TORONTO, ONTARIO--(Marketwired - Apr 29, 2013) -
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-sufficient 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.
To view the photos associated with this release, please visit the following links: