FERONIA INC. PROVIDES UPDATE ON DRC AGRICULTURE LAW
TORONTO, ONTARIO--(Marketwired - July 3, 2013) - Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) today provided an update regarding the new law "Loi Portant Principes Fondamentaux Relatifs a L'Agriculture" (the "Agriculture Law") promulgated by the Government of the Democratic Republic of the Congo (the "DRC") on Dec 24, 2011 and in effect as of June 24, 2012. Detailed disclosure regarding the Agriculture Law was provided most recently by the Company in its Management's Discussion and Analysis for the interim period ended March 31, 2013.
According to the Agriculture Law, the date of compliance with its provisions is June 24, 2013. As previously reported, the Company has been and continues to be involved in discussions with various levels of government in the DRC regarding the interpretation of the Agriculture Law and its application to the Company's concessions. It is not yet known whether Article 16, which purports to limit the rights of foreign corporations to farmland in the DRC, is intended to apply to existing agricultural concessions in the DRC such as those held by the Company or only to concessions granted by the DRC government after the enactment of the Agriculture Law.
Also as previously reported, the Company is aware of various reports suggesting that proposals to amend the Agriculture Law have been tabled to the DRC parliament. However, as the legislation has not been amended as of the compliance date, management of the Company has evaluated various options to allow the Company to comply with the Agriculture Law in the event that it is not amended or it is interpreted in a manner adverse to the Company's interests. At this time, management has determined that it is in the best interest of the Company to take no action.
The Company will provide shareholders with further updates as relevant information becomes available.
About Feronia Inc.
- Feronia operates large-scale commercial oil palm plantations and has commenced an arable farming operation in the DRC.
- The Company, through its subsidiaries, holds concessions on land which is owned by the DRC government and on which its oil palm plantation and farming operations take place.
- The Company uses modern agricultural practices to operate and develop its oil palm plantations and arable farming. Feronia believes in the immense agricultural potential of the DRC for high-quality edible oils, oil derivatives and foodstuffs given the suitability of its climate and soil and the availability of a skilled workforce.
- The Company's management team is comprised of experienced business administrators and 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 jobs and economic growth 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 Agriculture Law. 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, the legislative process in the DRC and risks related to foreign operations (including various political, economic and other risks and uncertainties). 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.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.