TORONTO, Nov. 25, 2013 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") is pleased to announce that the Company's ThermoPotash ("TK") product has been approved for use on organic crops by IBD Certifications, the largest certifier in Latin America and Brazil. KCl is not certified for use on organic crops and is therefore not an option for organic farmers.
Organic crops sell for a premium price, which leads organic farmers to devote significant resources to accredited crop inputs that drive higher yields. The market for Brazilian organic products in 2012 was valued at approximately R$750 million (US$385 million), according to Instituto de Promocao do Desenvolvimento ("IPD"). IPD predicts sales growth for this market of 20-25% per year over the next five years, with 2014 sales of R$1 billion (US$440 million). Principle organic crops in Brazil include sugar, palm oil, fruits and juices.
Commenting, President and CEO, Cristiano Veloso, said: "We are very pleased to have secured this important recognition from IBD Certifications. It will allow us to offer ThermoPotash to the growing number of organic crop producers in Brazil. Organic farms produce a premium product, and are therefore willing and able to pay some of the highest prices for crop inputs. Verde's ThermoPotash will offer organic farmers an attractive value proposition from a local Brazilian supplier."
ThermoPotash is a controlled release, multi-nutrient fertilizer. It has been tailored to deliver potassium, calcium and silicon (among other nutrients), making it ideally suited for Brazilian soils. Calcium increases the pH level of soils, thereby addressing the high acidity found throughout most of the Cerrado region. In 2012, Brazilian farmers spent hundreds of millions of dollars applying approximately 30 million tonnes of limestone in order to address soil acidity. Silicon improves plants' resistance to insects and fungus - an important consideration for organic farmers who cannot use most agrochemicals. In June 2013 ThermoPotash was accredited by Brazil's Ministry of Agriculture as a potash fertilizer, making it eligible for sale in Brazil.
About IBD Certifications
IBD Certifications is a Brazilian company that carries out agricultural, processing, wild harvesting, organic, biodynamic and fair trade inspection and certification activities. IBD is the largest certifier in Latin America and the only Brazilian certifier of organic products that is accredited by the International Federation of Organic Agriculture Movements (international market), ISO Guide 65 (European market, rule CE 834/2007), Demeter International (international market), United States Department of Agriculture's National Organic Program (North American market) and INMETRO / MAPA (Brazilian market), making its certificate accepted globally.
Located in Botucatu, SP (Brazil) and founded in 1982, IBD operates throughout Brazil and abroad, including Argentina, Bolivia, Columbia, Ecuador, Mexico, Paraguay, Uruguay, the United States, Canada , Belgium, Holland, New Zealand, China, India, and Thailand, working towards sustainable production standards and stimulating fair trade.
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 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 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 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
For further information:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Fax: +55 (31) 3245 0205; Email: [email protected]
Jaret Anderson, CFA, VP Corporate Development
Tel: (416) 866-2966; ext. 223; Fax: (416) 866-8829; Email: [email protected]