19 March 2014 22:08 [Source: ICIS news]
HOUSTON (ICIS)--Fertilizer developer Verde Potash announced on Wednesday that the Brazilian government has confirmed it will receive $105m for its Cerrado Verde Potash project from Inova Agro, a funding programme established to provide support for agricultural projects.
Toronto-based Verde said the joint support plan, where the funding structure will be detailed, including the timeline for distribution, will be received on 17 April.
The Cerrado Verde project is located in the western state of Minas Gerais and the company plans on producing ThermoPotash and potassium chloride (KCI) using strip mining techniques.
ThermoPotash is a controlled released non-chloride multi-nutrient version of potash developed by the company to compete with other premium non-chloride potash fertilizers within the Brazilian market.
The programme funding will be used to build a greenfield plant capable of producing 1,000 tonnes per day of ThermoPotash and that the award will cover approximately 90% of the planned expenses, including investments in market development and working capital.
The funding from the programme is to be provided via loans with subsidised interest rates, equity investment and non-reimbursable project investment grants from the Brazilian Development Bank (BNDES) and the Financing Agency for Studies and Projects, both of which are branches of the Brazilian government that operate Inova Agro.
Approximately $4.2m of the total capital can be provided as a non-reimbursable project investment grant.
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