TORONTO, March 11, 2014 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") is pleased to announce the
results of tests establishing that the quality of coffee, when grown
using ThermoPotash, is higher than the quality of coffee grown using
potassium chloride ("KCl"). Contrary to an identical test crop
fertilized with KCl, the ThermoPotash fertilized coffee reached the
standard of specialty coffee, a category that commands a premium price.
Cristiano Veloso, President & CEO, commented: "Over one third of the
world's coffee production is grown less than a 10 hour drive from the
Cerrado Verde Project. On average, coffee requires up to three times
more potash than soybeans and two times more potash than corn each
year. ThermoPotash can potentially supply this market and be a key
determinant in producing superior quality coffee which justifies a
higher price."
The field tests were led by the Agricultural Research Company of Minas
Gerais ("EPAMIG"), a public company that is the main agriculture
research institute in the state of Minas Gerais. Coffee produced during
EPAMIG field trials (see press release dated September 12, 2013) was
sent to independent experts at Cooxupé, a leading Brazilian coffee
cooperative that is the world's largest individual coffee exporter.
Experts at Cooxupé then sampled the coffee as per the guidelines of the
Specialty Coffee Association of America ("SCAA"), under pre-established
quality criteria for physical and sensory attributes. Coffee grown with
ThermoPotash received an average grade of 83 out of 100 points, a
measurement that qualifies the coffee as specialty coffee. The grade
for the same harvested coffee but grown using KCl was an average of 73
points. Coffee must receive a grade of 80 or above to be regarded as
specialty coffee.
As per the Company's press release dated September 12, 2013, field tests
conducted by Verde in conjunction with EPAMIG demonstrated that
ThermoPotash was more efficient in the delivery of potassium than KCl
generating an equivalent coffee yield while using 36% of the potash
that was applied to the KCl test plots.
The premium coffee sector, which accounts for approximately 20% of the
coffee market, is growing rapidly as consumers seek better tasting
coffee. High quality beans from Latin America are attracting large
premiums and sell for about three times the market price at auction. 1
The Brazilian Coffee Market
Brazil's climate and topography allow for ample production of coffee,
ranking the country as the world's largest producer of coffee,
accounting for 37% of the world's coffee supply, and is its second
consumer market. More than half of Brazil's coffee production and 25%
of the world's coffee production takes place in Minas Gerais state,
where the Company's Cerrado Verde Potash Project is located. In 2012,
Minas Gerais state's coffee exports were valued at US$3.8 billion
making Brazil one of the largest coffee exporters in the world. Over
the next ten years, the Brazilian market expects significant growth of
approximately 10% in domestic demand for specialty coffees (annual
growth of 1% per year). This is in addition to the current consumption
growth rate of 4.8% per year.
The Specialty Coffee Association of America
The Specialty Coffee Association of America (SSCA) is a civil trade
organization founded in 1982 with the goal of bringing together
producers of specialty coffee, multiplying the production of specialty
coffees, stimulating continuous technological improvement and raising
standards of efficiency in services related to the marketing of these
coffees. Members of SSCA include retailers, roasters, producers,
exporters and importers as well as manufacturers of coffee equipment
and related products.
About EPAMIG
The Agricultural Research Company of Minas Gerais ("EPAMIG") was created
as a public company in 1974. It is the main institution for
agricultural research in Minas Gerais state; its mission is to provide
solutions for the agronomic sector, generate and adapt technological
alternatives, offer specialized services, technical training, skilled
inputs compatible with the needs of farmers and positively impact the
population's quality of life.
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.
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1 Morton-Clark, Seb and Terazono, Emiko. "Coffee connoisseurs boost
high-end market." ft.com. Financial Times. 5 Feb. 2014. Web. 5 Feb.
2014.
SOURCE Verde Potash Plc
