Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

March 22, 2010 07:00 ET

Sekita Agribusiness Agrees to Fund Trials of Amazon Mining's ThermoPotash Fertilizer

TORONTO, ONTARIO--(Marketwire - March 22, 2010) - Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company"), is pleased to announce that the Company has entered into an agreement with Sekita Agronegocios ("Sekita"), a leading Brazilian based agribusiness company, to fund agronomic tests using Amazon Mining's proposed ThermoPotash product derived from the Cerrado Verde project.

Cerrado Verde is a source of potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Cerrado Verde, which is amenable to open pit mining, is located in central Minas Gerais in the heart of Brazil's vast Cerrado agricultural area.

Sekita plans to test ThermoPotash in real world conditions for use with garlic, carrots, corn, soybeans, wheat and grazing grass for dairy cattle. Sekita is a leading Brazilian carrot, garlic and milk producer. Its farms are located less than 10km from the Cerrado Verde Project. This region accounts for nearly one third of Brazil's carrot production. Carrot plantation requires up to four times more potash per hectare per year than crops like soybeans or corn. Sekita already uses ThermoPhosphate, a slow release highly efficient phosphate fertilizer that share's many of the characteristics and much of the production process of Amazon's proposed ThermoPotash. Sekita hopes to utilize the slow release characteristics of ThermoPotash to provide a more sustainable and more efficient source of potash.

Commenting on the agreement, Cristiano Veloso, President & CEO said: "Sekita has used state of the art technology over the years in order to become one of Brazil's most efficient agribusiness companies. We are pleased to work along this local group to develop a more sustainable and efficient potash fertilizer."

About Sekita

Sekita Agribusiness is one of the largest Brazilian producers of vegetables. Established in the 1970's, it currently has 350 permanent employees working in the production of garlic, carrots, corn, soybeans, wheat and milk. Their productive activities are distributed over 3000 hectares of farmland, located directly adjacent to Amazon's Cerrado Verde project. The group was one of the pioneers in adapting many crop plantation techniques to the Cerrado, Brazil's savannah, including the use of slow-release ThemoPhosphate fertilizer, limestone soil pH adjustment and crop rotation to control pests. Sekita carrots are famous throughout Brazil, It has also recently become one of the largest milk producers in the country.

About the Agreement

The memorandum of understanding between Amazon Mining and Sekita governs the testing of ThermoPotash product from the pilot plant production. Under the terms of the agreement, Amazon will provide ThermoPotash to Sekita for use in planting garlic, carrots, corn, soybeans, wheat and grazing grass for dairy cattle. Sekita will designate test plots and fund all costs associated with the testing. Sekita's investments will cover yield comparisons and chemical analysis of nutrient behaviour in the soil. The companies will jointly define the period in which the fertilizer is employed and the stages of study. Data from the studies will be jointly owned by Amazon and Sekita to be used for further development of the product, product marketing and project financing. Sekita will have pre-emptive right to the acquisition of 15% of potential ThermoPotash production at market price for a period of 24 months, in the event of successful commissioning of a ThermoPotash production facility by Amazon Mining.

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 TSX Venture 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