FERONIA INC. ANNOUNCES COMMENCEMENT OF CRUDE PALM OIL PRODUCTION AT YALIGIMBA PALM OIL MILL
TORONTO, ONTARIO--(Marketwired - Oct. 17, 2013) - Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) is pleased to announce the commencement of palm oil production at its Yaligimba plantation in the Equateur province of the Democratic Republic of the Congo.
With the new Yaligimba mill now in operation, the Company has begun harvesting fresh fruit bunches ("FFB") from the 3,757 hectares of producing oil palm, aged from 4 to 25 years, at its Yaligimba plantation. This increases the total number of hectares contributing to production by 63% to 9,709 hectares (previously 5,952 hectares). It is expected that the Yaligimba plantation will achieve operating results on a per hectare basis similar to those being achieved at the Lokutu plantation.
The Yaligimba mill has an initial capacity to process 105,000 tonnes of FFB per year. A Phase 2 expansion is scheduled to commence in 2016 which is expected to provide sufficient capacity at Yaligimba to process the plantation's production though to 2021.
The Company now has fully operational mills at each of its three plantations with current combined capacity to process 220,000 tonnes of FFB per year.
Bill Dry, CEO of Feronia Inc. commented:"Commencing production at the new palm oil mill at Yaligimba is a major milestone for Feronia, its employees and the surrounding community. The original Yaligimba mill was constructed in 1946 and has been closed since 2008. Through the hard work and dedication of our staff and contractors together with the ongoing support of our shareholders, we now have a modern palm oil mill and Yaligimba is again producing crude palm oil. Going forward, Yaligimba will be a major contributor to the Company and will also benefit the surrounding communities, as the original mill did for more than half a century."
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.
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 expected operating results at the Yaligimba plantation and expansion plans for the Yaligimba mill. 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, operational risks, 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.