Rio Verde Minerals Development Corp.

Rio Verde Minerals Development Corp.

November 14, 2011 10:57 ET

Rio Verde Minerals Announces Third Quarter 2011 Results and Provides Corporate Update

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2011) - Rio Verde Minerals Development Corp. (TSX:RVD) ("Rio Verde" or the "Company") (formerly EM Resources Inc.) is pleased to report its financial results and related management discussion and analysis for the three and nine months ended September 30, 2011. The documents have been filed on SEDAR at

During the third quarter of 2011, Rio Verde incurred a net loss of CDN$2,177,743 (CDN$0.03 per share). Among the factors that contributed to the net loss in this period were non-exploration expenses, such as legal fees, audit and accounting charges, and office and administration charges. For the three months ended September 30, 2011, capitalized acquisition and exploration expenses amounted to CDN$2,683,511 at the Sergipe Potash Project, CDN$10,314,039 at the Fosfatar Phosphate Project (which includes both acquisition costs and additions), and CDN$649,866 at the suite of Phosphate Projects.

As at September 30, 2011, Rio Verde had working capital of CDN$12,203,147. As of the date of this press release the Company's cash position is approximately CDN$9.7 million.

As at September 30, 2011, Rio Verde had total assets of CDN$44,268,195, including CDN$31,758,997 in exploration and evaluation assets.

Financial Statement & Corporate Development Highlights

On July 28, 2011, the plan of arrangement involving Rio Verde Minerals Corp., EM Resources Inc., EM Subco (BVI) Inc. and Talon Metals Corp. was completed. (See August 2, 2011: "Rio Verde Minerals Development Corp. (formerly EM Resources Inc.) Announces Completion of Plan of Arrangement and Upcoming Listing on Toronto Stock Exchange").
On August 3, 2011, the Company's shares commenced trading on the Toronto Stock Exchange under the symbol RVD.
On September 9, 2011, the Company completed the acquisition of a 100% operating interest in Fosfatar Mineração Ltda. ("Fosfatar"), a private company with phosphate assets in the north and northeastern regions of Brazil, by acquiring 100% of the issued and outstanding shares of Tererro Overseas Ltd., the parent company of Fosfatar. (See September 12, 2011, "Rio Verde Announces the Closing of the Acquisition of Fosfatar Mineração Ltda.") Rio Verde intends to commence production at Fosfatar in 2012.
On October 24, 2011, the Company announced the results of an independent National Instrument 43-101 ("NI 43-101") Technical Report completed on the Fosfatar Phosphate Project at the Sapucaia Phosphate Target ("Sapucaia") and the Boa Vista Phosphate Target ("Boa Vista"). (See October 24, 2011: "Rio Verde Minerals Announces NI 43-101 Mineral Resource for Fosfatar Phosphate Project, Brazil.") The Resource Estimate was prepared by Coffey Consultoria e Serviços Ltda. ("Coffey"), a branch of Coffey International Ltd., in accordance with NI 43-101 standards. Highlights of the NI 43-101 Technical Report include:
A combined mineral resource estimate for Sapucaia and Boa Vista of approximately 1.93 million tonnes, with an average grade of approximately 19% P2O5 (using a 3% P2O5 cut-off); and
The grade of the deposit establishes Sapucaia as having the potential to become one of the highest-grade phosphate mines in Brazil.
The Company has commissioned Coffey to complete an NI 43-101 Preliminary Economic Assessment (PEA) at the Fosfatar Phosphate Project, which is expected in December 2011.
Drilling is underway at Rio Verde's Sergipe Potash Project on the project's first target, the Sergi Target. At this target, Rio Verde is twinning an old Petrobras hole located 115m to the northwest of Rio Verde's hole, which had previously demonstrated potash mineralization of up to 25m. Highlights include:
An initial program consists of drilling 4,050m, split into 3 holes of 1,350m each, with each hole taking approximately 90 days to be completed and analyzed.
Completion and assay results of the first drill hole is expected within the next 4 to 6 weeks.
The Company's first potash NI 43-101 resource is anticipated within the next six months.

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