FMN:CC - Fidelity Agrees to Purchase 75% of Greensands Australia Pty Ltd
(TheNewswire)
Vancouver, BC - TheNewswire- March 22, 2023 - Fidelity Minerals Corp. (TSX-V:FMN ) ( FSE:S5GM ) ( SSE:MNYC) (“ Fidelity ” or the “ Company ”) ispleased to announce that further to the news release from February 10,2023, where the Company announced a purchase fifty per cent (50%) ofGreensands Australia Pty Ltd (GAL), the Company has agreed to increaseits ownership to seventy-five percent (75%). On March 16, 2023, GALreceived an exploration licence covering the Florina Greensand Projectin the Northern Territory, Australia. The other 25 per cent is beingacquired by Lions Bay Capital Inc. (“LBI”, “Lions Bay”), whichis the largest 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 3 million ordinary common shares at $0.06 pershare, which will be restricted from trading for one year;
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Agree to fund its seventy-five per cent share of Stage1 costs estimated to be AUD $250,000 (Fidelity’s share AUD$187,500);
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Agree to fund its seventy-five per share of Stage 2costs estimated to be AUD $1,000,000 including a scoping study(Fidelity’s share estimated to be AUD $750,000);
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Upon completion of the scoping study, issue anadditional 3 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) (Fidelity’s share estimated to be AUD $750,000). Anyshares issued would be issued at a floor price of $0.06.
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GAL must pay a royalty of the lesser of AUD $4 pertonne or 5% of the net sale price of products sold on the first250,000 tonnes of production from the project (the “Royalty”). TheRoyalty will be reduced to AUD $2 per tonne after the initial 250,000tonnes. The Royalty cannot exceed 5% of the sales price of theproduct. Otherwise, the Royalty shall be paid on industry standardterms and conditions, to be documented within a formal RoyaltyAgreement.
The acquisition remains subject to the satisfaction ofcustomary conditions before closing, including exchange approval forthe issuance of common shares. On completion Mr John Canaris will beinvited to join the board of Fidelity and remain General Manager ofGreensands Australia.
Fidelity’s management team has extensive fertilizerproject development experience and is excited to have negotiated theacquisition of this new high value fertilizer opportunity. The recentadoption rate of greensand fertilizers by the agriculture sectorsuggests that greensand fertilizer uptake is poised for major growth, and that Fidelity will be rapidlypositioned to participate in this environmentally responsiblegrowth.
Fidelity remains committed to advance its explorationefforts at the Las Huaquillas Project in Peru by completing drillpermitting, environmental studies, and negotiate access to undergroundworkings against the current political and social back drop in Peru.Fidelity hopes to progress these items during 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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