TORONTO, February 4, 2014 /PRNewswire/ --
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.
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, VP
Investor Relations
Tel: +1-416-866-2966; ext. 224; Fax: +1-416-866-8829; Email:
iz@verdepotash.com