Business
Verde Provides Clarification on Performance Guarantees for KCl Production
TORONTO , Aug. 16, 2013 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") a...
About this update from Verde Agritech Ltd
[{"type":"text","content":"\n\n\nTORONTO, Aug. 16, 2013 /CNW/ - Verde Potash (TSX: \"NPK\") (\"Verde\" or the \"Company\") announces that, as a result of\n a review by the Ontario Securities Commission (OSC), the Company is\n issuing this news release to provide clarity on the Company's\n previously announced performance guarantees from FLSmidth Inc. with\n respect to producing KCl using a kiln of a size that can process less\n than 12,000 tonnes per day (\"tpd\"). Further to the Company's May 13,\n 2013 news release (which announced the performance guarantees), Verde\n would like to clarify that FLSmidth offered to provide performance\n guarantees on kilns that can process 3,000 tpd instead of 12,000 tpd\n that would be commensurate with uncertainties and risks that are\n inherent in a first-time scale-up from a laboratory pilot unit.\n Management is not considering the option of running a kiln that can\n process 3,000 tpd since that would be small for Verde's KCl project.\n The Company has filed a material change report in respect of the May\n 13, 2013 news release.\n\n\nSince May 2013, Verde has gone through changes to its management team\n and board of directors. The new team, with its collective depth and\n experience, has been reviewing strategic alternatives for developing a\n potash fertilizer product to advance the Cerrado Verde Project. The\n team's focus is on the project's unique attributes; its potential\n scalability and its location which provides a significant logistical\n advantage.\n\n\nAbout Verde Potash\n\n\nVerde Potash, a Brazilian fertilizer development company, is focused on\n advancing the Cerrado Verde project located in the heart of Brazil's\n largest agriculture market. Cerrado Verde is the source of a\n potash-rich deposit from which the Company intends to produce potassium\n chloride (KCl). In addition, the Company is developing its Calcario\n limestone project, limestone being a key raw material in the production\n of KCl.\n\n\nAbout the Cerrado Verde Potash Project\n\n\nCerrado Verde is a unique project: 1) its high grade potash rock\n outcrops and is amenable to strip mining, allowing fast construction of\n a scalable operation; 2) it is located in the midst of the world's\n third largest and fastest growing fertilizer market; 3) it connects to\n Brazil's largest fertilizer distribution districts via existing and\n high qu...