(Ecofin Agency) - GB Minerals Ltd, a Canadian mining company planning 25 years of low-cost operation on high grade phosphate in Farim, Guinea Bissau announced on 21 July having received an advance of CAD 1 million from its main shareholder A.B. Aterra Resources Ltd.

The mining company listed in Toronto intends to use these funds to finance its expenditures in the development of the Farim project and to handle, amongst other things, its obligations and financial commitments.

This is a financing operation carrying a 4% p.a. interest rate, maturing on 31 January 2017, which will be refunded through ordinary shares or in cash at the discretion of GB Minerals or A.B. Aterra.

The Farim phosphate project is a world class asset with the potential to produce run-of-mine ore containing 32% phosphate with a recovery rate of 60%.

It holds 64.6 million metric tons of assessed resources, containing ore at 36% phosphate with a recovery rate of minor elements of less than 0.08

GB Minerals, an exploration and development company, set a production target of 1 million metric tons of concentrated phosphate per year in this project located in the North-East of Guinea Bissau.