TORONTO, August 30, 2011 /PRNewswire/ --
Company maintains a strong balance sheet after intense H1 development program
Verde Potash (TSX-V: "NPK") ("Verde" or the "Company") is pleased to announce that its unaudited interim consolidated financial statements for the three month period ended June 30, 2011 have been reported and provides the following corporate update.
Verde currently has a working capital position of approximately $9.2MM. The Company maintains a strong cash position and continues to progress with Cerrado Verde. During the three-month period ended June 30, 2011, Verde incurred a net loss of $1,913,432 compared to a net loss of $670,281 (before impairment losses of $424,091) for the three-month period ended June 30, 2010. This increased loss of $1,243,151 was mainly due to the Company's decision to write off the Madeira gold project and an increased share based payment charge.
Highlights of the Second Quarter
- The Company signed a memorandum of understanding with the State government of Minas Gerais that pledges support for the advancement of Cerrado Verde. (See release dated April 7, 2011)
- Drilling has successfully extended high grade potash mineralization in all new targets tested at the Cerrado Verde Potash Project, which is amenable to open pit mining with a maximum depth of 80 metres and inside a key agricultural market. (See release dated May 9, 2011)
- ThermoPotash outperformed KCl by as much as 17% in efficacy tests performed by the University of Uberlandia. (See release dated May 16, 2011)
- The Company reported the discovery of a major high grade high quality limestone unit located approximately 100km from the Cerrado Verde Potash project. (See release dated June 22, 2011)
- The Company hired key technical and administrative personnel as well as added Dr. Richard Garnett to their Board of Directors. (See release dated May 31, 2011)
Subsequent Events
In August 2011, the Company received an independent resource estimate for the Cerrado Verde Potash project. The estimate comprises an indicated resource of 74 million tonnes with an average grade of 9.22 % K2O and an inferred resource of 1.07 billion tonnes with an average grade of 9.37 % K2O (applying a 7.5% K2O cut-off). All potash mineralization is found from surface to a maximum depth of 80 metres, rendering the resource amenable to open pit mining.
The new resource was estimated for five out of 13 of Cerrado Verde's targets, in which 8,950m of drilling was performed in 143 holes with drill spacing ranging from 400m by 400m to 200m by 200m. An additional eight targets have been tested which will be reported during Q4/2011.
President and CEO Cristiano Veloso remarked, "Verde retains a strong cash position after significant investment in the company's development was made in the first half of the year. As a result of this investment, we could confirm Cerrado Verde as one of the largest open pittable potash deposits controlled by a single company. Our product development program has successfully produced over 200 tonnes of ThermoPotash. We have also conducted product trials confirming its efficiency. The Company expects to announce in the coming months: resource calculation for the Calcario Limestone project; exploration results for the Apatita Phosphate project; engineering progress on Cambridge process and further ThermoPotash product trials."
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
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. 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 (http://www.verdeplc.com) and
filed on SEDAR (http://www.sedar.com) and any future amendments to such.
Readers are also directed to the cautionary notices and disclaimers
contained herein.
For further information:
Cristiano Veloso
President & Chief Executive Officer
Tel: +44(0)20-8133-7607
Fax: +44(0)20-7405-7773
Email: cv@verdepotash.com
OR
Jed Richardson
VP Corporate Development
Tel: +1-416-866-2966
Fax: +1-416-866-8829
Email: jed@verdepotash.com
http://www.verdepotash.com
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