FERONIA ANNOUNCES BARGING OPERATION AT YALIGIMBA
TORONTO, ONTARIO – June 1, 2011: Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) is pleased to announce that has now established the necessary barging capacity to transport all fruit produced at its Yaligimba Plantation to its mill at Lokutu Plantation.
“Oil production at Yaligimba Plantation had been suspended since December 2008 due to the decommissioning of the Yaligimba palm oil mill. In February of this year we commenced barging operations between Yaligimba and Lokutu allowing us to open up production from the Yaligimba location” said Bill Dry, COO of Feronia’s Oil Palm Division. “The Yaligimba plantation includes approximately 30% of the mature planted hectares at Feronia’s oil palm operation. Opening up barging between the two allows us to significantly increase the capacity utilization at the Lokutu mill, operating efficiencies and oil production from the operation. In May we sourced and contracted the necessary capacity to barge the plantation’s fruit to the Lokutu palm oil mill. With the proceeds from the March 2011 financing we intend to build a new 60 tonne per hour palm oil at the Yaligimba Plantation in two phases. The first phase will be completed in 2012. This will eliminate barging costs and increase total milling capacity by approximately 100% with completion of the initial phase and by 200% with completion of the second phase. These capacity additions will handle the expected crop until approximately 2022.”
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”, “will” and include without limitation, statements regarding the stated use of proceeds; plan of operations and comparative advantages; and benefits of this investment. 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.
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