TORONTO, ONTARIO--(Marketwire - May 31, 2011) -Verde Potash (TSX VENTURE:NPK) ("Verde" or the "Company") reported its unaudited interim consolidated financial statements for the three month period ended March 31, 2011 and provides the following corporate update.
During the three-month period ended March 31, 2011, Verde incurred a net loss of $688,665 compared to a net loss of $248,932 for the three-month period ended March 31, 2010. The increased loss in the first quarter of 2011 was due to a general rise in administrative costs related to greater exploration activity. Verde currently has a working capital position of approximately $13.6MM. The Company maintains a strong cash position and continues to progress with Cerrado Verde.
Highlights of the First Quarter
- The Group raised $9.3 million after expenses from the private placement of 2,398,100 ordinary shares of 25 pence each and a further $133,000 from the exercise of share options held by consultants and employees. Financing from private placements totalled approximately $14 million considering the $4.5 million raised at the end of last year.
- The Group initiated an extensive drilling campaign at the Apatita Phosphate Project, including 1,500m of follow on drilling at the Nau de Guerra and Alto da Serra targets, and 1,500m of drilling on five other targets along a trend over 30km long bordering the Cerrado Verde Project.
- The Group also initiated a wide-spaced drilling program at the Cerrado Verde Potash project aimed at producing a NI43-101 compliant resource estimate for the whole deposit which has a strike length exceeding 100km.
- Additional drilling is being conducted at the Cerrado Verde project to upgrade the current NI43-101 resource to measured and indicated in order to obtain the necessary mining permit.
- The group has claimed a 7,329 hectare claim area prospective for limestone. High quality calcium rich limestone is required for producing ThermoPotash and is used in the proposed process for producing conventional potash. The Company will conduct a comprehensive drill program.
In April 2011 the Minas Gerais State government signed a memorandum of understanding with Verde. Its objective is to provide the Group with support for potential financing of working capital and fixed investment in order to ensure the implementation in the State of Minas Gerais of an industrial unit for manufacturing ThermoPotash, Potassium Chloride and Potassium Sulfate and the installation of a distribution centre for their commercialization.
In May 2011 the Group reported high grade, wide potash ("K2O") drill intersections from surface including 62m @ 10.3% K2O, 46m @ 10.4% K2O and 36m @ 11% K2O. Drilling has successfully extended high grade potash mineralization in all new targets tested at the Cerrado Verde Potash Project.
The Group also reported the results of product efficacy tests performed by the University of Uberlandia, Brazil. ThermoPotash results were up to 17% better than KCl, confirming its efficiency as a potash fertilizer and demonstrating the superiority of a slow release product.
President and CEO Cristiano Veloso remarked, "We are pleased with the progress we have been able to report to our shareholders since the start of 2011. We have set aggressive development milestones for this year and have added key personnel to ensure we reach such goals. Our technical team has been boosted by Mr. Laerte de Paula Ferreira, a Mechanical Engineer, and Mr. Rodolfo Rezende Silva, a Process Engineer; and Mr. Miguel Arcanjo will act as our controller in Brazil. We are also pleased to announce that Dr. Richard Garnett has been added to our Board of Directors. Dr. Garnett is already familiar with Verde's plans and objectives, having served on the company's technical advisory board since October 2008. This team will be fundamental as Verde Potash advances from development to production."
Dr. Richard Garnett – Director
Dr. Garnett has 40 years of experience working with a wide range of minerals in jurisdictions from Canada, South Africa, and South East Asia to Brazil. He has held senior positions with Rio Tinto, Anglo American, Hudson Bay Mining and Diamond Fields Resources, where he was instrumental in the early recognition and exploration of the Voisey's Bay nickel deposit. A mining engineer by training, he holds a PhD. in Economic Geology from the Royal School of Mines (UK) and a Master of Business Administration from Cranfield University.
Laerte de Paula Ferreira – Mechanical Engineer
Mr. Ferreira has 39 years of experience in the cement and steel industries. He studied as a Mechanical Engineer (Cefet) and holds a Mechanical Engineering Diploma (Senai). He has previously worked for CSN, Soeicom and Matsufo. Mr. Ferreira was involved in the planning and construction of three of Brazil's largest cement plants.
Rodolfo Rezende Silva – Process Manager
Mr. Silva has 17 years of experience. He studied as a Chemical Engineer (UFMG), with Specialization in Production Engineering, holds an MBA (FGV) and an MBA in Finance (IBMEC). His past experience includes work with some of Brazil's 100 largest industries, including Usiminas S/A, Magnesita Refratários S/A, Vilma Alimentos and AMBEV.
Miguel Arcanjo – Controller
Mr. Arcanjo has 25 years of experience including senior financial positions in large international companies and Brazilian mining groups. He studied as an Economist (PUC), and holds a post graduate degree in Business (IBMEC) and an MBA (FEAD). Mr. Arcanjo was formerly the CFO for Mineração Lagoa Seca, and controller at Leroy Merlin and Pif Paf Alimentos. His past work includes a Feasibility Study and Business Plan for an ethanol plant (Unitas/MAN FERROSTAAL).
About Verde Potash
Verde Potash is a fertilizer exploration and development company; it was founded and is led by Brazilians. Verde is developing the Cerrado Verde project in Brazil, a source of potash-rich rock from which the company plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product named ThermoPotash. Founded as Amazon Mining in 2005, the Company changed its name to Verde Potash in April 2011 to better reflect its core business. Verde is also exploring for phosphate and limestone.
About Cerrado Verde
Cerrado Verde is a unique project: 1) its high grade potash rock is found at surface, allowing faster construction of a scalable and low Capex operation; 2) it is located in the midst of the world's third largest fertilizer market and its fastest growing one; 3) it connects to Brazil's largest fertilizer distribution districts via existing and high quality infra-structure.
On behalf of the Board of Directors of Verde Potash, Cristiano Veloso, President and CEO.
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 Verde's website (www.verdeplc.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.
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