Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

November 30, 2009 08:59 ET

Amazon Releases Results for the Quarter Ended September 30, 2009

Drilling Commences at Cerrado Verde Potash Project

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2009) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") announced today its unaudited interim consolidated financial statements for the three month period ended September 30, 2009 and provides the following corporate update.

During, the three-month period ended September 30, 2009 there was net income of Pounds Sterling 234,974 compared to a gain of Pounds Sterling 163,841 for the three-month period ended September 30, 2008. The gain was primarily due to the currency exchange gains (Pounds Sterling 436,449), as the company holds the majority of its cash in Canadian dollars which outperformed the British pound, the reporting currency, during the period. Amazon currently has a working capital position of approximately Pounds Sterling 4.2MM (Cdn$7.4MM).

Subsequent Period Summary

  •    Amazon has commenced drilling at the Cerrado Verde project to delineate an initial NI-43-101 resource on the property. While the surface dimensions of the deposit are easily estimated by outcrop, and grade can be estimated from grab samples, this will be the first confirmation of thickness and first test of potassium grade at depth.
  •    Amazon has entered into an agreement with Phoster Tecnologia de Aglomeracoes ("Phoster"), to refine a process for the commercial manufacture of ThermoPotash Fertilizer. The team at Phoster was responsible for development work on thermo-phosphate, a widely used premium fertilizer made from non-soluble phosphate rocks in Brazil. In addition, Phoster brings a great deal of experience working with the potash rich rocks from Cerrado Verde.
  •    Amazon has retained the services of Coffey Mining to begin a NI-43-101 Preliminary Economic Assessment. Coffey Mining has 50 years of experience in supplying specialist services to the international mining industry. This will provide an independently verified look at the feasibility of Amazon's proposed ThermoPotash operations.

Commenting President & CEO, Cristiano Veloso, said, "The coming months will mark a significant acceleration in the development of our Cerrado Verde project. Amazon will seek to identify in detail the major challenges and risks involved in a project of this nature. This also marks a shift from the Company's cost saving mode of the past 18 months to a more focused use of its finances. Our past cost saving efforts have put us in an enviable position; We have funds on hand to complete much of the Cerrado Verde development work required to determine its potential economic value."

Other Matters

The 7.6 MM warrants striking at $1.55 per share, issued in conjunction with the Company's November 2007, initial public offering have expired as of November 23, 2009, without exercise.

Amazon has issued 5,000 stock options exercisable at $0.69 per share expiring August 26, 2014, and 50,000 stock options exercisable at $0.95 per share expiring November 11, 2014 to new consultants and staff.

About Amazon

Amazon Mining is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of Cerrado Verde project. Cerrado Verde is source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UK public company with shares listed on the Toronto Stock Exchange since November 2007.

On behalf of the Board of Directors of Amazon Mining Holding Plc, Jed Richardson, Vice President of Corporate Development

Cautionary Language and Forward Looking Statements

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, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. 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.

The potential grades detailed in this release are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

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 Amazon's website (www.amazonplc.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Amazon Mining Holding Plc
    Cristiano Veloso
    President & Chief Executive Officer
    +44 (0) 20 8133 7607
    +44(0)20 7405 7773 (FAX)
    cv@amazonplc.com
    or
    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    +1(416)866-2966
    +1(416)866-8829 (FAX)
    jed@amazonplc.com
    www.amazonplc.com