Rio Verde Minerals Development Corp.

Rio Verde Minerals Development Corp.

September 12, 2011 07:01 ET

Rio Verde Minerals Announces the Closing of the Acquisition of Fosfatar Mineracao Ltda.

TORONTO, ONTARIO--(Marketwire - Sept. 12, 2011) - Rio Verde Minerals Development Corp. (TSX:RVD) ("Rio Verde" or the "Company") is pleased to announce that it has completed the previously announced acquisition of a 100% operating interest in Fosfatar Mineração Ltda. ("Fosfatar") and its portfolio of phosphate assets in the North and Northeastern regions of Brazil. The transaction was initially announced in a press release dated August 4, 2011.

Pursuant to the purchase agreement, Rio Verde has acquired all of the outstanding shares of Terrero Overseas Ltd., which holds a 100% beneficial interest in Fosfatar. As partial consideration for the acquisition, Rio Verde has issued an aggregate of 14,127,219 ordinary shares to Biscoe Trading Ltd., Colfax Management Inc. and Moriarty Services Inc. (collectively, the "Sellers"). As detailed in the August 4, 2011 press release, the balance of the purchase price for the acquisition will be paid to the Sellers following the commencement of commercial production at Fosfatar's mineral projects.

Rio Verde expects that this transaction will add immediate value to the Company by moving it from pure explorer to producer status in the short term, and by generating near-term cash flow to be used to self-fund its exploration and development plans.

Fosfatar's flagship project, the Sapucaia Phosphate Project ("Sapucaia"), is shovel-ready, with most of the equipment acquired and on-site. The Company's preliminary timeline estimates that production at Sapucaia will commence in the first half of 2012, with an estimated initial production rate of 100,000 tpy of high-grade aluminum phosphate, later growing to 150,000 tpy. A resource definition exploration campaign was performed in 2010 and 2011 and the results will be reported in a Canadian National Instrument 43-101 Technical Report, which is expected to be filed by November 2011. Rio Verde has also commissioned an independent agronomic assessment of the final product, the results of which will also be available by November 2011.

About Fosfatar Mineração Ltda.

Fosfatar possesses multiple phosphate assets in the North and Northeastern regions of Brazil, close to both the port city of Belém, in Pará state, and to numerous fertilizer consumers. Initial pilot tests by Fosfatar at its flagship project, the Sapucaia Phosphate Project, indicate the potential to fast-track production of aluminum phosphate at low costs by utilizing a well-tested recovery process that has been used with other minerals. Rio Verde is currently conducting a technical due diligence at Sapucaia to confirm, and potentially expand, current delineated occurrences (currently non NI 43-101 compliant) and to further test the applicable recovery process.

About Rio Verde

Rio Verde Minerals Development Corp. (TSX:RVD) is a publicly traded company focused on the exploration and development of fertilizer projects in Brazil. The Company's goal is to become the leading Brazilian fertilizer mining and development company by selecting prime assets that are near infrastructure, with known mineralization, in regions without significant social or environmental issues. The Company plans to fast-track the best projects to development to create stakeholder value.

Rio Verde holds one potash project and a portfolio of phosphate projects in Brazil. Potash and phosphate fertilizers have favourable supply and demand dynamics, and Rio Verde has a significant cost advantage by being based in Brazil, a country that imports about 90% of its potash and 50% of its phosphate needs. Rio Verde's near-term primary objective is to focus its potash exploration on establishing a Canadian National Instrument 43-101 resource.

Forward-Looking Statements

This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of which differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of potash and phosphate, changes to regulations affecting the Company's activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company's proposed drilling program, exploration costs varying significantly from estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company's projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry.. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

Contact Information

  • Rio Verde Minerals Development Corp.
    Stephen Keith
    President & CEO
    1 (416) 368-8288

    Rio Verde Minerals Development Corp.
    Alex Penha
    VP Corporate Development
    1 (416) 368-1573