TORONTO, September 12, 2013 /PRNewswire/ --
Verde Potash (TSX: "NPK")
("Verde" or the "Company") is pleased to announce the positive
results of a 30 month field test of ThermoPotash ("TK") with coffee
crops. The trial indicated that TK was more efficient in the
delivery of potassium than potassium chloride ("KCl"), generating
an equivalent coffee yield while using 36% of the potash that was
applied to the KCl test plots.
The field test was conducted over a 30 month growing period,
beginning in 2010, in Minas Gerais State, Brazil. The test was conducted by Verde in
conjunction with EPAMIG, the agricultural research service of the
government of Minas Gerais State.
In the field test, the amount of potash ("K2O")
applied on the TK plots was 36% that of the amount applied on the
KCl plots. Each coffee tree on the TK plots was treated with 80g of
K2O equivalent while trees on the KCl plots were treated
with 220g of K2O equivalent. Yields on both plots were
equivalent despite the difference in K2O applied.
The field tests were conducted at EPAMIG's experimental farm
located in Patrocínio, Minas Gerais, Brazil under the coordination of the
researchers Paulo Tácito Gontijo Guimarães and Kaio Gonçalves de
Lima Dias. The tests concluded that TK is an efficient source of
potash and also a source of calcium, magnesium and silicon. TK was
applied only once at the beginning of the 30 month test period
while KCl was applied to the field on four separate occasions,
replicating what occurs in real world farming where seasonal KCl
applications are standard practice in order to combat the effects
of leaching. The ability to apply a single dose of TK versus
multiple doses of KCl has positive implications for application
costs.
TK is a controlled release, non-chloride multi-nutrient potash
fertilizer that has been developed by Verde. It is a new product
that is expected to compete against other premium non-chloride
potash fertilizers in the Brazilian market, such as potassium
sulphate ("SOP") and potassium nitrate ("NOP").
It is also important to highlight the influence of KCl on the
quality of the coffee because, by content, 40% of this fertilizer
is chloride. TK, by comparison, contains no chloride.
Research[1] has shown that
chloride is responsible for a reduction in the quality of coffee
beverages. Premium coffee producers already use other sources of
potash that have no chloride in order to avoid this issue.
Brazil imports more than 90% of
its potash, which makes it the country's fifth most imported
product by value. In Minas Gerais State, about one-third of potash
consumption is used on coffee plantations. Brazil is the world's largest coffee producer
with over half of Brazil's coffee
grown in Minas Gerais State. Brazilian coffee growers spend
approximately US$250 million annually
on potash fertilizers.
About EPAMIG
The Agricultural Research Company of Minas Gerais ("EPAMIG") was
created as a public company in 1974. It is the main institution for
agricultural research in Minas Gerais State; its mission is to
provide solutions for the agronomic sector, generate and adapt
technological alternatives, offer specialized services, technical
training, skilled inputs compatible with the needs of farmers and
positiveily impact the population's quality of life.
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 both ThermoPotash and potassium chloride (KCl).
ThermoPotash is a controlled-release, non-chloride, multi-nutrient
fertilizer that is ideally suited for Brazilian soils. In addition,
the Company is developing its Calcario limestone project, limestone
being a key raw material in the Company's process to produce both
ThermoPotash and 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 both ThermoPotash
and 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
the Company's strategy, the effectiveness of ThermoPotash as a
specialty fertilizer product, the commercial production of
ThermoPotash, demand for ThermoPotash in Brazil, the value of ThermoPotash as a
saleable fertilizer product, and the generation of cash flow from
ThermoPotash production. 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, the failure to obtain necessary regulatory
approvals, risks associated with the mining industry in general
(e.g., operational risks in development, exploration and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks), commodity
price, demand for ThermoPotash and KCl in Brazil, exchange rate fluctuations and other
risk factors set out in the Company's most recently filed Annual
Information Form under the heading "Risk Factors". Currently,
ThermoPotash is not commercially produced or sold in Brazil. As a consequence, there is no current
market for this product. Should commercial demand for ThermoPotash
fail to develop, the Company's business model may not be
appropriate. 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, the demand for
ThermoPotash and KCl in Brazil,
the ability to secure necessary environmental and mining permits,
the ability to secure financing, and other 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.
[1] "Nutritional aspects of
high quality production of Arabica coffee", Developments in Plant
and Soil Sciences, Volume 92, 2002, pp322-323.
For further information:
Cristiano Veloso, President
& Chief Executive Officer
Tel: +55(31)3245-0205; Fax: +55(31)3245-0205;
Email: cv@verdepotash.com
Jaret Anderson, CFA, VP
Corporate Development
Tel: +1(416)866-2966; ext. 223; Fax: +1(416)866-8829;
Email: ja@verdepotash.com
http://www.verdepotash.com