Verde's shareholders to vote on proposal to ban sales to Amazon Rainforest regions in a commitment to combat deforestation
SINGAPORE, May 24, 2023 (GLOBE NEWSWIRE) -- Verde AgriTech Ltd (TSX: “NPK”) ("Verde” or the “Company”) is pleased to announce the proposal of a resolution to be voted on at the upcoming 2023 General and Special Meeting of Shareholders (the “Meeting”) to stop all sales of Verde's multinutrient potassium products, BAKS® and K Forte® sold internationally as Super Greensand® (the “Product”), to 218 municipalities, totalling 2.23 million km2, covered predominantly by Amazon rainforest (the “Resolution”).1 If the resolution is approved, to those municipalities the Company will only sell the Product for reforestation projects that plant native trees.
"The Amazon rainforest is a vital ecosystem to the globe, providing essential functions such as carbon sequestration, biodiversity preservation, and climate regulation. Sadly, the Amazon faces a grave threat from illegal deforestation, which often times is committed for the purposes of replacing it with farmland. This proposed Resolution aligns with Verde's core values and underscores our unwavering commitment to sustainable practices in Brazilian agriculture, which mostly already abides by high standards of sustainability. Brazilian farmers outside of the Amazon region have demonstrated remarkable technological advancements and achieved record productivity in recent years, showcasing their dedication to efficient and sustainable food production, while preserving huge areas of native vegetation," comments Cristiano Veloso, Verde AgriTech's Founder and CEO.
"This Resolution is not expected to impact Verde's revenue in the medium to long run, but it serves as a powerful testament to our enduring dedication to environmental responsibility and will hopefully help set an example to be followed by other companies," concluded Mr. Veloso.
Recognizing the paramount importance of safeguarding the Amazon rainforest, Verde’s Board of Directors (the “Board”) has unanimously recommended that shareholders vote in favor of the Resolution proposed by the Company's executives.
Aligned with the Company's purpose of improving the health of all the people and the Planet, the Resolution represents a significant step in the ongoing battle against deforestation in one of the world's most biologically rich regions.
Overall, the initiative will protect a territory encompassing a total of 2.23 million km².2 To put its magnitude into perspective, this area surpasses the combined size of Japan, Germany, the United Kingdom, France, and Italy, nations that collectively rank among the top ten largest economies worldwide.
If approved at the Meeting, the Resolution shall promptly come into effect, and the Board will conduct annual reviews to ensure its unwavering efficacy in upholding the Company's commitment to sustainability and the preservation of the Amazon rainforest.
To date, Verde has invested over C$111 million in research and development, construction of Plant 1 and Plant 2, and access improvement. In 2022, the Company became Brazil's largest potash producer by capacity, being able to produce up to 3 million tonnes of Product per year. The Company is also the world's largest manufacturer of potash fertilizers approved for organic agriculture.
Enhanced Rock Weathering
Verde has been assessing the carbon capture potential of its Products, through independent studies conducted at Newcastle University. The studies are evaluating a natural process termed Enhanced Rock Weathering (“ERW”), whereby CO2 is permanently removed from the atmosphere by reacting with the decomposition of silicate minerals present within the Product’s raw material.
2023 Annual General and Special Meeting of shareholders
The 2023 Annual General and Special Meeting of shareholders of the Company will be held on June 22, 2023 at 6 p.m. (SGT), at 16 Collyer Quay, #17-00, Singapore, 049318. Shareholders will be able to observe the Meeting virtually utilizing ZOOM and are invited to submit questions in advance, through the following links:
- Join the Meeting: https://bit.ly/AnnualMeetingOfShareholders_2023
- Submit questions in advance: https://bit.ly/SubmitQuestions_AGM2023
The Meeting’s Management Information Circular are available on SEDAR at www.sedar.com and on the Company’s website at www.investor.verde.ag.
About Verde AgriTech
Verde is an agricultural technology Company that produces potash 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.
Verde is a fully integrated Company: it mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product.
Verde’s focus on research and development has resulted in one patent and eight patents pending. Among its proprietary technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.3 Currently, the Company is fully licensed to produce up to 2.8 million tonnes per year of its multinutrient potassium fertilizers K Forte® and BAKS®, sold internationally as Super Greensand®. In 2022, it became Brazil's largest potash producer by capacity.4 Verde has a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).5 This amounts to 295.70 million tonnes of potash in K2O. For context, in 2021 Brazil’s total consumption of potash in K2O was 6.57 million6.
Brazil ranks second in global potash demand and is its single largest importer, currently depending on external sources for over 97% of its potash needs. In 2022, potash accounted for approximately 3% of all Brazilian imports by dollar value.7
Corporate Presentation
For further information on the Company, please view shareholders’ deck:
https://verde.docsend.com/view/3i28qwrquwjznrin
Investors Newsletter
Subscribe to receive the Company’s updates at: http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at: https://bit.ly/InvestorsNL-April2023
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;
(v) timing of disclosure for the PFS and recommendations from the Special Committee;
(vi) the Company’s competitive position in Brazil and demand for potash; and,
(vii) 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, but are not limited to:
(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, 2021. 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.
For additional information please contact:
Cristiano Veloso, Founder, Chairman & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
1 The states of Amazonas, Acre, Roraima, and Amapá were entirely considered as Amazon Rainforest. For states that include partial forest areas, municipalities with less than 500 hectares of planted area were considered predominantly Amazon Rainforest.
2 Source: Brazilian Institute of Geography and Statistics (IBGE), Municipal Digital Mesh of the Brazilian Political-Administrative Division (2022). Available at: https://www.ibge.gov.br/geociencias/organizacao-do-territorio/malhas-territoriais/15774-malhas.html?edicao=36516&t=acesso-ao-produto
3 Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9
4 See the release at: https://investor.verde.ag/verde-starts-ramp-up-of-plant-2s-second-stage-to-reach-production-of-2-4mtpy/
5 As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR in 2017. See the Pre-Feasibility Study at: https://investor.verde.ag/wp-content/uploads/2021/01/NI-43-101-Pre-Feasibility-Technical-Report-Cerrado-Verde-Project.pdf
6 Source: Brazilian Fertilizer Mixers Association (from "Associação Misturadores de Adubo do Brasil", in Portuguese).
7 Source: Brazilian Comex Stat, available at: http://comexstat.mdic.gov.br/en/geral
