What's Happening?
Aguia Resources has secured a credit line of R$7.2 million ($2.02 million) from the Regional Development Bank of the Far South to refurbish the DB processing plant and open the Tres Estradas Phosphate Mine in Brazil. The loan will be issued to Aguia's subsidiary, Aguia Fertilizantes, over a 10-year term with an interest rate of 4.91%. The project aims to double plant capacity within two to three years by installing a second processing circuit, estimated to cost $4 million. Aguia Resources, a phosphate and gold explorer, is focused on developing its assets in Brazil and Colombia.
Why It's Important?
The loan represents a significant step towards the development of the Tres Estradas Phosphate Mine, which is expected to begin production in 2026. High phosphate prices suggest a gross cash profit margin of around 200%, highlighting the project's potential profitability. The mine is projected to produce over 160,000 tonnes per annum of pampafos, an organic phosphate product used as a fertilizer. This development is crucial for Aguia Resources as it strengthens its position in the phosphate market and supports agricultural industries reliant on phosphate fertilizers.
What's Next?
Aguia Resources will continue site works and progress operational license documentation, aiming to submit it to the environmental protection foundation by late December 2025. The company has executed letters of intent with customers to purchase 15,000 tonnes of P2O5 in 2026 and is negotiating bulk offtake agreements. The successful execution of these plans will enhance Aguia's market presence and contribute to the agricultural sector's growth.
