TORONTO, September 23, 2013 /PRNewswire/ --
Verde Potash (TSX: "NPK")
("Verde" or the "Company") is pleased to announce that the Company
has been selected by Inova Agro, a special financing progam of the
Brazilian government, to advance to the next round of evaluation in
the process to secure financing for Phase 1 of the Cerrado Verde
project. Phase 1 of the Cerrado Verde project consists of a 1,000
tpd plant capable of producing ThermoPotash and also of seeking
performance guarantees for a large scale KCl kiln. Inova Agro is a
Brazilian government program intended to fund innovative projects
in the agriculture sector, including those focused on fertilizers.
Total funds to be distributed by Inova Agro are budgeted at
R$1 billion (approximately
C$450 million), with funding
allocation decisions to be announced in February 2014. Selected projects will be
considered for subsidized interest rates, equity investment and
non-reimbursable project investment grants from the Brazilian
Development Bank ("BNDES") and/or the Financing Agency for Studies
and Projects ("FINEP"), both of which are arms of the Brazilian
government with a mandate to support domestic projects.
Inova Agro
Inova Agro is an initiative of the Brazilian government aimed at
coordinating the resources of BNDES and FINEP to provide financial
subsidies to innovative projects in the agriculture sector. The
Inova Agro support program involves a specific set of criteria and
a schedule for the distribution of funds. Verde submitted its
application and support documentation to the Inova Agro program in
August 2013 and has been notified of
its selection to advance to the program's next round of evaluation.
On January 31, 2014, Inova Agro is
scheduled to release the names of projects chosen to receive
funding. Companies and projects that are successful in securing
financial support from Inova Agro will have funding plans set in
February 2014.
The Inova Agro program targets three business sectors for
funding: agribusiness inputs, food industry processing and
agribusiness equipment. The Company's Cerrado Verde project expects
to significantly contribute to Brazil's production of potash fertilizers and
therefore fits into the inputs for agribusiness (fertilizers)
portion of the program.
Inova Agro is part of the larger Inova Empresa program, which
spans a number of sectors. The total budget for Inova Empresa is
R$32.9 billion (approximately
C$15.0 billion). While the budget for
Inova Agro provides for R$1 billion
in funding, this figure could increase at the discretion of the
funding institutions (BNDES and FINEP).
Management believes that access to debt funding from the Inova
Agro program could act as a significant advantage for the Cerrado
Verde project. The Company looks forward to working with the Inova
Agro Evaluation Committee over the coming months.
About BNDES
The Brazilian Development Bank (BNDES), a state-owned company,
is the main financing institution for development in Brazil. Since its foundation in 1952, the
BNDES has played a fundamental role in stimulating the expansion of
industry and infrastructure in the country. Over the course of the
Bank's history, its operations have evolved in accordance with the
Brazilian socio-economic challenges; today they include support for
exports, technological innovation, sustainable socio-environmental
development and the modernization of public administration.
The Bank offers several financial support mechanisms to
Brazilian companies of all sizes as well as public administration
entities, enabling investments in all economic sectors. In any
supported undertaking, from the analysis phase up to the
monitoring, the BNDES emphasizes three factors it considers
strategic: innovation, local development and socio-environmental
development.
About FINEP
The Financing Agency for Studies and Projects (FINEP) is a
state-owned company under the Brazilian Ministry of Science and
Technology that promotes economic and social development by
fostering innovation in public and private companies, universities,
technological institutes and other public and private institutions
in the country.
Founded in 1967, the organization has funded thousands of
successful initiatives, including the development of Embrapa,
Brazilian agribusiness projects, oil exploration and development of
the aircraft Embraer Tucano.
Management Appointment
The Company is pleased to announce the appointment of Mr.
Tim Slater as Chief Financial
Officer. Mr. Slater is the Managing Director of Harmer Slater
Chartered Accountants in the United
Kingdom, and has been involved in the preparation of all of
the Company's financial statements and audit materials since 2007.
Mr. Slater has acted as Finance Director for a range of companies
in the UK.
The Company also wishes to announce the retirement of Mr.
Henrique Cavalcanti as a Director of
the Company. Mr. Cavalcanti has served the Board diligently over
the past four years. He is retiring from public company duties at
the age of 84 after a long and distinguished career that included
service as Brazil's Minister of
the Environment (1994), Deputy Minister of Mines (1967-69) and
Deputy Minister of Interior (1969-1974).
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, funding of the Cerrado Verde project, the commercial production
of ThermoPotash and KCl, design and building of a Flex Plant, timing and
completion of a prefeasibility study, receipt of environmental permits,
and the generation of cash flow from Phase 1 of the new strategy.
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, failure to receive funding from Inova Agro, failure
to obtain financing on acceptable terms, 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.
For additional information please contact:
Cristiano Veloso,
President & Chief Executive Officer, Tel: +55(31)3245-0205,
Fax: +55(31)3245-0205, 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