TORONTO, ONTARIO -- (Marketwire) -- 06/29/10 -- Migao Corporation (TSX: MGO), a leading producer of specialty potash fertilizers for the Chinese market, is pleased to announce that it will be constructing a new 40,000 tonne per year potassium sulphate fertilizer production facility at its existing Changchun Migao location in Jilin Province, China.
'Changchun has shown very stable pricing and growing demand as this region continues to develop its agricultural and industrial activities,' said Mr. Liu Guocai, Migao's President and CEO. 'Since early 2008, Changchun Migao has been producing 40,000 tonnes of potassium sulphate and approximately 50,000 tonnes of hydrochloric acid. The expansion doubles our production capacity at this location and, taking into account other construction projects well under way at other locations in China, will result in a 30% increase in Migao's total production capacity.'
The new 40,000 tonne per year potassium sulphate production facility is scheduled for completion in the fourth quarter of calendar 2011. Land for the project was purchased as part of the original land use rights secured in 2007. The capital budget to complete the expansion is approximately CAD $5 million.
Changchun Migao is a wholly owned subsidiary and when fully operating, will produce 80,000 tonnes of potassium sulphate and approximately 100,000 tonnes of hydrochloric acid annually.
Migao is currently producing 320,000 tonnes of capacity for its two core potash-based fertilizers. With the addition of a 40,000-tonne potassium nitrate 50/50 joint venture with SQM expansion at Sichuan Migao later this year and a new 40,000 tonne potassium sulphate facility near Shanghai in early 2011, Migao will have production capacity of 420,000 tonnes. This figure does not include the co-products ammonium chloride or hydrochloric acid nor does it include 100,000 tonnes of specialty compound fertilizer produced annually.
Annual Meeting of Shareholders
Migao's Annual Meeting of Shareholders is today, Tuesday June 29th at 4:30pm at the King Edward Hotel, Sovereign Ballroom in Toronto, Canada.
Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate and potassium sulphate) and specialty compound fertilizers to China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Migao's Sichuan facility is ISO 14001 certified, an international environmental management standard. Please visit www.migaocorp.com for further information.
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This news release may include forward-looking statements within the meaning of certain securities laws, including the 'safe harbour' provisions of the Securities Act (Ontario) and other provincial securities laws in Canada. These forward-looking statements include, among others, statements with respect to our objectives and goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words 'may', 'will', 'could', 'should', 'would', 'suspect', 'outlook', 'believe', 'plan', 'anticipate', 'estimate', 'expect', 'intend', 'forecast', 'objective', and 'continue' (or the negative or grammatical variations thereof), and words and expressions of similar meaning, are intended to identify forward-looking statements.
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We caution that the foregoing list of important factors that may affect our future results, performance or achievements is not exhaustive. When reviewing our forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found under the 'Risk Factors' sections in our Annual Information Form and annual MD&A and elsewhere in our filings with Canadian securities regulatory authorities. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. We cannot assure readers that actual results, performance and achievements will be consistent with these forward-looking statements, and the differences may be material. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.
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Vice President Corporate Finance
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Chief Financial Officer
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