Minas Gerais State Government Commits to Financially Support Amazon's Cerrado Verde Project
Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") is pleased to announce that the Minas Gerais State government ("the State") has signed a memorandum of understanding ("Memorandum") to provide Amazon with support in terms of potential financing for working capital and fixed investment, with funds administered by the development bank of Minas Gerais (BDMG). The stated objective of the Memorandum is to enable the implementation, by Amazon, of an industrial unit and the installation of a distribution centre located in the State of Minas Gerais destined for the manufacturing and commercialization of ThermoPotash, Potassium Chloride and Potassium Sulfate. The Memorandum was signed by a collaboration of key personnel interested in the development of the Cerrado Verde Potash Project, specifically; Minas Gerais State Governor Antonio Augusto Junho Anastasia, Dorothea Fonseca Furquim Werneck, Secretary of the State Department for Economic Development, Leonardo Maurício Colombini Lima, Secretary of the State Treasury Department, José Frederico Álvares, President of the Integrated Development Institute of Minas Gerais ("INDI"), and Ricardo Murari Bandeira, Regulatory Manager of Amazon Mining.
The State, through INDI, shall provide support and assistance to Amazon during the implementation and operation phases of the project, particularly with regard to assisting with financing requirements and the expedition of permits and licenses. The terms of the special tax treatment (see Amazon release dated December 22, 2010), including the suspension of ICMS taxes on purchases destined for the construction of the Cerrado Verde Project are also outlined in the Memorandum.
The consolidation of the chemical industry sector is of great importance for the development of productive activities that add value and technology to the State, as evidenced by its commitment to Amazon. The Memorandum confirms that Cerrado Verde is within the parameters of the State's primary development goals, namely; increasing employment and reducing regional and social inequalities, and seeking to form strategic partnerships with the private sector aiming at the industrial and commercial development, internalization of industry and environmentally integrated policy. In respect to social development and to the economy of the State of Minas Gerais, the benefits granted to Amazon provide an increase in direct and indirect employment opportunities as well as in revenue.
Commenting, Cristiano Veloso, President and CEO said, "The exact terms and means of the State financial involvement at Cerrado Verde will be determined as we move forward with the project. This Memorandum represents a unique acknowledgement by the government of Minas Gerais of the incredible benefit domestic potash production will bring to the agricultural sector in Brazil. We gladly welcome the participation of the State in building our innovative potash operation."
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