TORONTO,
Oct. 29,
2014 /CNW/ - Verde
Potash (TSX: "NPK") ("Verde" or the "Company") is
pleased to announce the Company has been approved for a financing
program entitled PAISS Agricola, jointly managed by the Brazilian
Development Bank ("BNDES") and the Financing Agency for Studies and
Projects (FINEP). Specifically for the production of sugarcane,
PAISS Agricola is a distinct and autonomous financing program from
Inova Agro, it supports
technological innovation in the sugar-based energy and chemical
sectors. ThermoPotash ("TK") is a multi-function fertilizer that is
a highly efficient source of potash and provides a spectrum of
other benefits, ranging from increasing the efficiency of phosphate
sources, which allows for a reduction in their usage, to reducing
the use of pesticides due to its disease resistance capability.
Given TK's wide range of functions, farmers have the potential to
optimize their current nutrient management system saving costs and
increasing crop sustainability. A more efficient, lucrative and
sustainable opportunity for sugarcane growers will be evaluated
under funding from PAISS Agricola.
Verde's application to the program is predicated on optimizing
sugarcane growers' production process by using TK as part of its
nutrient management practices. The total budget approved is for
R$57.5M (~C$25.6M), to be sourced by a BNDES credit line,
at a government-subsidized interest rate. Receipt of the funds is
conditional upon BNDES' comprehensive review of the project,
including a risk and market analysis. Such a review is done on a
program-by-program basis.
The production optimization, which is another benefit of TK,
will require a number of agronomic tests for a full understanding
of its reach. Such research will allow the Company to pave the way
for a much broader usage of the product in Brazil and quantify all economic merits of the
product. Based on the quantified results, Verde will be able to
grow the market and properly determine TK's pricing given its
multi-functionality.
The Company intends to draw down on the funds over the next
three years. Initially, Verde intends to ask for R$1M (~C$450K) to
pay for the production of TK for a major field trial to be
implemented with a selected partner.
"Verde's selection to participate in the agricultural innovation
program is a major leap towards the development of the TK market.
It recognizes and endorses TK not only being as a source of potash,
but as an advanced and highly efficient product capable of
revolutionizing tropical agriculture", commented President &
CEO, Cristiano Veloso.
Using TK as part of their nutrient management practices allows
farmers to achieve optimal and sustainable crop productivity for
several reasons:
- TK releases potash according to the plants' needs, thereby
eliminating nutrient loss;
- TK has a high concentration of plant available silicon. Silicon
accumulated in plant leaves can considerably reduce the incidence
of pests and diseases and thus reduce the need to use pesticides.
Silicon also protects against excessive transpiration alleviating
negative water stress. Water stress is caused by restricted water
supply from the soil, which limits a plants growth;
- Farmers can reduce the dosage of fertilizer applied when using
TK and still increase crop yields. The main reason for this is
because TK is not leached in water as other potassium salt
fertilizers such as KCl. This has a residual effect on the soil.
Soil analysis showed higher levels of potassium, calcium and
silicon when using TK compared to soils treated with other sources
of fertilizer, thereby reducing the number of applications;
- Fertilizers that contain chlorine compromise the quality of
some crops and can pollute the soil and underground water. TK does
not contain any chlorine;
- The presence of calcium oxides with silicates in TK's
composition enables the fertilizer to correct soil acidity and thus
warrants a reduction in the use of limestone. Limestone is commonly
used to correct soil acidity, however it is responsible for much of
the CO2 emissions in agriculture.
In order to examine the functions of TK to the fullest extent
and uncover a new, more efficient, sustainable and cost effective
plant nutrient management system, the Company will carry out
various tests. Verde is presently identifying all viable
opportunities to fast track production of TK in the commercial
quantities necessary for such tests. One such opportunity is to buy
or lease a non-operating pyrometalurgical plant and convert it into
one for TK production. This is being pursued concurrently with
greenfield licensing and construction.
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.
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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, the lease or purchase of an existing facility and its
economic viability, receipt of environmental permits, and the
receipt of funds from PAISS Agricola. 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 BNDES,
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 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.
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SOURCE Verde Potash Plc