Feronia Inc. Starts Sale of Rice Grown by Its Arable Farming Operations
TORONTO, ONTARIO -- (Marketwired) -- 04/29/13 --
Editors Note: There are two photos associated with this release.
Feronia Inc. (TSX VENTURE:FRN) ("Feronia" or "the Company"), is
pleased to announce that it has commenced sales of rice grown on the
Company's arable farm in the Bas Congo province of the Democratic
Republic of the Congo.
Following quality tests, Bralima, Heineken N.V.'s wholly-owned DRC
subsidiary, has agreed to purchase 1,100 tonnes of rice during 2013.
The first 50 tonnes of rice has been delivered with a further 100
tonnes due for shipment before the end of April.
Feronia has also commenced selling rice into the local food market
through sales to Ets Kuku, a food wholesaler. The premium grade rice,
containing 5% or less broken grains, is being supplied on a weekly
basis in 25kg, Feronia-branded polypropylene sacks. An initial
shipment of eight tonnes has been delivered to Ets Kuku and a further
23 tonnes is being supplied each month going forward.
Fulfillment of both contracts is expected to be made from existing
stocks of rice accumulated from the Company's trial plantings which
were harvested, dried and subsequently milled by the Company, and
from current and expected future harvests.
The Company now has in place a pricing structure whereby the price it
charges for rice is determined by the quality of the product sold,
specifically, the percentage of broken grains. The prices that the
Company is achieving are consistent with earlier estimates and at a
significant premium to global rice prices. The Company anticipates
selling to additional counterparties over the course of time.
Ravi Sood, Chairman of Feronia Inc. commented: "It is hugely
satisfying to commence sales of our locally-produced rice in the DRC
and a massive achievement to do so just two years after we commenced
our arable farming operation.
"The pricing structure we have in place and the prices we are
achieving clearly demonstrate the substantial local demand for
quality rice and the commercially compelling business opportunity
before us. We are in advanced discussions with other potential buyers
in the DRC and believe that Feronia will play a major role in helping
the DRC become self-s
ufficient in staple foods such as rice."
About Feronia Inc.
-- Feronia Inc. is a large-scale commercial farmland and plantation
operator in the Democratic Republic of the Congo ("DRC").
-- The Company uses modern agricultural practices to operate and develop
its oil palm plantations and arable farming business division.
-- Feronia believes in the immense agricultural potential of the DRC for
high-quality foodstuffs and edible oils given its ideal climate,
excellent soil and highly skilled and experienced workforce.
-- Feronia's management team is comprised of senior agriculturalists with
extensive experience in managing both plantations and large-scale
mechanized farming operations in emerging markets.
-- Feronia is committed to sustainable agriculture, environmental
protection and providing support for local communities.
-- For more information please see www.feronia.com.
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may" and "will". There can be no assurance that such statements will
prove to be accurate; actual results and future events could differ
materially from such statements. Factors that could cause actual
results to differ materially include, among others, regulatory risks,
risks inherent in foreign operations, commodity prices, competition
and investments having no history of operations. Most of these
factors are outside the control of the Company. Investors are
cautioned not to put undue reliance on forward-looking information.
Except as otherwise required by applicable securities statutes or
regulation, the Company expressly disclaims any intent or obligation
to update publicly forward-looking information, whether as a result
of new information, future events or otherwise.
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(as that term is defined in the policies of the TSX Venture Exchange)
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Investor Relations Manager
(44)203-327-3033 or (44)7554-521421
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