TORONTO, April 22, 2014 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the
"Company") would like to provide information on Inova Agro's financial support program as it
relates to the Company's business plan for the Cerrado Verde Potash
Project. Verde received an email from Inova
Agro's Evaluation Committee - jointly comprised of the
Brazilian Development Bank ("BNDES") and the Financing Agency for
Studies and Projects ("FINEP"), the program's two supporting
institutions - informing that Inova
Agro has appointed BNDES to handle the financing structure
for Verde's business plan.
As indicated in Verde's press release dated
March 19, 2014, Inova Agro was to send the Company a joint
support plan for its approved business plan on April 17, 2014. At this time, the only details
provided in the plan is that BNDES is to coordinate the financing
structure phase and that the Company will be contacted by BNDES to
discuss the structure and terms of the financing.
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 Verde Potash
Verde Potash, a
Brazilian fertilizer development company, is focused on advancing
the Cerrado Verde Potash 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 ("TK") and
potassium chloride ("KCl"). TK 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 TK 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 TK 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 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. |
SOURCE Verde Potash Plc