TORONTO, March 11, 2014 /PRNewswire/ --
Verde Potash (TSX: "NPK")
("Verde" or the "Company") is pleased to announce the results of
tests establishing that the quality of coffee, when grown using
ThermoPotash, is higher than the quality of coffee grown using
potassium chloride ("KCl"). Contrary to an identical test crop
fertilized with KCl, the ThermoPotash fertilized coffee reached the
standard of specialty coffee, a category that commands a premium
price.
Cristiano Veloso, President &
CEO, commented: "Over one third of the world's coffee production is
grown less than a 10 hour drive from the Cerrado Verde Project. On
average, coffee requires up to three times more potash than
soybeans and two times more potash than corn each year.
ThermoPotash can potentially supply this market and be a key
determinant in producing superior quality coffee which justifies a
higher price."
The field tests were led by the Agricultural Research Company of
Minas Gerais ("EPAMIG"), a public company that is the main
agriculture research institute in the state of Minas Gerais. Coffee
produced during EPAMIG field trials (see press release dated
September 12, 2013) was sent to
independent experts at Cooxupé, a leading Brazilian coffee
cooperative that is the world's largest individual coffee exporter.
Experts at Cooxupé then sampled the coffee as per the guidelines of
the Specialty Coffee Association of America ("SCAA"), under
pre-established quality criteria for physical and sensory
attributes. Coffee grown with ThermoPotash received an average
grade of 83 out of 100 points, a measurement that qualifies the
coffee as specialty coffee. The grade for the same harvested coffee
but grown using KCl was an average of 73 points. Coffee must
receive a grade of 80 or above to be regarded as specialty
coffee.
As per the Company's press release dated September 12, 2013, field tests conducted by
Verde in conjunction with EPAMIG demonstrated that ThermoPotash was
more efficient in the delivery of potassium than KCl generating an
equivalent coffee yield while using 36% of the potash that was
applied to the KCl test plots.
The premium coffee sector, which accounts for approximately 20%
of the coffee market, is growing rapidly as consumers seek better
tasting coffee. High quality beans from Latin America are attracting large premiums
and sell for about three times the market price at
auction.[1]
The Brazilian Coffee Market
Brazil's climate and topography
allow for ample production of coffee, ranking the country as the
world's largest producer of coffee, accounting for 37% of the
world's coffee supply, and is its second consumer market. More than
half of Brazil's coffee production
and 25% of the world's coffee production takes place in Minas
Gerais state, where the Company's Cerrado Verde Potash Project is
located. In 2012, Minas Gerais state's coffee exports were valued
at US$3.8 billion making Brazil one of the largest coffee exporters in
the world. Over the next ten years, the Brazilian market expects
significant growth of approximately 10% in domestic demand for
specialty coffees (annual growth of 1% per year). This is in
addition to the current consumption growth rate of 4.8% per
year.
The Specialty Coffee Association of
America
The Specialty Coffee Association of America (SSCA) is a civil
trade organization founded in 1982 with the goal of bringing
together producers of specialty coffee, multiplying the production
of specialty coffees, stimulating continuous technological
improvement and raising standards of efficiency in services related
to the marketing of these coffees. Members of SSCA include
retailers, roasters, producers, exporters and importers as well as
manufacturers of coffee equipment and related products.
About EPAMIG
The Agricultural Research Company of Minas Gerais ("EPAMIG") was
created as a public company in 1974. It is the main institution for
agricultural research in Minas Gerais state; its mission is to
provide solutions for the agronomic sector, generate and adapt
technological alternatives, offer specialized services, technical
training, skilled inputs compatible with the needs of farmers and
positively impact the population's quality of life.
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.
Cautionary Language and Forward
Looking Statements
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 the generation of cash
flow from the sale of ThermoPotash. 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, 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 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.
Readers are cautioned not to rely solely on the summary of such
information contained in this release and are directed to the
complete corporate history available 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.
[1] Morton-Clark, Seb and
Terazono, Emiko. "Coffee connoisseurs boost high-end market."
ft.com. Financial Times. 5 Feb. 2014.
Web. 5 Feb. 2014.
For further information:
Cristiano Veloso,
President & Chief Executive Officer
Tel: +1(416)866-2966; Fax: +1(416)866-8829;
Email: cv@verdepotash.com
http://www.verdepotash.com
Iwona Zakrzewski, Investor
Relations
Tel: +1(647)295-8120 / +1(416)866-2966; ext. 224; Fax:
+1(416)866-8829; Email: iz@verdepotash.com