Aguia Resources (ASX:AGR) has executed an agreement with the Regional Development Bank of the Far South opening a credit line for R$7.2 million ($2.02 million) with R$6 million intended for refurbishment of the DB processing plant and opening of the Tres Estradas Phosphate Mine in Brazil.
The loan will be issued to Aguia’s subsidiary, Aguia Fertilizantes, across three tranches over a 10-year term, holding an interest rate of 4.91%.
The plant capacity is expected to double in years two to three with the installation of a second processing circuit at the leased site, which may cost in the order of $4 million.
Executive Chairman Warwick Grigor says the project capex is now 85% funded, prior to working capital requirements with a total project capex estimated at $2 million.
“The acceptance of the terms from the Regional Development Bank is a major undiluted step, opening the pathway to the development of the Tres Estradas Phosphate Mine for production in 2026,” Grigor says.
“High phosphate prices suggest a gross cash profit margin in the order of 200%. Getting this sort of return on such a simple mining operation is truly noteworthy.”
Aguia, which has a market capitalisation of $34.36 million, has begun site works across the mine site, while progressing the operational licence documentation to be completed and submitted to the environmental protection foundation, Fundação Estadual de Proteção Ambiental (FEPAM) by late December 2025.
The site estimates an output of more than 160,000 tonnes per annum of pampafos, which is the company’s organic phosphate product used as a fertiliser.
Aguia has executed three letters of intent with customers to purchase a total of 15,000 tonnes of P2O5 in 2026, and is negotiating bulk offtake agreements with potential customers.
Trading Economics reports the chemical element of phosphorus to currently trade at ¥1,025 ($220) per tonne.
Aguia Resources is a phosphate and gold explorer focused on developing its assets in Brazil and Colombia. Its phosphate project is located in the rich agricultural heartland of Rio Grande do Sul in southern most Brazil about three hours from the capital Port Alegre.
Aguia has a resource of 105 million tonnes of phosphate of which the current project will only consume 5Mt. It has the ability and the opportunity to build a substantial agricultural business with a potentially diverse range of products given its geographic location
Write to Maddison Elliott at Mining.com.au
Images: Aguia Resources
