Aguia Resources (ASX:AGR) has signed a 10-year agreement to lease Dagoberto Barcelos’ existing fertiliser plant in Caçapava do Sul, Brazil.
The company intends to treat Pampafos ore through the facility which is located 110km from Aguia’s operated Tres Estradas Phosphate Mine site.
Under the deal, Aguia will pay $1.4 million in six separate payments, with the first payment of $34,000 due eight days after signing. This payment will be made to Dagoberto to reimburse the company for planned capital works for the site and to offset costs associated with ceasing operations through the plant.
In addition, a monthly lease fee of $43,00 is payable for the processing facility from 1 August 2025.
Aguia notes the current processing facility can treat 100,000 tonnes per year of phosphate over an eight-year period. Adding an additional hammer mill, second drying unit and minor upgrades to the system could increase annual production up to 300,000 tonnes per year.
The $49 million market capitalisation company anticipates processing the first ore by Q3 2025 and is currently fast-tracking exploration and development of two wholly owned deposits located within 9km of the plant.
Executive Chairman Warwick Grigor says the agreement is a major step forward for the company.
“Depending upon the speed of market penetration, Aguia will look to expand production at the plant as early as the start of 2026,” Grigor says.
“With Brazil largely dependent on phosphate imports, we are confident of carving out a meaningful market position in southern Brazil, the country’s pre-eminent agricultural region.
“We look forward to bringing on a second meaningful revenue stream this year, adding to our goal processing operation at the high-grade Santa Barbara Project in Colombia which is advancing very favourably.”
The company notes it is continuing negotiations with another processing facility in the Caçapava do Sul region for an expanded production profile from its wholly owned phosphate projects.
Aguia Resources is a multi-commodity company with pre-production phosphate projects located in Brazil and gold projects in Colombia.
Write to Aaliyah Rogan at Mining.com.au
Images: Aguia Resources
