VANCOUVER, B.C. -- MAY 1, 2012, MARIFIL MINES LTD. (MFM: TSX-V) ("Marifil" or "the Company") announces it has signed a consulting services agreement with Dr. Robert J. Rennie to assist the Company in its planned spin out of its potash, sulfur, and phosphate programs in Argentina into a separate publicly traded company.
Dr. Rennie received a PhD. in Soil Microbiology from the University of Minnesota. He has a very strong, 27-year background working with and managing fertilizer companies. Dr. Rennie began his career as a research scientist working for the United Nations (FAO/IAEA) and Agriculture Canada. Most recently, he served as President and CEO of Spur Ventures Inc., which was developing two phosphate deposits in China. Prior to that he spent twenty years working for Agrium Inc. (and its predecessor companies, Cominco Fertilizers and Esso Chemical), one of the world's largest fertilizer companies, where he rose to the positions of Vice President International and Vice President Corporate Affairs.
While he worked with Agrium, Dr. Rennie was Chairman of the Board of both Profertil, S.A. (a joint venture between Agrium and Repsol YPF S.A.) and Agroservicios Pampeanos, Agrium's retail agricultural network in Argentina. Profertil built the world's largest single train urea plant located in Bahia Blanca, Argentina.
Marifil has hired Dr. Rennie to assist in spinning out our potash, sulfur, and phosphate projects into a separate company ("Newco"). Newco has not yet been identified, but we are reviewing several candidates. Our plan is to identify a suitable shell company or CPC, which will become the 100% owner of our fertilizer-related claims in Argentina. Marifil will receive cash plus shares in Newco as well as retain a Net Smelter Royalty from the claims. Dr. Rennie will become President and CEO of Newco.
Brazil imports 90% of its potash (3rd largest global market) and 60% of its phosphate (4th largest market), while Argentina imports 100% of its phosphate fertilizers. Newco will have important advantages in developing these markets, including lower transportation costs to the market as compared to other global suppliers, probably lower operating costs, and since both countries belong to MERCOSUR, a trade treaty allowing a duty-free export and import of commodities between these countries.
Mr. John Hite reports, "We are very pleased and excited that Dr. Rob Rennie has agreed to help us develop this new fertilizer company. Rob has worldwide experience in working with and managing fertilizer companies in emerging economies and has important business contacts throughout the agricultural industry. Our plan is to make Newco, which we tentatively plan to re-name as Marifil Fertilizers Ltd., an important force in Argentina agriculture."
"Dr. Rennie worked for seven years in Argentina so he knows the culture, social mores, and business environment. Further, he is fluent in Spanish. We believe all these attributes make him the ideal candidate to make our new company a huge success."
"We feel that the market is not giving Marifil credit for its potash, sulfur, and phosphate assets. Spinning these assets out will not only create more value for our shareholders but will also simplify the Marifil story by allowing us to focus on our base and precious metal assets."
This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. and by Richard Walters, Vice President under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101.
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Contact: Hugh Oswald, Investor Relations, hugh@ascentacapital.com Vancouver, B.C. (604) 684-4743 ext. 243
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