Phosphoric Acid, Phosphates & Fertilizers Experts

UPDATE ON THE INSTALLATION LICENSE (LI) FOR TRÊS ESTRADAS PHOSPHATE PROJECT

Sydney, Australia, -Aguia Resources Limited ABN 94 128 256 888 (ASX:AGR) (Aguiaor the Company) is pleased to update shareholders on the permitting program for the Três Estradas Phosphate Project. Following the granting of the Preliminary License(LP) on 17October 2019 (click here to read the announcement), Aguia immediately commenced the next stage of permitting which is the granting of the Installation License (LI). The LI is the permit that authorizes the construction of the project according to detailed plans and specifications, including the programs and control measures detailed in the LP.The LI is the only major outstanding permit required to commence construction. Once the Company receives the LI from Rio Grande do Sul State Environmental Agency (FEPAM), earthworks, civil works and installation of the processing unit can begin. The Operation License (LO) is granted once FEPAM confirms that the site installation was completed strictly within the guidelines detailed in the LI.

To complete all the requirements forthe granting of the LI, Aguia’s team is actively progressing four key initiatives

1.Environmental Plans and Programs: Work continuedonthe archaeological survey duringMarch 2020. As well, a number of well-respected consultants specializing inenvironmental permitting have been short-listed to implement the mandatory environmental programs and prepareenvironmental plans for the LI. This includes general environmental management and environmental risk management programs, safety protocols, the environment and health program, environmental monitoring, the environmental audit and compensation plan, and the construction and mine closure plan. These are scheduled for filing in Q4 2020.

2.Engineering:Preparation of the detailed engineering plans for Phase 1 of thePhosphate Projectis advancing. These include detailed construction plans and descriptive memorials in accordance with the LP conditions. This work is mandatory forthe granting of the LI and should be presented to FEPAM in Q3 2020.This application willbe made following the optimization and design, mine schedulingand processing plant designs presented in the Scoping Study, that was preparedby GE21 Consultoria Mineral Ltda (GE21). See ASX release of12February 2020(click here to read the announcement).

3.National Mining Agency:Under Brazilian Mining Law,an Economic Assessment Plan (PAE) must be filed with the Brazilian Mining Agency (ANM)as part of the Mining Permitting Application process. The PAE should demonstrateboth the economic viability of the project as well as the Company’s financial capacity to implement it. The PAE approval from ANM is mandatory for the issuing of the LI. The completion of the PAE is dependent on the approval of Final Exploration Report (RFP) for the mineral covering the Três Estradas Phosphate Project (TEPP). Aguia expects to receiveRFP approval in Q3 2020,file the PAE with ANM in Q4 2020and receive ANM approval Q1 2021.

4.Land Acquisition: Proof of ownership or possession of the land properties that cover the mine site is required for the granting of the LI. Aguia must present all the supporting documentation of land negotiations for the area planned for the project, together with the mappingof all areas already acquired or leased for a time equal to or greater than the expected duration of the project. The acquired or leased properties must be characterized in accordance withthe requirements described in the land acquisition program of the Environmental Impact Assessment (EIA).

Aguia has already completed a detailed evaluation of all properties covering the project and the report includes a valuation of all properties in the project area completed by Vaz de Melo Consultoria Ltda, a well-regarded independent property valuer in the Brazilian mining sector. Aguia intends to hire a specialized land acquisition realtor to mediate the negotiations with the landowners. All the preparation activities and purchase agreements are planned to be completed by Q4 2020,with the final payment and acquisition of the properties expected to take place in Q1 2021.

More…