Ag Growth International Inc. said that it has purchased two million common shares at $1.00 per share in the private company One Earth Farms Corp., a subsidiary of Sprott Resource Corp.
One Earth Farms plans to become Canada's largest, most efficient operating farm through partnerships with First Nations.
A memorandum of understanding has been signed with One Earth Farms pursuant to which AGI will supply grain handling, storage and conditioning solutions to One Earth Farms projects.
Ag Growth International Inc. (AGI) is a manufacturer of portable and stationary grain handling, storage and conditioning equipment including augers, belt conveyors, bucket elevators, drag conveyors, grain storage bins and temporary storage systems, grain handling accessories and grain aeration equipment.
Also a fund founded by former Canadian prime minister Paul Martin has put its money behind One earth Farm, a venture aiming to farm at least 50,000 acres (app. 20,000 ha) within its first year.
One Earth, which aims "to become Canada's largest, most efficient operating farm", says it intends to operate in partnership with the aboriginal, First Nations people, bringing jobs, revenues, and training.
The investment comes amid a highly-controversial dash by investors and nations with few farming resources, such as Saudi Arabia, for land to exploit a potential rise in crop prices, or improve food security.
Many projects, such as Daewoo's attempt to secure huge tracts of Madagascar, have foundered on differences between investors and local people.
One Earth was unveiled in March by Sprott Resource Corp, a Canada-based resource group, which said at the time it intended to attract additional investment to the $27.5m it was putting in.