TORONTO, March 5, 2013 /PRNewswire/ --
Verde Potash (TSX: "NPK")
("Verde" or the "Company") is pleased to provide an update with
respect to Brazilian potash consumption and corporate activities
including the negotiation of off-take agreements with Brazilian
fertilizer buyers and the preliminary environmental permit at
Cerrado Verde.
Record Brazil Potash Consumption in
2012
ANDA, the Brazilian national fertilizer association, has
released data showing that 2012 potash consumption increased 9.3%
year-over-year to a record 8.1 million tonnes of KCl. This sharp
increase in Brazilian consumption stands in marked contrast to
global consumption which declined modestly in 2012. This marks the
second consecutive year in which Brazil was the largest importer of potash
globally. Brazil imported 93% of
the potash it consumed last year.
Brazilian potash consumption is growing faster than in other
major consuming countries. Brazil
has posted a 10-year compound annualized growth rate (CAGR) for
potash consumption of 4.7% vs. 2.3% for the world overall.
Brazil's domestic production of
potash has declined in recent years and is forecast to decline
again in 2013. The country is currently served by only one domestic
mine, which is scheduled to run out of ore in 2016.
The continuing strength of the Brazilian agriculture market,
coincident with record potash consumption and strong imports is a
testament to the need for increased domestic potash production. The
Cerrado Verde project is ideally-positioned to address this
need.
Commenting, President and CEO, Cristiano
Veloso, said: "Verde is focused on advancing the
engineering, permitting and financing of the Cerrado Verde project.
Our strong cash position ($21.2
million as at September 30,
2012) and first rate technical team provide us with all of
the resources necessary to publish our bankable feasibility study
and drive the project towards construction."
Off-Take Agreement Negotiations
The Company is currently engaged in negotiations with a number
of potential counterparties regarding an off-take agreement for the
Company's granular KCl product. The Company anticipates signing an
off-take agreement, and expects to be in a position to announce
details during Q2 2013. Verde has received expressions of interest
in an off-take from multiple groups, including fertilizer blenders
and agricultural conglomerates in Brazil.
Brazil imported 7.5 million
tonnes of potash in 2012 accounting for 93% of Brazilian
consumption. This product typically takes three to four months to
arrive at the customer's door, including 60+ days travelling by
rail, ship and truck and an additional 30+ days waiting to unload
at one of Brazil's congested
ports. Ships routed through Paranaguá, the highest volume port for
potash shipments in the country, waited a minimum of 30 days to
unload in every month of 2012.
The Cerrado Verde project is located less than 300km from
Uberaba - i.e. a four hour drive via BR-262 - a good quality
Brazilian federal highway. Uberaba is a major fertilizer blending
district in Minas Gerais state which accounted for more than
500,000 tonnes of KCl consumption in 2012. Potash buyers in
Brazil recognize the advantages
the Cerrado Verde project can offer them.
Environmental Permit
The Company has applied for a "licença prévia" (or "LP") for the
Cerrado Verde project. The licença prévia process involved the
submission of a report in excess of 1,500 pages including an
analysis of local flora and fauna, a mine reclamation plan and an
assessment of local water resources. This report was submitted on
August 28, 2012. The Company hosted a
very successful public hearing on November
27, 2012 and was pleased to host more than 800 residents
from the São Gotardo area, approximately 20km from the Cerrado
Verde project. On December 21, 2012
the state environmental agency (SUPRAM) asked Verde to provide
additional information. The Company provided this information to
SUPRAM on February 19, 2013 and is
now awaiting a decision on the LP.
About Verde
Potash
Verde Potash, a Brazilian
fertilizer development company, is focused on advancing the Cerrado
Verde project located in the heart of Brazil's largest agriculture market. Cerrado
Verde is the source of a potash-rich deposit from which the Company
intends to produce potassium chloride (KCl). In addition, the
Company is developing its Calcario limestone project, limestone
being a key raw material in the production of KCl.
About the Cerrado Verde Potash
Project
Cerrado Verde is a unique project: 1) its high grade potash rock
outcrops and is amenable to strip mining, allowing fast
construction of a scalable operation; 2) it is located in the midst
of the world's third largest and fastest growing fertilizer market;
3) it connects to Brazil's largest
fertilizer distribution districts via existing and high quality
infrastructure; 4) it has the potential to supply KCl to
Brazil's local agriculture market
from its large potash-rich deposit.
Cautionary Language and Forward Looking Statements
NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE. THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING
STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH
RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE
COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, AND STATEMENTS
REGARDING USE OF PROCEEDS. FORWARD LOOKING STATEMENTS CAN GENERALLY
BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR
"DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT
ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET",
"SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR
STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD",
"WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED".
FORWARD LOOKING STATEMENTS 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 FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS
EXPRESSED OR IMPLIED BY SAID
STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING
STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE
EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID
STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON
FORWARD-LOOKING STATEMENTS.
Readers are cautioned not to rely solely on the summary of such
information contained in this release and are directed to the
complete set of drill results posted on Verde's website
(http://www.verdepotash.com) and filed on SEDAR
(http://www.sedar.com) and any future amendments to such. Readers
are also directed to the cautionary notices and disclaimers
contained herein.
For further information:
Cristiano Veloso, President
& Chief Executive Officer
Tel: +1-(416)-866-2966; Fax: +1-(416)-866-8829;
Email: cv@verdepotash.com
http://www.verdepotash.com
Jaret Anderson, CFA, VP
Corporate Development
Tel: +1-(416)-866-2966; ext. 223; Fax: +1-(416)-866-8829;
Email: ja@verdepotash.com
