Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

April 03, 2009 14:50 ET

Amazon Forms Opportunities Review Committee and Provides Cerrado Verde Potash Project Update

TORONTO, ONTARIO--(Marketwire - April 3, 2009) -

Attention Business Editors:

Amazon Mining Holding Plc (TSX VENTURE:"AMZ")("Amazon" or the "Company") announces that its Board of Directors has unanimously approved the formation of an Opportunities Review Committee ("ORC") to investigate new opportunities where Amazon's strong treasury could be utilised to create additional shareholder value.

The ORC will comprise of two independent directors (Simon J. Lawrence and Kevin J. van Niekerk) and will work as necessary with management and the Technical Advisory Board to assist with evaluation. The ORC will make recommendations to the Board of Directors on special situations and merger and acquisition opportunities that could be value accretive.

Due to current market conditions, opportunities continue to be presented to the Company by various parties. Such opportunities may come from a variety of sources, including, but not limited to, current board members, management, investment banking and investment community professionals.

President and CEO Cristiano Veloso said: "In the 2nd half of 2008 Amazon implemented effective cost saving measures that allowed the company to preserve cash and position it to benefit from new opportunities. The participation of Simon Lawrence and Kevin van Niekerk on the ORC maximizes our efforts, expands our capacity to analyze such opportunities and represents an additional conduit to generate shareholders value."

Cerrado Verde Potash Project

Given the current economic climate, Amazon focused on identifying options to advance Cerrado Verde Potash Project ("Cerrado") by way of governmental participation and agricultural corporations support rather than through traditional cash intensive development means. Initial progress has included the engagement of metallurgical engineers and agronomy experts that successfully developed and tested thermo potash in the 1980's. Contributions by this team have improved Amazon's knowledge of the mineral and its likely market options. Further, this work is enabling the Company to build a business model to advance Cerrado, which if successful, should offer Brazilian growers a slow and controlled release, non-chloride and multi-nutrient fertilizer. As evidenced in initial laboratory test work conducted by Dr Eichler in 1983, this product can provide effective nutrient delivery outperforming conventional potash salts on corn plantation over a growing cycle.

Cerrado's close proximity to its target market combined with consumer eagerness to reduce reliance on costly potash imports are significant advantages that will be weighed against the key risks which include higher operating costs (due to elevated energy requirements in manufacturing) and the development of a market for the product. Before committing significant funds, Amazon will continue to work to address these risks with assistance and contribution from development partners including governmental institutions and potential consumers such as large agricultural corporations.

Amazon's management and board of directors are committed to advancing the Cerrado Verde project in order to establish its full potential.

Commenting, Cristiano Veloso said: "We are very thankful to all the Brazilian agronomists, researchers, politicians, government authorities and agriculture companies that have actively assisted us during the last months in identifying the optimal route to advance Cerrado. It is our mission to reciprocate such assistance by employing our best efforts to overcome any challenges ahead in order to supply Brazil's rapidly expanding agricultural demand for fertilizer."

Other Matters

Amazon has re-priced 250,000 options previously issued to Jed Richardson, VP Corporate Development, from $1.20 to $0.65 per share (being the closing share price of AMZ on the TSX-V on the day his appointment was announced; June 19, 2008). Amazon has issued 250,000 options to Cristiano Veloso CEO at $1.20 per share.

The Company has also granted an aggregate of 70,000 options at $0.35 per share to other management personnel.

All re-priced and new grants aforementioned are subject to TSX and regulatory approval.

About Amazon

Amazon is engaged in creating shareholder value via cost effectively advancing the Cerrado Verde Potash project and the Madeira Gold project while diligently assessing additional value-adding opportunities. Given the current and foreseeable uncertain economic climate, Amazon is preserving cash and adopting a highly conservative and risk mitigating approach to opportunity assessment and project development.

On behalf of the Board of Directors of Amazon Mining Holding Plc,

Cristiano Veloso, President & Chief Executive Officer

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.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.

Contact Information

  • Amazon Mining Holding Plc
    Cristiano Veloso
    President & Chief Executive Officer
    +44 (0) 20 8133 7607
    +44(0)20 7405 7773 (FAX)
    Email: cv@amazonplc.com

    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    (416) 866-2966
    (416) 866-8829 (FAX)
    Email: jed@amazonplc.com
    Website: www.amazonplc.com