Secretary of Finance Assents Special Tax Treatment for Cerrado Verde Potash Project
TORONTO, ONTARIO--(Marketwire - Dec. 22, 2010) -
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Amazon Mining Holding Plc (TSX VNTURE:AMZ) ("Amazon" or the "Company") is pleased to announce that the Secretary of Finance from Minas Gerais State Government has approved this Monday, December 20, 2010, a special tax treatment for Amazon's Cerrado Verde Potash Project ("Cerrado Verde"). This benefit will reduce capital and operational expenditures for the Company's proposed ThermoPotash production. In addition, it will reduce sales tax on ThermoPotash itself.
Conventional potash fertilizers, sulphate of potash ("SOP") and potassium chloride ("KCl"), if produced from Cerrado Verde, will also benefit from this special tax treatment. (See press release December 2, 2010).
The special tax treatment is defined as:
- suspension of the Tax on the Circulation of Products and on Services of Interstate and Intermunicipal Transportation and Communication, currently up to 18% ("ICMS") payable on imports of foreign goods destined to fixed assets, including machinery and equipment, with no similar good produced in Brazil;
- suspension of the ICMS payable on imports of foreign raw materials, intermediates and packing materials, including petroleum coke, with no similar competitive goods produced in Minas Gerais state ("Minas");
- suspension of ICMS on the differential in rates due for acquisitions in other states, of goods destined for the fixed assets, including machinery and equipment, with no similar good produced in Minas;
- suspension of the ICMS payable on purchases of domestic raw materials, intermediates, packaging materials, except electricity, other fuels, lubricants and communication services, purchased from commercial producers in Minas or distribution centers linked to the former, located in this state, upon prior approval of the suppliers and the conditions defined in the Special Regime, under Art. 8, General Part of the RICMS General, approved by Decree no. 43.080 from 2002, only for the production of ThermoPotash, SOP and KCl from Cerrado Verde.
- effective tax load of 4% (four percent) for the ICMS (instead of 12% for Espirito Santo, 8,4% for Sao Paulo, Rio de Janeiro and states from the south region; and 4,9% for the other States of Brazil), payable on sales of ThermoPotash, SOP and KCl from Cerrado Verde, conducted by the distribution center, pursuant to section XIV, art. 75, General Part of the RICMS, approved by Decree No. 43080 of 2002.
A ceremony will be held between the parts for the signature of the agreement which will formalize the foregoing.
About Amazon Mining
Amazon Mining is a mineral exploration and development company founded and led by Brazilians since 2005. The company is focused on the development of the Cerrado Verde project. Cerrado Verde is source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UK public company with shares listed on the TSX Venture Exchange since November 2007.
On behalf of the Board of Directors of Amazon Mining Holding Plc, Cristiano Veloso, President and CEO.
Cautionary Language and Forward Looking Statements
THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.
Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Amazon's website (www.amazonplc.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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cristiano VelosoAmazon Mining Holding PlcPresident & Chief Executive Officer+44 (0) 20 8133 7607+44(0)20 7405 7773 (FAX)cv@amazonplc.com
OR
Jed RichardsonAmazon Mining Holding PlcVP Corporate Development+1(416)866-2966+1(416)866-8829 (FAX)jed@amazonplc.comwww.amazonplc.com
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