BNDES to Structure Verde's Funding Plan
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.
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 PlcFor further information:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Fax: +55 (31) 3245 0205; Email: email@example.com
Iwona Zakrzewski, Investor Relations
Tel: (647) 295-8120 / (416) 866-2966; ext. 224; Fax: (416) 866-8829; Email: firstname.lastname@example.org