REG - Harvest Minerals Ltd - Positive Court Ruling

Harvest MineralsAnnouncement

14/02/2023 09:00

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RNS Number : 8616P  Harvest Minerals Limited  14 February 2023

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

14 February 2023

Harvest Minerals Limited ('Harvest' or the 'Company')

 

Positive Court Ruling for the Compliance of KPFértil Sales Order by
Agrocerrado

 

Harvest Minerals Limited, the AIM listed fertiliser producer, is pleased to
provide an update regarding the Contract with Agrocerrado Produtos Agrícolas
e Assistência Técnica LTDA ("Agrocerrado"), as announced on March 8, 2018.

 

Pursuant to the Contract, Agrocerrado committed to buy a total of 36,000
tonnes including a minimum of 18,000 tonnes of Harvest's "KPFértil" for a
pre-established price over 24 months.  Effective March 8, 2020 (that is, the
effective conclusion date of the Contract), the tonnes acquired by Agrocerrado
totalled 1,800 tonnes, approximately 10% of the total minimum commitment under
the Contract.  Harvest has always contended that the failure by Agrocerrado
to acquire the minimum tonnes required constituted a breach of the Contract.

 

Consequently, in September 2020 the Company instigated legal proceedings to
recover the debt from Agrocerrado at the local civil court jurisdiction (the
"Court") in the municipality of Patos de Minas, estate of Minas Gerais.

 

On September 25, 2020, the Court issued judgment against Agrocerrado for the
full amount of the debt plus costs. Subsequently, Agrocerrado presented a
preliminary defence and applied to the Court to preclude Harvest from
enforcing the judgment.

 

On February 1, 2023, the Court provided its judgement in relation to
Agrocerrado's defence, and the Court has ruled again in favour of Harvest and
further, the Court has now determined that Agrocerrado is required to execute
the payment of R$ 2,407,690.18 million (approximately US$ 463,000) to Harvest.

 

Brian McMaster, Chairman of Harvest, said: "This recent Court ruling
reaffirms, again, Harvest's contention that it had a bona fide sales agreement
with Agrocerrado and that Agrocerrado was obligated to pay its debt.  While
we are disappointed that it has required extensive litigation to reach this
point, we are pleased with the result of the Court ruling which protects our
rights and commercial milestones. Harvest has fully provided for this amount
in its annual accounts and now we will proceed with recovery action which we
expect is the last stage in this process."

 

**ENDS**

 

For further information, please visit www.harvestminerals.net
(http://www.harvestminerals.net/)  or contact:

 

 Harvest Minerals Limited            Brian McMaster (Chairman)   Tel: +44 (0) 203 940 6625

 Strand Hanson Limited               Ritchie Balmer              Tel: +44 (0) 20 7409 3494

 Nominated & Financial Adviser       James Spinney

 Tavira Securities                   Jonathan Evans              Tel: +44 (0) 20 3192 1733

 Broker

 St Brides Partners Ltd              Ana Ribeiro                 harvest@stbridespartners.co.uk

 Financial PR                        Isabel de Salis

 

 

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