MBAC provides update on the progress of the Itafós Arraias SSP Project

About this update from Itafos Inc

[{"type":"text","content":"\n\n\nTSX:MBC\nOTCQX:MBCFF\nShares Outstanding:152,029,492\nFully Diluted:161,252,908\n\n\nTORONTO, June 13, 2013 /CNW/ - MBAC Fertilizer Corp. (\"MBAC\" or the \"Company\") (TSX:MBC and OTCQX:MBCFF) is pleased to provide a progress report on the completion of\n construction and the start up of operations for the Itafós Arraias\n Single Super Phosphate (\"SSP\") Project (\"Itafós\" or the \"Itafós\n Project\"):\n\n\nNear completion of construction and at current trends the Company\n expects the construction to be completed in the next several weeks,\n consistent with its previous guidance.\n\n\nCost to completion has progressed consistent with previous capital cost\n estimates.\n\n\nThe Company has produced and is stockpiling phosphate concentrate from\n the beneficiation plant and the Company is very pleased with the\n quality of the concentrate.\n\n\nThe Company expects to be in a position to deliver SSP in July with the\n ramp up of operations to reach capacity by October 2013.\n\n\nOperations team is in place and involved with the plants' commissioning.\n\n\nSales volumes of SSP to date have increased from 35,000 tonnes in the\n previous update to 50,000 tonnes.\n\n\nThe working capital needs of the Company, which is entirely for the\n operational phase as the Company begins to generate cash flow, are\n expected to be entirely funded through ordinary course working capital\n loans and other debt.  The Company has recently received credit\n approval from Banco Votorantim S.A. for an initial working capital line\n of credit in the amount of US$10 million.  The Company is also in\n advanced discussions with banks and other lenders to structure the\n balance of the working capital financing.\n\n\nManagement is entirely focused on ensuring that the transition to\n operations is smooth and efficient.  Since the management\n reorganization and realignment, the Itafós Project has progressed very\n effectively.  Antenor Silva remains focused on completing and ramping\n up the operations and Roberto Busato Belger remains solely focused on\n the sales effort.  The Company is pleased with its sales progress to\n date given that it has sold a significant amount of product prior to\n being in production.  This provides the Company with increased\n confidence that it can capture market shar...

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