2.5 million tonnes per year potash mining concession granted to Verde

Belo Horizonte, Brazil. Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce that it has received a Mining Concession[1] for extraction of up to 2,500,000 tonnes per year (“tpy”) of potash rich ore, which is processed into Verde’s multinutrient potassium products, BAKS® and K Forte®, sold internationally as Super Greensand®, (the “Product”). With this new Mining Concession, the Company is now fully permitted to produce up to 2,833,000 tpy.

“This mining concession marks one more milestone for Verde. It will supply raw material for our Plant 2, which will boost production and accelerate sales growth. It is also another important governmental stamp of approval for our efforts towards reducing Brazil’s crippling dependency on imported potash”, said Cristiano Veloso, Verde’s Founder and CEO.

On March 26, 2020, the National Mining Agency (“ANM”), Brazil’s mining regulatory body, approved the Feasibility Study (“PAE”, from Plano de Aproveitamento Econômico) for the extraction of 25,000,000 tpy for Verde’s Mine Pit 2, as part of the Mining Concession Application (known in Brazil as Requerimento de Lavra). The Feasibility Study details the technical and economic viability of the project and indicates, among other information, the mining method and scale of production.

The Mining Concession was preceded by an Environmental License assessed and issued at the state level by Minas Gerais’ Environmental and Sustainable Development Secretary (known in Brazil as Secretaria de Estado de Meio Ambiente e Desenvolvimento Sustentável). The Company had applied for the 2,500,000 tpy Environmental License for Mine Pit 2 on March 30, 2020, and it was approved on December 23, 2020.

This Mining Concession was granted to the Company as an expansion to the existing 100,000 tpy Mining Permit (in Brazil known as Guia de Utilização), previously granted for Mine Pit 2. In total, the Company is now permitted to extract up to 2,600,000 tpy from Mine Pit 2 alone.

Under Brazilian law, a pit is fully permitted to mine when the Company holds both a Mining Concession/Permit and Environmental License for that area. With this latest Mining Concession, Verde is now fully permitted to mine 2,833,000 tpy (please see the topic “Summary of Licenses and Permits” below) and has submitted concurrent mining and environmental applications for an additional 2,500,000 tpy, still pending approval.


Summary of Licenses and Permits

The Company has 3 different mine pits, each at different permitting stages and targeting different volumes, as summarized in the table below.

Mine Pit Fully Permitted to Produce (tpy) Mining (tpy) Environmental (tpy)
Granted Pending Granted Pending
1 233,000 233,000 0 233,000 0
2 2,600,000 2,600,000 22,500,000 2,600,000 0
3 0 49,800 2,500,000 0 2,500,000
Total 2,833,000 2,882,800 25,000,000 2,833,000 2,500,000


2022 Guidance

On January 10, 2022, Verde issued a press release announcing the 2022 and 2023 guidance. The Company’s target is detailed on a quarterly basis, reflecting the market demand’s seasonality, as follows:

Period Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022
Sales target (tonnes) 115,000 200,000 250,000 135,000 700,000
Revenue (C$’000) 10,070 21,954 27,228 13,011 72,263
EBITDA (C$’000) 1,358 10,155 13,414 3,506 28,434
EPS (C$) 0.02 0.18 0.25 0.06 0.50


The 2022 guidance is underpinned by the following assumptions:

  • Grant of mining concession
  • Average Brazilian Real (“R$”) to Canadian dollar exchange rate: C$1.00 = R$4.40
  • Average KCl CFR Brazil of US$500, compared to current price of US$760 per tonne (as per the market intelligence firm Acerto Limited weekly price as of December 3, 2021).
  • Sales Incoterms: 50% CIF and 50% FOB
  • Sales channels: 50% direct sales and 50% indirect sales


2023 Guidance

For 2023, Verde’s sales volume target is 1.4 million tonnes. This target represents a potential 100% growth Year-on-Year (“YoY”).


About Verde AgriTech

Verde is an agricultural technology company that produces fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.


Corporate Presentation

For further information on the Company, please view shareholders’ deck: https://verde.docsend.com/view/p9qyzinwe64ii4ke


Investors Newsletter

Subscribe to receive the Company’s updates at:


The last edition of the newsletter can be accessed at: https://bit.ly/InvestorsNL-November2021


Cautionary Language and Forward-Looking Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.


For additional information please contact:

Cristiano Veloso, President, Chairman & Chief Executive Officer

Tel: +55 (31) 3245 0205; Email: investor@verde.ag

www.investor.verde.ag | www.supergreensand.com | www.verde.ag


[1] Mining Concession (known in Brazil as “Portaria de Concessão de Lavra”): guarantees to the owner the power and duty to explore the mineral deposit until it is exhausted, without a definite term. The title can only be obtained by mining companies and only after undertaking the authorised exploration through an exploration authorisation and subsequent approval of the Final Exploration Report. One of the essential documents for requesting a mining concession is the Feasibility Study, which must demonstrate the technical and economic viability of the project and indicate, among other information, the mining method, the planned scale of production and the mine closure plan.

233,000 Tonnes per Year License Granted to Verde

BELO HORIZONTE, Brazil, Aug. 20, 2020 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce it has received the full environmental license for mining up to 233,000 tonnes per year (“tpy”) of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (the “Product”).

The Company had been awarded the Mining Concession for this area, Mine Pit 1, in Q3 2019. The applications for Environmental Licenses for Mine Pit 1 started back in 2014. On August 19, 2020, the final stage of environmental permitting that authorizes the start mining activities, called ‘Operational License’, was published by the state government. The License is valid until 2030.

With this latest Operational License the Company is fully permitted to mine 432,800 tpy (i.e. Verde holds both a mining Concession/Permit and Environmental Licenses) and has submitted applications for an additional 2,500,000 tpy still pending approval.

“This license represents another great step for Verde’s expansion plans. Though we will not reduce the drive towards obtaining the 2,500,000 tpy Mining Concession and Environmental Licenses. In parallel Verde will continue to research and develop new sustainable technologies to support global food production,” said Cristiano Veloso, Verde’s founder, President and CEO.


Summary of Licenses and Permits 

The Company has 3 different mine pits, each at different permitting stages and targeting different volumes, as summarized in the table below.

Mine Pit Fully Permitted to
Produce (tpy)
Mining (tpy) Environmental (tpy)
Granted Pending Granted Pending
1 233,000 233,000 0 233,000 0
2 150,000 150,000 25,000,000 200,000 2,500,000
3 49,800 49,800 2,500,000 49,800 0
Total 432,800 432,800 27,500,000 482,800 2,500,000


Q2 2020 Conference Call Details 

The Company will host a conference call on Wednesday, August 26, 2020 at 11:30 am Eastern Time (4:30 pm Greenwich Time), to discuss Q2 2020 results and provide an update. Subscribe at the following link and receive the conference details by email.

Date: Wednesday, August 26, 2020
Time: 11:30 am Eastern Time (4:30 pm Greenwich Time)
Subscription link: https://bit.ly/VerdeAgriTech-Q2-2020


Investors Newsletter

Verde has a newsletter for investors, with monthly updates about the Company. The last edition can be accessed at https://bit.ly/InvestorsNL-July2020.

Subscription link: http://cloud.marketing.verde.ag/InvestorsSubscription

About Verde AgriTech

Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.

For additional information please contact:

Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verde.ag

www.investor.verde.ag | www.supergreensand.com | www.verde.ag

Cautionary Language and Forward Looking Statements
All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to:

(i) the estimated amount and grade of Mineral Resources and Mineral Reserves;
(ii) the PFS representing a viable development option for the Project;
(iii) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods;
(iv) the estimated amount of future production, both produced and sold; and,
(v) estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on Verde’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include:

(i) the presence of and continuity of resources and reserves at the Project at estimated grades;
(ii) the geotechnical and metallurgical characteristics of rock conforming to sampled results; including the quantities of water and the quality of the water that must be diverted or treated during mining operations;
(iii) the capacities and durability of various machinery and equipment;
(iv) the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
(v) currency exchange rates;
(vi) Super Greensand® and K Forte® sales prices, market size and exchange rate assumed;
(vii) appropriate discount rates applied to the cash flows in the economic analysis;
(viii) tax rates and royalty rates applicable to the proposed mining operation;
(ix) the availability of acceptable financing under assumed structure and costs;
(x) anticipated mining losses and dilution;
(xi) reasonable contingency requirements;
(xii) success in realizing proposed operations;
(xiii) receipt of permits and other regulatory approvals on acceptable terms; and
(xiv) the fulfilment of environmental assessment commitments and arrangements with local communities.

Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com) for the year ended December 31, 2019. Verde cautions that the foregoing list of factors that may affect future results is not exhaustive.

When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law.