(Brazil Potash) May 31, 2012 – Brazil Potash Corp. (“BPC” or the “Company”) is pleased to announce the successful completion of a US$58.66 million capital raising to further the exploration for potash at the Company’s Amazon Basin project, Brazil. The Project is located in Amazonas State, Brazil, adjacent to Petrobras’ Fazendinha and Arari Potash deposits.
Existing shareholders and new Brazilian based shareholders participated in the capital raising. One of the cornerstone investors in this round is CD Capital Natural Resources Fund II (the “CD Capital Fund”) which committed US$24.6 million of the total US$58.66 million of the fundraising. The CD Capital Fund is a private equity global natural resources fund that invests in private company mining projects that demonstrate large scale potential and require capital to execute the resource definition stage of development. CD Capital has a strong track record of identifying and investing in world class mining assets from an early stage particularly in Latin America.
David Gower, President and Director of the Company, comments: “We are excited to have CD Capital on board as a strong shareholder that can provide value through their deep industry and operational expertise. We also welcome their representative on the board, Carmel Daniele. CD Capital experience and track record of accessing capital to fund the development of Brazilian natural resource investments will be invaluable going forward.
Ms Daniele, B.Ec, LLM is the founder of London based private equity fund CD Capital and has over 20 years of mining investment experience. She has a Bachelor of Economics, from the University of Adelaide and a Master of Laws (Corporate & Commercial) from the University of Adelaide. She is a Fellow of the Institute of Chartered Accountants.
Stan Bharti, Chairman of the Company, comments it has made significant progress towards defining a potash resource in the Amazon Basin. “We have been working in the basin since 2007 where we believe there is potential for multiple potash deposits to be discovered. We are very happy that existing shareholders participated in this capital raising and we welcome our new Brazilian based shareholders onto the register.”
The Company currently has contracts with two Brazilian drilling companies.
The Company will continue drilling until a potash resource of sufficient size to merit economic studies has been outlined. Once this is completed a pre-feasibility study will be undertaken followed by a definitive feasibility study. It is the intention of the Company to list on BOVESPA in Q1 2013.
Environmental permits and access agreements with surface land holders are in place. The Company employs a best practice policy with respect to maintaining the highest environmental standards and each drill site is progressively reclaimed upon completion.
About Brazil Potash Corp
Brazil Potash Corp. and its 100% owned Brazil incorporated subsidiary, Potássio do Brasil Ltda. is a private Brazilian potash exploration company with offices located in Belo Horizonte and Autazes, Brazil, which supports the work being carried out on its project in Amazonas State. Potássio do Brasil has no operating potash mines and has no direct or indirect association with any of the current potash producers either in Canada or elsewhere in the world. The Company holds key mineral rights in the 400-kilometer long Amazon potash basin. Geological, seismic and borehole surveys indicate the basin has similar scale, geological properties and is of similar age as the Saskatchewan basin in Canada.