Gypsum industry news

Argentina: Centurion Minerals is in the process of buying the remaining 50% share in the Ana Sofia Agri-Gypsum Project from its joint-venture partner Demetra Minerals. The final transaction will be subject to shareholder and regulatory approval.

"Owning 100% of the Ana Sofia Agri-Gypsum Project has been our goal since we were first introduced to the project. Despite unprecedented weather-related disruptions for the agricultural industry in South America in 2017, we see these short-term challenges as long-term benefits that will drive increased agri-gypsum demand," said Centurion's president and chief executive officer, David Tafel.

Argentina: Demetra Minerals, the joint venture partner of Canada's Centurion Minerals, has entered into a purchase agreement for both a primary crushing facility and a secondary crushing unit for its Ana Sofia gypsum-mining project in Santiago del Estero. Once operational the pilot plant will process up to 40,000t/yr of gypsum for agricultural markets.

At present, upgrading and refurbishing of the primary crusher is underway and manufacturing of the secondary crusher is on-schedule. Demetra anticipates the crushers will be transported to the project site in early October 2016. Site preparation, including clearing, compaction and access road is nearing completion and concrete foundations are being installed in preparation for mounting of the crushing facility.

All mining extraction, environmental and export permits are in place to operate the plant and Demetra's fertiliser distributor in Paraguay has reconfirmed an off-take agreement to purchase up to 50,000t/yr of agricultural gypsum material at the current market price.

"We are extremely pleased with the advances our Argentine partner has made in designing and developing a low cost pilot plant operation. This initial plant facility will allow us to fine-tune the material delivery, crushing and processing operations while we complete initial and subsequent resource estimates of the property. Having a sales distribution arrangement in place will allow us to generate revenue offsetting the cost of resource delineation, operational expenses and processing expansion," said Centurion CEO, David Tafel.

The Ana Sofia project comprises two mining concessions of 50 hectares in size within a larger (approximately 500 hectare) exploration permit area. Trenching and test pit sampling work completed by joint venture partner Demetra Minerals in 2014 - 15 and Centurion in 2016 identified multiple, high grade, near surface gypsum layers. Small scale producers located in the vicinity are currently extracting agricultural gypsum and selling to fertiliser distributors and farmers.

Canada: Pan American Fertilizer Corp has signed a non-binding Letter of Intent to acquire Demetra Minerals, a Vancouver-based, privately-held junior fertiliser company developing agricultural gypsum products for the Cono Sur markets of Argentina, Paraguay, Bolivia and Brazil.

In the proposed transaction, a new seven-member board of directors will be composed of three nominees from each of Pan American and Demetra plus a mutually agreed 7th independent director. Gregg Jensen of Demetra would be appointed as president and CEO, Sebastian Cattaneo as COO and Jeremy Wright as CFO. Robert Rennie would remain as the chairman. Pan American and Demetra would consolidate all assets and debts.