Verde Potash Announces Cost Reductions and Mr. Leonardo Moretzsohn's Resignation
TORONTO, Dec. 26, 2013 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") would like to announce that Mr. Leonardo Moretzsohn has resigned from the Board effective immediately for personal reasons. The Company would like to thank Mr. Moretzsohn for his support and contribution, wishing him well in his future endeavors.
In order to reduce costs, Verde will reduce its number of directors to six, five of whom will be non-executive directors.
Over the last few weeks, the Company has been reducing costs as much as possible, including personnel, consultancy, benefits and travel expenses.
President & CEO, Cristiano Veloso, commented: "The Company is expecting to reap the benefits of a highly productive past year with anticipated results in Q1 2014 from a pre-feasibility study, Inova Agro's funding allocation decision, and ThermoPotash agronomic trials. Nevertheless, the Company is taking measures to substantially reduce its expenditures. Also, since IPO in 2007, Verde has issued only 9,114,559 shares and intends to continue protecting its share structure while advancing the project."
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.
Cautionary Language and Forward Looking Statements
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 the generation of cash flow from the sale of ThermoPotash. 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, 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.
Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete corporate history available on Verde's website (www.verdepotash.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.
SOURCE Verde Potash PlcFor further information:
Cristiano Veloso, President & Chief Executive Officer
Tel: (416) 866-2966; Fax: (416) 866-8829; Email: email@example.com
Iwona Zakrzewski, Investor Relations
Tel: (416) 866-2966; ext. 224; Fax: (416) 866-8829; Email: firstname.lastname@example.org