Verde Reports Q2 Financials
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
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.
For further information:
Cristiano Veloso
President & Chief Executive Officer
Tel: +44(0)20-8133-7607
Fax: +44(0)20-7405-7773
Email: [email protected]
OR
Jed Richardson
VP Corporate Development
Tel: +1-416-866-2966
Fax: +1-416-866-8829
Email: [email protected]
http://www.verdepotash.com
