TORONTO, March 19, 2014 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") is pleased to inform that in
the evening of March 18th, 2014, Inova Agro confirmed Verde as one of the selected companies.
While Verde announced its selection in a press release dated February
19th, 2014, the Company also informed that any applicant to the program who
was not selected could file an appeal regarding the results. The appeal
must have been filed within ten calendar days and the final results to
be confirmed on March 18th, 2014. The Company is pleased to confirm
that the result is now final and the Joint Support Plan for each
approved business plan will be sent on April 17, 2014.
Verde submitted its application and support documentation to the Inova
Agro program in August 2013 and in February 2014, the Company was
notified of its selection. Verde submitted its business plan for the
development of Cerrado Verde, at an estimated total of R$ 280 million
(approximately US$ 115 million), of which R$ 250 million (approximately
US$ 105 million) was asked from Inova Agro. This capital is to be
provided via loans with subsidized interest rates, equity investment
and non-reimbursable project investment grants from the Brazilian
Development Bank ("BNDES") and/or the Financing Agency for Studies and
Projects ("FINEP"), both of which are branches of the Brazilian
government that operate Inova Agro. Of the total capital, up to R$ 10
million (approximately US$ 4.2 million) can be provided as a
non-reimbursable project investment grant.
Inova Agro
Inova Agro is an initiative of the Brazilian government aimed at
coordinating the resources of BNDES and/or FINEP to provide financial
support to innovative projects in the agriculture sector. The Inova
Agro support program involves a specific set of criteria and a schedule
for the distribution of funds.
The Inova Agro program targets three business sectors for funding:
agribusiness inputs, food industry processing and agribusiness
equipment. The Company's Cerrado Verde project expects to significantly
contribute to Brazil's production of potash fertilizers and therefore
fits into the inputs for agribusiness (fertilizers) portion of the
program.
Inova Agro is part of the larger Inova Empresa program, which spans a
number of sectors. The total budget for Inova Empresa is R$32.9 billion
(approximately C$15.0 billion). While the budget for Inova Agro
provides for R$1 billion in funding, this figure could increase at the
discretion of the funding institutions (BNDES and FINEP).
About BNDES
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 FINEP
The Financing Agency for Studies and Projects (FINEP) is a state-owned
company under the Brazilian Ministry of Science and Technology that
promotes economic and social development by fostering innovation in
public and private companies, universities, technological institutes
and other public and private institutions in the country.
Founded in 1967, the organization has funded thousands of successful
initiatives, including the development of Embrapa, Brazilian
agribusiness projects, oil exploration and development of the aircraft
Embraer Tucano.
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 KCl to
Brazil's local agriculture market from its large potash-rich deposit.
Cautionary Language and Forward Looking Statements
NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 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, AND STATEMENTS REGARDING USE OF PROCEEDS. 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 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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SOURCE Verde Potash Plc
