TORONTO, May 13, 2013 /PRNewswire/ --
Verde Potash (TSX: "NPK")
("Verde" or the "Company") is pleased to provide the following
corporate and strategic update. The Company has made significant
progress in advancing the Cerrado Verde project and is considering
running a semi-commercial scale demonstration plant at its Cerrado
Verde site in Minas Gerais, Brazil.
Cerrado Verde project progress
The Company has made considerable progress with regard to the
engineering of the Cerrado Verde KCl process. Key developments:
- The Company has processed in excess of 120 tonnes of potassium
silicate ore feedstock between its own pilot plant in Belo Horizonte, Brazil and FLSmidth's facility
in Allentown, PA.
- The Company and its third party engineers have agreed on all
key operating parameters for the potassium silicate to KCl process
including kiln residence time, process temperature and the specific
mix of potassium silicate and reagents.
- FLSmidth has offered performance guarantees for a rotary kiln
for the Company's potassium silicate to KCl process at a size less
than the 12,000 tonnes per day ("tpd") outlined in the Project PEA
(February 28, 2012). A performance
guarantee is a key element in the process to arrange project
finance debt. To receive similar guarantees on a 12,000tpd kiln,
and mitigate both ramp up and scale up risks, the Company is
considering running a semi-commercial scale demonstration plant.
The Company is also in discussions with other kiln suppliers in
order to evaluate alternatives.
- Veolia Water Solutions & Technologies ("Veolia HPD"), a
leading supplier of evaporation and crystallization technologies,
has successfully completed all necessary testing and is ready to
supply evaporation and crystallization equipment at any scale Verde
desires for its commercial plant.
Pedro Ladeira, Chief Operating
Officer, commented: "Securing a performance guarantee from Veolia
HPD for any commercial scale of the hydro portion of our process is
a significant achievement. With regard to pyroprocessing, the KCl
technology is proven, and studies to mitigate scale up risks are
being carried out in order to secure additional performance
guarantees from FLSmidth and arrange project finance."
The Company no longer expects to publish its Bankable
Feasibility Study during Q2 2013. Management is considering running
a demonstration plant and is also considering increasing the scale
of the Phase II and Phase III expansions in order to ultimately
move to a scale of 4.8 million tonnes. Phase I of the project will
remain at 0.6 million tonnes per year in order to minimize upfront
capex. Management expects to provide a revised timeline in the near
future.
Commenting, President and CEO, Cristiano
Veloso, said: "Verde remains focused on advancing the
Cerrado Verde project and delivering a large-scale KCl operation.
Management believes that the operation of a demonstration plant can
act as a significant value creator for the Company, as lenders and
potential strategic partners will have an opportunity to observe
the conversion of potassium silicate ore to KCl calcine at a
semi-industrial scale here in Brazil."
Board Transition
Verde will be announcing the addition of new directors shortly
with strong backgrounds in project construction, operation and
finance and deep relationships in the Brazilian capital markets.
The Company wishes to announce that Peter
Gundy and Jed Richardson have
resigned their board seats. Management and the Board wish to
acknowledge Mr. Gundy and Mr. Richardson's significant contribution
over the past four years and to wish them well in their future
endeavours.
Milson Mundim, Chief Financial
Officer, will be leaving the Company in the next three months to
join a private Brazilian company. The Board wishes to thank Mr.
Mundim for his service and to wish him well in his future
endeavours.
Off-take agreements
The Company has received significant interest in off-take
agreements from a number of Brazilian counterparties. Given the
review of project timelines currently on-going, Verde will delay
signing any off-takes until a revised project schedule is
announced.
Conference call
The Company will host a conference call today at 5:00pm Toronto
time (6:00pm Brazil time) reviewing recent progress at
Cerrado Verde. To access the conference call, please use the dial
in numbers and access code below. A recording of the call will be
made available on Verde's website (http://www.verdepotash.com)
approximately one hour after the call.
US/Canada toll free:
1-888-947-3988
Brazil: +55-11-3957-0448
Chile: +56-2-938-2495
Finland: +358-9-3158-2218
UK: +44-20-3026-6776
International: +1-214-416-0400
Passcode: 5763219
About FLSmidth
Since 1882, FLSmidth has been the leading supplier of equipment,
services, and expertise for the cement and mineral industries. With
more than 15,000 employees and local presence in 50 countries,
FLSmidth is a leading engineering company listed on the NASDAQ OMX
Exchange Copenhagen.
About Veolia Water Solutions &
Technologies
Veolia Water Solutions & Technologies is the global leader
in large-scale, highly integrated process solutions utilizing HPD
evaporation and crystallization technology. Veolia has more than
10,000 employees and generated revenue of $2.3 billion in 2011.
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
