TORONTO, Aug. 16, 2013 /PRNewswire/
-- Verde Potash (TSX:
"NPK") ("Verde" or the "Company") announces that, as a result of a
review by the Ontario Securities Commission (OSC), the Company is
issuing this news release to provide clarity on the Company's
previously announced performance guarantees from FLSmidth Inc. with
respect to producing KCl using a kiln of a size that can process
less than 12,000 tonnes per day ("tpd"). Further to the Company's
May 13, 2013 news release (which
announced the performance guarantees), Verde would like to clarify
that FLSmidth offered to provide performance guarantees on kilns
that can process 3,000 tpd instead of 12,000 tpd that would be
commensurate with uncertainties and risks that are inherent in a
first-time scale-up from a laboratory pilot unit. Management is not
considering the option of running a kiln that can process 3,000 tpd
since that would be small for Verde's KCl project. The Company has
filed a material change report in respect of the May 13, 2013 news release.
Since May 2013, Verde has gone
through changes to its management team and board of directors. The
new team, with its collective depth and experience, has been
reviewing strategic alternatives for developing a potash fertilizer
product to advance the Cerrado Verde Project. The team's focus is
on the project's unique attributes; its potential scalability and
its location which provides a significant logistical advantage.
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.
Forward-Looking Information
This news release contains certain forward-looking information,
which includes but is not limited to, statements with respect to
performance guarantees, the production of KCl, processing rates,
and development of the Company's projects. Forward-looking
information involves known and unknown risks, uncertainties and
other factors which may cause actual results, performance or
achievements of the Company to differ materially from the
forward-looking information. Material risk factors that could
cause actual results to differ materially from such forward-looking
information include, but are not limited to, actual performance of
kilns, performance guarantees may not be offered for 12,000 tpd
kilns, an intermediate scale plant may not be successful and other
risk factors set out in the Company's most recently filed Annual
Information Form under the heading "Risk Factors".
Accordingly, readers should not place undue reliance on such
forward-looking information. Material factors or assumptions
used to develop such forward-looking information include, but are
not limited to, assumptions set out in the Company's current
technical report. The Company does not currently intend to
update forward-looking information in this news release except
where required by law.
For further information:
Cristiano Veloso, President
& Chief Executive Officer
Tel: +55 (31) 3245 0205; Fax: +55 (31) 3245 0205;
Email: cv@verdepotash.com
www.verdepotash.com
Jaret Anderson, CFA, VP
Corporate Development
Tel: (416) 866-2966; ext. 223; Fax: (416) 866-8829;
Email: ja@verdepotash.com
(NPK.)