Aguia (ASX:AGR) issues update on Brazilian phosphate project

Highlights

• Aguia Resources is gearing up to commence construction of its Brazilian phosphate project with advances on settlement route in the ongoing legal battle.
• The firm is taking the steps required to close the Public Civil Action (PCA) relating the environmental licensing for its phosphate project.
• The PCA was filed by the FPPO against the firm and the State Environmental Protection Agency over EIA for Aguia’s Brazilian phosphate project.
• Aguia is holding talks with the involved parties to reach a possible settlement in the PCA.

In the latest announcement, multi-commodity company Aguia Resources Limited (ASX:AGR) revealed that it is actively engaged in advancing its preparations for construction of its phosphate project in Rio Grande do Sul, the southernmost state of Brazil.

The company has also elaborated on the recent development in the Public Civil Action (PCA) relating the environmental licensing for its phosphate project. Aguia has stated that it is actively involved in a conciliatory process with all of the parties to close the case at the earliest. The talks of negotiations are underway. It is expected that the involved parties will be meeting again within the next few days to hold settlement discussions, highlights the company update.

Details of the PCA

The PCA has been filed by the Federal Public Prosecutor’s Office (FPPO) against AGR and the State Environmental Protection Agency regarding Environmental Impact Assessment (EIA) for Aguia’s Phosphate Project.

Aguia believes that there has been a positive development in the case, as the involved parties had put forward their interests in settlement of the case during the first conciliation hearing of the case last week.  

Aguia’s slant on commencing construction at Phosphate Project

Aguia aims to end the litigation and progress with the implementation of its phosphate project. According to the company, a settlement in the case will allow Aguia to begin construction.

Amid the legal battle, the company is actively progressing the preparations for construction. Aguia has hired a Project Manager as well as a sales team with 35 years of experience in agricultural sales and marketing.

Also, Australian mining consultancy firm Harrier has been appointed by Aguia for an advisory role to the project. Harrier will render an independent oversight to the Board. Harrier has strong links to experienced mining personnel in Brazil, highlights the company update.

Aguia has also wrapped up work on clarifying sourcing agreements, confirming supply chain stability, the availability of materials and equipment and updating prices as part of the preparation for the updated Banking Feasibility Study (BFS).  

The BFS is likely to be announced in the month of March.

AGR shares traded at AU$0.053 on 7 February 2023.