TORONTO,
Feb. 4, 2014 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the
"Company") would like to inform that Inova Agro postponed the
release of the names of projects chosen to receive funding. The
Brazilian government program was originally scheduled to announce
the selection of companies today, February
4, 2014, but have revised its selection results for
February 18, 2014, as per its
website.
Inova Agro is an initiative of the Brazilian
government aimed at coordinating the resources of BNDES and FINEP
to provide financial support to innovative projects in the
agriculture sector. Verde submitted its application and supporting
documents to the Inova Agro program in August 2013 and in September 2013 had been notified of its selection
to advance to the program's next round of evaluation. As part of
Verde's advancement in the program, the Company attended a workshop
on fostering partnerships in October
2013 and in December submitted its business plan.
While the Company awaits the decision, it
continues to explore funding alternatives concurrently with Inova
Agro.
Inova Agro
Inova Agro is a Brazilian government program
intended to fund innovative projects in the agriculture sector,
including those focused on fertilizers. Total funds to be
distributed by Inova Agro are budgeted at R$1 billion (approximately C$450 million). Selected projects will be
considered for 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 arms of the Brazilian
government with a mandate to support domestic projects.
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 both ThermoPotash 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 receive funding from Inova Agro,
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