PAN AMERICAN FERTILIZER (NEX: PFE.H, Frankfurt: 6GF) Announces Termination of Agreement with Demetra Minerals, the Resignation of Mr. Jason Birmingham and Dr. Robert Rennie

VANCOUVER, BC / ACCESSWIRE / March 20, 2015 / Pan American Fertilizer Corp. (TSX Venture: PFE.H, 6GF.F) (the “Company” or “Pan American”)

Termination of Agreement with Demetra Minerals Inc. (“Demetra”)

Demetra has exercised its right not to proceed with the proposed partnership with Pan American announced in the Company’s press release of March 02, 2015.

Neither company has been able to raise sufficient funds to proceed with the proposed project in the time frame stipulated in the non-binding Letter of Intent.

Resignation of Mr. Jason Birmingham and Dr. Robert Rennie as Directors

With the termination of the partnership between Demetra and Pan American, Mr. Jason Birmingham and Dr. Robert Rennie have resigned as directors of the Company with the effective date of March 18, 2015. The Company wishes to thank for Mr. Birmingham and Dr. Rennie for their services to the Company.

Unauthorized Removal of Mining Equipment from the Company’s Manto Blanco Mine Site

After an on-site inspection by a special advisor to the Company Pan American can now confirm that all of its mining equipment at its Manto Blanco mining site near Santiago del Estero has been removed from the site without authorization from the Company.

The Company had received conflicting reports that creditors and employees were threatening to take the equipment but had not until this time been able to confirm any loss because it did not have reliable sources on the ground in Argentina until mid-March.

The Company was unable to continue to insure the equipment after December 16, 2014 due to lack of funds but had the security of some trusted employees on site.

The removal of the equipment apparently occurred during the mid-January through February time frame on the basis of legal documents presented to senior employees at the Company’s operations. Indications from the Company’s preliminary investigation are that the equipment was then sold to legitimate purchasers who assumed the sale was officially authorized by the Company. The identity of the purchaser of some of the most valuable equipment is now known. The Company’s Argentine legal counsel has indicated that criminal prosecution combined with discussions with the purchasers will be necessary to secure the return of this equipment.

The local authorities, including the police and the provincial and federal mining ministries are aware of the unauthorized removal of the Company’s equipment.

Wendland Family Holdings, which made a loan of $375,000 to the Company in September 2013 with some of the mining equipment as security, has petitioned the Supreme Court of British Columbia to appoint a receiver over the assets of Pan American, Acclaro Mining Corporation Acclaro International Holdings Ltd and Acclaro Mining Holdings Inc. in order to seek repayment of the loan plus accumulated interest.

About Pan American Fertilizer Corp.

Pan American has been insolvent since the end of November, 2014.

On behalf of the Board of Directors of Pan American Fertilizer Corp.

Randy Wright

President and CEO and Director

E-Mail: rwright@acclarocorp.com

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Pan American Fertilizer Corp. 

ReleaseID: 427057