Brazil Potash Corp.

Brazil Potash Corp.

October 19, 2009 16:18 ET

Brazil Potash Corp. Announces Closing of Private Placement

BELO HORIZONTE, BRAZIL--(Marketwire - Oct. 19, 2009) -

NOT FOR ISSUE IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

Brazil Potash Corp. ("Brazil Potash" or the "Company") is pleased to announce that it has completed a private placement financing (the "Offering") for gross proceeds of US$25,000,000, at a price of US$1.00 per common share.

Proceeds from the Offering will be deployed to establish a potash resource at the Company's extensive property in the State of Amazonas, Brazil. Diamond drilling to establish a NI 43-101 resource along with technical, field and environmental studies will commence in November.

Stan Bharti, Brazil Potash's Chairman, states, "We have big plans for Brazil Potash to be a leader among potash development companies. With the completion of the Offering and the broadening of our shareholder base with key strategic investors, we are well poised to build upon this vision and to explore our highly prospective land package in a basin where more than 1 billion tonnes of potash resources have previously been identified by Petrobras".

Helio Diniz, Managing Director, Brazil Operations, Potassio do Brazil remarks, "I see Potassio do Brazil as a leader in potash production in Brazil. With permits already in place for the drill program, we are now in a position to review contract tenders and we expect to begin to see initial results before the end of the year".

A syndicate of agents co-led by Wellington West Capital Markets and RBC Capital Markets, and including Delano Capital and Canaccord Capital placed the Offering.

This press release is not an offer of securities in the United States or any other jurisdiction. The securities sold in the Offering were not and will not be registered under the U.S. Securities Act or the U.S. Investment Company Act and may not be offered or resold in the United States absent an exemption from registration therefrom.

About Brazil Potash Corp.
Brazil Potash Corp. is a private Brazilian potash exploration company with a base of operations located in Belo Horizonte, Brazil. The Company holds the key mineral rights in the 400-kilometer-long Amazon potash basin. Geological Seismic and borehole surveys indicate the basin has similar scale, geological properties and is the same age as the Saskatchewan basin in Canada.

Please visit the Company's web site at www.potassiodobrasil.com.br or www.brazilpotash.com

Cautionary Note Regarding Forward-looking Information
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of applicable securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's plan of business operations; projections regarding future success based on past success; availability of financing on acceptable terms; ability to identify and execute investments; investment philosophy and business purposes; projected costs and expenditures; potential benefits of the business; and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. In particular, past success or achievement does not guarantee future success. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward- looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward- looking information, whether as a result of new information, future events or otherwise.

Contact Information

  • Brazil Potash Corp.
    Helio Diniz
    Managing Director, Brazil Operations
    +55 31 3505 5200
    or
    Brazil Potash Corp.
    Aaron Wolfe
    Vice President, Corporate Development
    +1 (416) 309-2696