RE:Implied updated Valuation The carbon dioxide ("CO 2 ") capture is inherent to the Products and is estimated at 120kg per tonne. The CO2 removal does not require any change to the Products' production and farmland application methods, nor does it change the nutritional benefits to plants.
As a result, in the production scenario of 50 million tonnes per year ("Mtpy"),Verde would be one of the world's largest carbon capture projects with a total of 6 million tonnes of CO2 permanently subtracted from the atmosphere every year.
Over many years, Verde's prospecting led to the identification of a silicate mineral that is rich in glauconite (the "Rock").
It is distinctive in its faster weathering rate compared to other minerals used in ERW schemes, such as basalt, which allows the Rock to capture CO2 more rapidly.
In a parallel benefit, the Rock is a source of several plant nutrients including potassium (represented on the periodic table as "K"), which is a crucial element for plant growth, and is a proven substitute for Potassium Chloride ("KCl").
To evaluate Verde's Products, the Company engaged Professor David Manning Ph.D., who is a leading expert in ERW. Dr. Manning has been a member of the Institution of Geologists since 1979, was the president of the Geological Society of London from 2014-2016, member of Council of the European Federation of Geologists ("EFG") and chaired the EFG's Panel of Experts on Soil Protection. He has extensive publications on the topic of soil and its role in combating climate change.2 , 3
Analyses performed on Verde's Products at Newcastle University have confirmed its efficiency to extract CO2 from the atmosphere at a ratio of 120kg of CO2 per 1 tonne of Product, based on a well-established scientific calculation formula.4
In conclusion, Verde's Rock undergoes ERW to permanently capture atmospheric CO2 while releasing K and other plant nutrients.
Previously, following extensive geological research of the Rock, including over 40,000 meters of drilling and chemical analyses, Verde had commissioned an independent mineral resource and reserve study under the Canadian National Instrument 43-101,
which has established a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).
This amounts to 295.70 million tonnes of potash equivalent in K2O. For context, in 2021 Brazil's total consumption of potash in K2O was 6.57 million.6
Professor David Manning commented on the findings: "For over 40 years I have devoted the bulk of my research to how we can exploit soil processes to mitigate the effects of anthropogenic greenhouse gas emissions.
More specifically, I use my research-based understanding of how soils and their constituent minerals interact with the biosphere in the context of carbon capture and plant nutrient supply.
It was therefore no surprise when our research demonstrated the potential of Verde's Products to absorb CO2.
More impressive is Verde's total mineral resources' potential to remove around 398 million tonnes of CO2 from the atmosphere,7 in what will be a significant contribution to global efforts to reduce atmospheric CO2 levels."
300,000 tons per year barely scratches the surface..