which is thelargest shareholder of Fidelity.
The Florina Greensand Project is comprised of a large,surficial deposit of the mineral glauconite, located 70 km west of theregional town of Katherine, a regional centre 260 km SSE of the portcity of Darwin that services well-developed horticulture, agricultureand cattle ranching. Katherine is serviced by major highway andrailway infrastructure connecting the state capitals of Darwin andAdelaide.
Previous test work has shown the project to containsignificant concentrations of potassium and phosphorous, the majorchemical elementals for the production of potash and phosphatefertilizers. Greensands Australia has also filed patent applicationscovering a process to “activate” glauconite, which has the effectof greatly increasing glauconite solubility. The Company believes thisprocess has high strategic potential to render glauconite as feedstockfor the production of organic potassium and phosphate fertilizers.
The Company is pleased to acquire the FlorinaGreensands project and will endeavour to accelerate Fidelity’s entryinto the rapidly growing organic, low chloride regional and globalfertilizer market in collaboration with Lions Bay.
Under the terms of theagreement with GAL, and the vendors (Mr John Canaris and TrackerGeoservices Pty Ltd), Fidelity will:
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Issue 2 million ordinary common shares at $0.06 pershare, which will be restricted from trading for one year, upon GALreceiving the exploration license;
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Agree to fund it’s fifty per cent share of Stage 1costs estimated to be AUD $250,000 (Fidelity’s share AUD$125,000);
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Agree to fund its share of Stage 2 costs estimated tobe AUD $1,000,000 including a scoping study (Fidelity’s shareestimated to be AUD $500,000);
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Upon completion of the scoping study, issue anadditional 2 million ordinary common Fidelity shares
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Should the scoping study show a pre-tax IRR of over 19per cent then the vendors will be entitled to a bonus payment of AUD$1,000,000 to be satisfied by cash and shares (with a minimum fiftyper cent cash).
The acquisition remains subject to the satisfaction ofcustomary conditions before closing, including exchange approval forthe issuance of common shares.
The Florina Greensand Project tenement application isexpected to be granted in the current quarter, and this granting willtrigger completion of the agreement. On completion Mr John Canariswill be invited to join the board of Fidelity and remain GeneralManager of Greensands Australia.
Fidelity’s management team has over 50 years ofcombined fertilizer project development experience and is excited tohave negotiated the acquisition of this new high value fertilizeropportunity. Dean Pekeski, CEO of Fidelity commented “Recentpolitical and social unrest in Peru has prompted the board to look todiversify Fidelity`s asset base. Given the commercial and marketsuccess of Verde Agritech in Brazil and the growing awareness ofnatural greensand fertilizers, the Florina Project offers an excitingexploration and agri-tech opportunity. The recent adoption rate ofgreensand fertilizers by the agriculture sector suggests that greensand fertilizer uptake is poised for majorgrowth, and that Fidelity will be rapidly positioned to participate inthis environmentally responsible growth.”
Fidelity remains committed to advance it’sexploration efforts at the Las Huaquillas Project in Peru bycompleting drill permitting, environmental studies, and negotiateaccess to underground workings against the current political andsocial back drop in Peru. Fidelity hopes to progress these itemsduring H1 2023.
About Fidelity Minerals Corp.
Fidelity Minerals Corp. has assembled a portfolio ofhigh-quality mining assets in Peru and aims to delineate majordeposits on these properties that could attract the interest ofmid-tier and major mining companies. Fidelity has a portfolio of fourkey assets in Peru and is currently focused on progressing its mostadvanced project – Las Huaquillas. Fidelity is also looking toopportunistically expand its project portfolio with accretiveacquisitions. The company is backed by an experienced management teamwith diverse technical, market, and commercial expertise and issupported by committed, and sophisticated investors focused onbuilding long-term value.
On behalf of the Board of Fidelity Minerals.
Dean Pekeski
CEO, President and Director
Email: dean@fidelityminerals.com
For more information, please visit the corporatewebsite at http://www.fidelityminerals.com or contact:
NEITHER THE TSXVENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM ISDEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTSRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWSRELEASE.
Disclaimer & Forward-LookingStatements: This news releasecontains forward-looking statements. Forward-looking statements arestatements that relate to future events or future financialperformance. In some cases, you can identify forward-lookingstatements by the use of terminology such as “may”, “should”,“intend”, “expect”, “plan”, “anticipate”,“believe”, “estimate”, “project”, “predict”,“potential”, or “continue” or the negative of these terms orother comparable terminology. These statements speak only as of thedate of this news release. This news release may also containinferences to future oriented financial information (“FOFI”)within the meaning of applicable securities laws. The information inthis news release has been prepared by our management to provide acontext to provide the reader with an outlook for our futureactivities and anticipated key milestones and may not be appropriatefor other purposes. Forward-looking statements in this announcementinclude, (but are not limited to) advancing certain key projectactivities that could represent important milestones which the Companyexpects may represent material valuation catalysts, such as theexpectation that through the assembling of a portfolio of high-quality mining assets in Peru, theCompany aims to delineate major deposits on these properties thatcould attract the interest of mid-tier and major miningcompanies. Further,forward-looking statements in this release include that FidelityMinerals Corp. is alsolooking to opportunistically expand its project portfolio withaccretive acquisitions.
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