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DuSolo Fertilizers Inc. (TSXV:DSF) announced that it has entered into a purchase agreement with Quantum Fertilizantes Do Tocantins Ltda. under which it will acquire the remaining 25 percent of the Bomfim project.
DuSolo Fertilizers Inc. (TSXV:DSF) announced that it has entered into a purchase agreement with Quantum Fertilizantes Do Tocantins Ltda. under which it will acquire the remaining 25 percent of the Bomfim project. The company has also arranged a part-and-parcel private placement to fund the purchase.
As quoted in the press release:
Up until the agreement was signed, DuSolo held a 75% interest in P-Tec with the remaining 25% owned by Quantum. The Agreement in place provides DuSolo with 100% interest in the project effective immediately in exchange for future payments amounting to five million Brazilian Reals (or $2,400,000 CND at the current exchange rate on September 11th, 2014). The following is a payment schedule agreed upon by both parties:
- On October 25, 2014 – two million Brazilian Reals (BRL $2,000,000)
- On April 25, 2015 – one million Brazilian Reals (BRL $1,000,000)
- On October 25, 2015 – five hundred thousand Brazilian Reals (BRL $500,000)
- On April 25, 2016 – five hundred thousand Brazilian Reals (BRL $500,000)
- On October 25, 2016 – five hundred thousand Brazilian Reals (BRL $500,000)
- On April 25, 2017 – five hundred thousand Brazilian Reals (BRL $500,000)
The Company has also agreed to buy back 575,000 of the Company’s common shares that Quantum currently owns at a price of twenty-three (23) cents per common share for gross proceeds of $132,250 CDN.
Click here to read the full DuSolo Fertilizers Inc. (TSXV:DSF) press release. 