Pan American Fertilizer (CNSX: PAF) Announces Mining Lease Agreement for EL TABLEADO Property
VANCOUVER, BRITISH COLUMBIA, October 2, 2012 - Pan American Fertilizer Corp., (CNSX:PAF) ("Pan American" or the "Company") is pleased to announce that it has entered into a mining lease agreement (the "Agreement") in respect of the El Tableado property (the "Property") with Luis Peschiutta ("Peschiutta") to acquire exploration rights to the Property. The Property has a surface area of approximately 2,200 hectares and is located in the Province of Santiago del Estero in northern Argentina.
Pursuant to the terms of the Agreement, the Company has been granted the right to explore the Property for a quarry of gypsym for an initial term of 20 years and will be responsible to lead all mining exploration and exploitation activities. If, after one year, operations on the Property are not economically feasible, the Company has the right to terminate the Agreement by providing two-months notice. Both parties have agreed to re-negotiate a new agreement at the end of the term.
As compensation, effective November, 2012, the Company will pay Peschiutta the greater of (i) US$5,000 per month and (ii) US$2.00 per ton extracted from the Property per month (the "Lease Price"). The parties have agreed to re-negotiate the Lease Price every twelve months throughout the term.
The Property has not had previous exploration and is not currently permitted for exploration. The Company is in the process of applying for an exploration permit for the Property.
"The signing of the El Tableado mining lease agreement is consistent with Pan American's ongoing commitment to enhancing shareholder value through the identification and addition of strategic assets. The favorable terms of this agreement will allow Pan American to further establish itself as key player in the South American fertilizer market by increasing its current extraction potential" reported Randy Wright, President and CEO of Pan American.
About Pan American Fertilizer Corp.
Pan American is a Canadian company dedicated to providing fertilizer to a growing global market. The company is focused on the extraction of a specific type of fertilizer called calcium sulphate (also referred to as "Agricultural Gypsum"). To ensure long term development and increase shareholder value, Pan American currently plans to significantly expand its current operational objectives while expanding its asset base by acquiring additional calcium sulphate and other fertilizer related assets.
When used as a fertilizer and as a soil remediator, calcium sulphate is a soft sulfate mineral composed of calcium sulfate dihydrate which is extremely rich in sulphur and calcium. When dissolved in water, the mineral becomes calcium and sulphate sulphur ions, both of which are required nutrients for plants. Calcium sulphate plays a vital role in establishing and maintaining good chemical balance in soil, water and plants, specifically with healthy root development. Ultimately, calcium sulphate increases overall crop quality and yields. www.PAFertilzer.com