Verde’s plan is premised on the technical practicality of the project’s staged scale-up in order to reduce risk and to accelerate cash flow generation from its large potash resource in Brazil. The strategy comprises two phases.
Phase 1: ThermoPotash
In Phase 1 the Company intends to build a plant (the ‘Flex Plant’) with a capacity of approximately 1,000 tonnes per day (“tpd”) for the production of ThermoPotash. ThermoPotash is a controlled-release, non-chloride, multi-nutrient fertilizer that is ideally suited for Brazilian soils. ThermoPotash is a new product, which is expected to compete with other premium, multi-nutrient, non-chloride potash fertilizers currently in the Brazilian market, such as potassium sulphate (SOP) and potassium nitrate (NOP). The Flex Plant will also be operated to process KCl in order to further develop scale-up and commercialization of the process and with the intent of securing performance guarantees on a 12,000 tpd kiln for KCl production.
Phase 2: KCl
Phase 2, developed in parallel with Phase 1, would focus on large scale KCl production. The Company has developed and secured patents on a process by which the potash rich rock (potassium silicate) from Cerrado Verde can be used to produce potassium chloride (KCl), the most commonly used potash fertilizer in the world.
Verde controls a limestone property located approximately 100km from the Cerrado Verde project in Minas Gerais state. The company has drilled the limestone asset and received a mineral resource estimate in the indicated and inferred category, which will allow Verde to secure the supply and guarantee the quality of limestone for the production of both ThermoPotash and KCl.