Aguia surges as Tres Estradas is granted priority projects status by government
Shares in Brazilian fertiliser developer, Aguia Resources (ASX: AGR) spiked more than 5% on Thursday after the company announced that its Tres Estradas phosphate project had been granted priority project status by the Secretary of Economic Development of the Rio Grande do Sul State.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
This is an important development as it provides direct access to senior levels of government, including the Secretary of Mining and Energy, the Secretary of Treasury and Taxation and agencies involved in handling environmental issues and the provision of essential services such as electrical power.
Such is the government’s commitment to support and assist with projects that it also helps companies in identifying financing options via local development banks in coordination with the Municipal Government.
Discussing benefits that have already materialised from this relationship, Technical Director Doctor Fernando Tallarico said, “We have already seen the advantages related to having priority projects status, having made important contacts with the Secretary of Treasury to discuss potential tax incentives and the state electrical power company to discuss the connection of our project to the national electrical power grid”.
This development couldn’t have come at a better time as highlighted by AGR’s Managing Director Justin Reid who said, “As we move forward with the Bankable Feasibility Study (BFS) for Tres Estradas, developing relationships with the community and key government agencies at the state level will be a key component of ensuring that all stakeholders are on board with our plans to become a significant phosphate producer.”
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