Jun 5 2015
DuSolo Fertilizers Inc., ("DuSolo" or "the Company") is pleased to announce that it has entered into a two-year, 60,000 tonne sales contract (30,000 tonnes per year) (the "Contract") for its 15% P2O5 Direct Application Natural Fertilizer ("DANF") product with a local Brazilian fertilizer distributor (the "Buyer"). Over the term of the Contract, the Buyer has agreed to pay BRL230 per tonne for total proceeds of BRL13,800,000 or approximately C$5,500,000 (all figures as per the June 3, 2015 exchange rate).
"We are happy to be entering into yet another significant sales contract for this planting season," said Eran Friedlander, President and CEO of DuSolo. "Being the sole local supplier of DANF in the region, our product is in demand as it offers local farmers a high quality fertilizer at competitive prices. We are currently in negotiations with a number of local agri-businesses for our DANF product and expect to announce more sales contracts in the coming weeks."
The Buyer has made an advance payment of BRL115,000 or approximately C$45,600 for immediate delivery of 500 tonnes of DANF product. The Buyer has further committed to pay BRL575,000 or approximately C$228,500 for an additional 2,500 tonnes of DANF product, to be delivered by July 1, 2015.
This year the Company has secured the following sales contracts: 40,000 tonnes for approximately C$4,400,000 (announced January 12, 2015), 10,000 tonnes for approximately C$1,300,000 (announced April 7, 2015) and 1,100 tonnes for approximately C$102,000(announced April 21, 2015). In total, DuSolo has sales contracts in place for 81,100 tonnes of DANF product totaling approximately C$8,500,000 for the 2015 planting season, and an additional 30,000 tonnes for the 2016 planting season.
DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government, to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.
The Company's shares are publicly traded on the TSX Venture Exchange under the symbol DSF, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.
On behalf of the Board of Directors
DuSolo Fertilizers Inc.
Eran Friedlander, President and CEO