TORONTO, April 22, 2014 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") would like to provide
information on Inova Agro's financial support program as it relates to
the Company's business plan for the Cerrado Verde Potash Project. Verde
received an email from Inova Agro's Evaluation Committee - jointly
comprised of the Brazilian Development Bank ("BNDES") and the Financing
Agency for Studies and Projects ("FINEP"), the program's two supporting
institutions - informing that Inova Agro has appointed BNDES to handle
the financing structure for Verde's business plan.
As indicated in Verde's press release dated March 19, 2014, Inova Agro
was to send the Company a joint support plan for its approved business
plan on April 17, 2014. At this time, the only details provided in the
plan is that BNDES is to coordinate the financing structure phase and
that the Company will be contacted by BNDES to discuss the structure
and terms of the financing.
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 Verde Potash
Verde Potash, a Brazilian fertilizer development company, is focused on
advancing the Cerrado Verde Potash 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 ("TK") and potassium chloride ("KCl"). TK 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 TK 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 TK
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 KCl, design and building of a
Flex Plant, timing and completion of a prefeasibility study, receipt of
environmental permits, and the generation of cash flow from Phase 1 of
the new strategy. 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 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 and KCl 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.
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SOURCE Verde Potash Plc
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Fax: +55 (31) 3245 0205; Email: cv@verdepotash.com
www.verdepotash.com
Iwona Zakrzewski, Investor Relations
Tel: (647) 295-8120 / (416) 866-2966; ext. 224; Fax: (416) 866-8829; Email: iz@verdepotash.com
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