CALGARY, ALBERTA--(Marketwired - April 18, 2017) - GrowMax Resources Corp. (the "Company" or "GrowMax Resources") (formerly Americas Petrogas Inc.) (TSX VENTURE:GRO) announces that it has filed its 2016 audited consolidated financial statements, including the Auditor's Report thereon, and Management's Discussion and Analysis ("MD&A") relating to its 2016 year-end results. These filings can be accessed on SEDAR's website at and on the Company's website at

The following Summary of Selected Financial and Operational Highlights have been derived from the audited consolidated financial statements and MD&A. Readers are strongly encouraged to review the entire audited consolidated financial statements, including the Auditor's Report thereon, and MD&A.

All amounts are in Canadian dollars unless otherwise stated.


December 31, December 31,
($ in thousands) 2016 2015
Cash and cash equivalents $ 42,896 $ 56,671
Working capital(1) $ 49,634 $ 62,594
Year ended December 31
($ in thousands) 2016 Restated(2)
Net income (loss) from continuing operations $ (12,812) $ (2,744)
Net income (loss) from discontinued operations, net of income tax expense $ (8,060) $ (37,714)
Net income (loss) for the year $ (20,872) $ (40,458)
Weighted average number of common shares outstanding(3)
Basic and diluted 217,957,244 231,947,325
Other general and administrative expenses $ (4,276) $ (5,093)
Capital expenditures, net $ (10,777) $ (10,032)
See notes (1), (2) and (3) further below.

Stephen Keith, President of GrowMax Resources, stated, "In 2016, the Company introduced several initiatives with the objective of focusing on and enhancing the value of its primary mining assets in Peru, lowering its corporate G&A, and realizing value from the sale of its Argentina assets to deliver maximum value to its shareholders. Now that the Company has achieved these initial goals, GrowMax Resources is ready to build out its portfolio of Peruvian potash and phosphate assets. With a new management team, focused operations and a solid balance sheet, GrowMax Resources is poised for an exceptional year of advancing the development of its assets and is now looking forward to taking the necessary steps towards generating operational cash flows in the coming years."

Highlights and Recent Activities


  • Early in 2016, the Company's Peruvian subsidiary, Americas Potash Peru S.A. ("APPSA"), acquired the remaining 30% interest in the Bayovar Property. Consequently, APPSA now holds a 100% beneficial interest in the Bayovar Property.
  • The Company received the results of a Sulfate of Potash Study. The study included capital and operating cost estimates for a pilot facility, including evaporation ponds and a processing plant, for the production of 5,000 tonnes per year of soluble Sulfate of Potash "SOP". For further information, refer to the February 6, 2017 press release entitled "GrowMax Announces Results of Sulfate of Potash Study" .
  • An "Updated NI 43-101 Mineral Resource Technical Report on the GrowMax Bayóvar Phosphate
    Project, Piura Region, Peru" was filed on April 28, 2016 and a further update was filed on SEDAR on August 11, 2016. This latter Mineral Resource estimate update was based on substantially all drill holes drilled by the Company up to June 30, 2016.
  • On September 12, 2016, the Company announced its strategic plans, with additional information related to its strategic plans announced on February 16, 2017. The plan includes advancing the Bayovar phosphate project in Peru and developing plans for early cash flow.
  • The Company received the results of an independent Preliminary Economic Assessment ("PEA") for its Bayovar 7 phosphate project on the Bayovar Property located in the Sechura Desert, Peru. The results were announced on September 12, 2016 and the PEA report was filed on SEDAR on October 27, 2016. For further information, including applicable disclosures, refer to the September 12, 2016 press release entitled "GrowMax Announces Results of a Preliminary Economic Assessment for Phosphates on Bayovar 7 Concession, Peru".
  • The Company is continuing to perform tests of collected samples from the Carnallite/Kainite pilot evaporation ponds.


  • On November 10, 2016, the Company accepted an offer from Energy Operations Argentina LLC
    (the "EOA"), a private American company, for the sale of all of the issued and outstanding common shares of Energicon, the Company's wholly-owned Argentine subsidiary (the "Transaction"). The Transaction closed on November 24, 2016 (the "Closing"). The terms of the original Share Purchase and Sale Agreement were modified so that the total cash consideration (including contingent consideration) from the Transaction was Cdn$6.9 million (US$5.1 million), of which Cdn$0.1 million (US$0.1 million) was collected by December 31, 2016 and Cdn$2.8 million (US$2.1 million) was included as a receivable in other current assets at December 31, 2016 (Cdn$0.8 million (US$0.6 million) of this receivable has been collected so far in 2017). The remaining Cdn$4.0 million (US$3.0 million) is payable to the Company by EOA only if a hydrocarbon exploitation concession for Vaca Mahuida is issued within one year of the Closing. The Company no longer has any commitments or performance bonds outstanding relating to oil and gas concessions in Argentina.


  • In October 2016, the Company made the necessary filings and received the necessary approvals to make a Normal Course Issuer Bid ("NCIB") to buy-back some of its common shares, at its own discretion, commencing on October 24, 2016 and terminating on October 23, 2017 or such earlier date as all shares which are subject to the NCIB are purchased. The NCIB allows the Company to purchase up to 10,796,282 of its Common Shares. Since December 2016 and up to the current date, the Company has repurchased and cancelled a total of 2,000,000 Common Shares pursuant to the NCIB.


(1) Working capital is calculated as current assets (December 31, 2016 - $52.4 million; December 31, 2015 - $83.2 million) less current liabilities (December 31, 2016 - $2.8 million; December 31, 2015 - $20.6 million). Working capital is a non-GAAP measure and is calculated as current assets less current liabilities. Working capital is used to assess liquidity and general financial strength. Working capital does not have a standardized meaning prescribed by IFRS. It is unlikely for non-GAAP measures to be comparable to similar measures presented by other companies. Working capital should not be considered an alternative to, or more meaningful than current assets or current liabilities as determined in accordance with IFRS.
(2) Restated to reflect discontinued operations. See note 25 of the December 31, 2016 annual consolidated financial statements for further information.
(3) See section '1.2 Overall Performance - Share capital and Contributed surplus' in the MD&A for further information about the changes in common shares during the year ended December 31, 2016.

About GrowMax Resources Corp.

GrowMax Resources Corp. (formerly Americas Petrogas Inc.) is a publicly listed Canadian company (Ticker GRO on TSX-V) focused on exploration and development of phosphate and potassium-rich brine resources on its Bayovar Property, which is located in the Sechura Desert in northwestern Peru. The Company's vision is to become a leading producer of phosphate and potash fertilizer products in Peru.

GrowMax Resources owns approximately 92% of GrowMax Agri Corp., a private company that owns 100% of the Bayovar Property, which currently covers approximately 227,000 gross acres. The Indian Farmers Fertiliser Co-operative Limited (IFFCO) and its affiliates own approximately 8% of GrowMax Agri Corp.

Forward Looking Information

Certain statements contained in this Press Release may constitute "forward-looking information" as such term is used in applicable Canadian and US securities laws. Any information or statements contained herein that express or involve discussions with respect to predictions, expectations, plans, projections, objectives, assumptions or future events should be viewed as forward-looking information. Such information relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different than those results, performance or achievements expressed or implied by such forward-looking information.

In particular, statements (express or implied) contained herein or in the Company's MD&A regarding the following should be considered as forward-looking information: the Company's goals, plans, strategy and objectives; enhancing the value of the Company's assets; expected G&A costs and changes in G&A costs; generating operational cash flows and timing thereof; advancing the development of the assets; maximizing value to shareholders; the build out of the potash and phosphates assets; the results of a SOP Study; mineral resource estimates; advancing the Bayovar phosphate project and developing plans for early cash flow; the results of a PEA; testing of Carnallite/Kainite samples; and cash receivable from the purchaser for the sale of Energicon.

In addition, information regarding the reports, studies, reserve estimates and resource estimates should be considered forward-looking statements. In particular, the presence of potash and/or phosphates in samples is not necessarily indicative that potash and/or phosphates are capable of being successfully produced in commercial quantities or at all. There is no assurance reserves will be assigned for potash and/or phosphates. There is no assurance that future wells will be drilled on the Bayovar Property or that if drilled, will be successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Additional forward-looking information is contained in the Company's MD&A, and reference should be made to the additional disclosures of the assumptions, risks and uncertainties relating to such forward-looking information in that document.

There is no assurance that such forward-looking information will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements contained in this Press Release. This cautionary statement expressly qualifies the forward-looking statements contained herein and in the MD&A.

Forward‐looking information is based on management's beliefs, expectations, estimates and opinions on the date statements are made and the Company undertakes no obligation to update forward-looking information and whether the beliefs, expectations, estimates and opinions upon which such forward-looking information is based has changed, except as required by applicable law.


Contact Information:

Abby Badwi, P. Geo.
Executive Chairman
+1 587 390 7015

Stephen Keith, P. Eng.
+1 647 299 0046