Centurion Minerals Ltd., Vancouver, B.C., announced on Oct. 18 that Ana Sofia Agri-Gypsum Project Joint Venture partner Demetra Fertilizantes SA (DFSA) has entered into an agreement with a private Argentine company to sell the crushing and ancillary equipment located at the Ana Sofia Project in Santiago del Estero, Argentina. The jv will retain the Ana Sofia concession as well as all stockpiled gypsum material, and all future gypsum mining and processing will be carried out by the purchaser.
The purchaser will pay US$180,000 for the processing plant and equipment, and has entered into a lease agreement with DFSA allowing the equipment to remain on the Ana Sofia property to process aggregate material from the nearby quarry owned by the purchaser, as well as to process gypsum from the jv concession. The purchaser has hired all employees that were previously employed by DFSA in Santiago del Estero.
“This transaction allows us to monetize an underperforming asset, eliminate our Ana Sofia liabilities, and provide continuity and continued employment for our Ana Sofia employees,” said Centurion CEO David Tafel. “In addition, the purchaser has substantial connections in the construction and agricultural industries in both Argentina and Paraguay, and has been incentivized to work with the jv to develop near-term agricultural and industrial gypsum sales.”
Centurion said as part of the agreement, the purchaser has agreed to provide fixed-fee contract mining and processing services to produce high-grade gypsum material on an ongoing basis. Mining and processing services are to be provided at cost to the Ana Sofia jv. Centurion said the market for fertilizer is expected to normalize, and that demand for agricultural gypsum will likely return to historically average levels.
Centurion also announced that it has completed sales and export of approximately 200 mt of stockpiled gypsum fertilizer material within the last few weeks through its Paraguayan distributor.
While Centurion said that the Ana Sofia Project continues as its lead investment, it is actively pursuing business opportunities in the South American cannabis industry.