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Aguia Resources (ASX:AGR) closes June quarter with great strides across projects

Summary

  • Aguia Resources (AGR) continued to advance work across its phosphate as well as copper landholdings.
  • AGR has continued the marketing of its branded Pampafos® natural phosphate fertiliser with significant agronomic results received.
  • AGR has significant activities planned to be undertaken across its project portfolio in the coming months.

Aguia Resources Limited (ASX:AGR) has been continuing the development of its plan to progress its phosphate project, TEPP, and the Andrade Copper Project into production.

During the quarter ended 30 June 2021, numerous key events unfolded for AGR, and the Company also achieved various milestones.

Let us look at some of the key developments during the period.

Public civil action concerning TEPP

AGR is facing a key challenge of a public civil action filed by a Federal Public Prosecutor (FPP) concerning the TEPP. The proceedings might delay the further process of securing various approvals and advancing the TEPP.

DETAILS AT: Aguia Resources (ASX:AGR) rises on ASX upon strengthening stance amid legal proceedings

However, AGR is open to engaging with the FPP to resolve the matter and settle these issues at any time.

AGR continues to advance crucial activities to proceed the TEPP into production and awaits the granting of the Installation Licence (LI). Once the site installation is complete as per the guidelines specified in the LI, the Company shall then be granted the Operation Licence (LO).

Key Activities at TEPP (Source: AGR Announcement 27/07/21)

AGR remains at the conclusive phases of project land acquisition, and the Company has secured 10 properties out of the 11 properties encompassing the TEPP area.  

Marketing of Pampafos® and agronomic tests

AGR has been experiencing an ever-increasing favourable response through the promotion of its Pampafos® fertiliser. The Company received numerous expressions of interest from growers and agronomists, evident from a meeting held with more than 70 interested parties in attendance.

Pampafos® packaging (Source: AGR Announcement 27/07/21)

AGR had engaged Integrar Gestão e Inovação Agropecuária (Integrar) to undertake agronomic efficiency tests on the phosphate fertiliser products from the TEPP. The application of Pampafos® and Lavrato® to the rice crops delivered yields of up to 99.8% of those attained through regular fertilizers.

Advancing the copper assets

The Andrade Copper Project is the most advanced copper project in AGR’s portfolio, which saw an upgrade in the mineral resources with an Indicated Resource of 18Mt grading 0.41% copper and an additional 4Mt of Inferred Resource grading 0.53% copper for a total of 22Mt grading 0.43% copper.

Rock samples collected from AGR’s copper targets (Source: AGR Announcement 27/07/21)

Besides this, an initial scoping study of the deposit indicated favourable economic results along with compelling results from the preliminary economic assessment.

The six other copper exploration targets have undergone a variety of exploration programs. Out of these, Carlota is the most developed target is ready to be drill tested, and where a shallow ground geophysics anomaly highlights the copper and gold-in-soils anomaly.

Geological map of the Rio Grande Copper Belt (Source: AGR Announcement 27/07/21)

The substantial and strategic expansion in AGR’s landholding aims to cover further copper occurrences, and the new areas shall undergo geological mapping and initial scouting to select upcoming targets.

Sources of finance

AGR raised around AU$4.07 million through issuing around 45,236,444 shares at a per share price of AU$0.09 under a Private Placement.

Also, a loan worth AU$3.75 million to AGR was approved by the Board of the Development Bank of Southern Brazil in early June 2021. This loan was aimed at CAPEX financing for the TEPP, which is around AU$7.37 million.

The loan finances just over 50% of the CAPEX, and the construction of the TEPP is anticipated to take 6-8 months upon the receipt of the LI.

RELATED: Aguia Resources (ASX:AGR) Lodges an addendum to the Bankable Feasibility Study for the TEPP Project

Upcoming activities at TEPP

At present, AGR is engaged in creating additional agronomic tests in collaboration with the Federal University of Pelotas (UFPEL) and the Federal University of Rio Grande do Sul (UFGRS).

Besides this, AGR has inked a contract addendum with Integrar for the expansion of the existing tests at Capivari do Sul Agronomic Station for two years and is planning to conduct agronomic tests in important locations throughout RS.

AGR’s technical staff believe that it is important to undertake tests in different soils, on different crops, and with varying dosages to understand the product performance, steer the product positioning in the market and assist in upcoming sales.

Expected moves during the September quarter

In the September quarter, AGR looks forward to presenting its defence in relation to the legal proceedings. The Company continues to maintain an inclination to engage with the FPP in resolving the matter and settling the concerns raised.

AGR also plans to take forward the publicity of its Pampafos® and shall advance negotiations with prospective clients, including cultivators, co-operatives, agronomists, as well as other distributors.

AGR also looks to undertake additional surface mapping and sampling for the advancement of the exploration at regional targets and copper projects.

AGR shall also look at the opportunity of taking ahead the proposed exploration and infill drilling.

The AGR stock was noted at AU$0.037 on 28 July 2021 at 2:07 PM AEST.

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