TORONTO, March 19, 2014 /PRNewswire/ --
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
(http://www.verdepotash.com) and filed on SEDAR
(http://www.sedar.com) and any future amendments to such. Readers
are also directed to the cautionary notices and disclaimers
contained herein.
For further information:
Cristiano Veloso, President
& Chief Executive Officer
Tel: +55(31)3245-0205; Fax: +55(31)3245-0205; Email:
cv@verdepotash.com
http://www.verdepotash.com
Iwona Zakrzewski, Investor
Relations
Tel: +1(647)295-8120 / +1(416)866-2966; Fax: +1(416)866-8829;
Email: iz@verdepotash.com