Turnkey agreement for 45 tons per hour Super Greensand® production facility signed by Verde
TORONTO, March 07, 2018 (GLOBE NEWSWIRE) -- Verde AgriTech Plc (TSX:NPK) (OTCQB:AMHPF) ("Verde” or the “Company”) is pleased to announce that it has signed a turnkey agreement for the construction of a processing plant in the municipality of São Gotardo, in the state of Minas Gerais. The expected production is 45 tons per hour. The total cost of the production facility is expected to be US$ 500,000.
“The success Verde is enjoying in the marketplace has moved the Company to take the fastest path to build its own production facility while minimizing capital costs and allowing for efficient expansion. With its own plant, in addition to increasing our production capacity, margins are expected to be increased by lowering current operation costs”, commented President & CEO, Cristiano Veloso.
The turnkey agreement will be performed by a leading engineering and equipment manufacturer. The plant is expected to start production in the second half of 2018.
In 2017, Verde started its mining operations using contractors and a third party processing plant. All the production for 2017 was successfully sold. The production was interrupted late last year because of the rainy season but is expected to resume later this month. Verde will continue to run the third party processing plant even after its new 45 tons per hour plant is commissioned, thereby ensuring maximum output.
The turnkey agreement is valued at US$ 300,000. It includes: feed silo, hammer mill, separators and control valves, dust control and conveyors belts. In addition, the company will spend approximately US$ 200,000 on site preparation, building storage and supporting facilities. Verde is evaluating debt finance for the construction of the plant, even though financing is not a pre-condition for the development to proceed.
The plant’s engineering design and site layout were conceived to allow future expansions. The company has already filed a permit application to allow production on this site to reach 600,000 tonnes per annum.
In November 27, 20171 the Company announced the results of its pre-feasibility study (PFS). The study shows a NPV of US$ 1.98 Billion and IRR of 290%. Verde’s new production plant is expected to deliver greater volume and profits than the current third party contractor. The Company aims to use the profits of its production facility to reach its PFS phase 1 production capacity, seeing that current plant is modular and will accommodate expansions.
“Since its inception, all the way through Verde’s 10 year history as a public company that went into mineral production, the Company has only issued some 40 million shares having meticulously invested over US$ 50 million. We will continue to guide Verde with same principles and financial discipline of calculated investment and minimal shareholder dilution. Verde will grow organically to maximize shareholder value”, commented President & CEO, Cristiano Veloso.
Concluding, “this is a historic milestone for Verde, we are pleased to soon have our own production facility, which is a big step towards achieving the potential outlined in our PFS”.
A mine production decision that is made without a definitive feasibility study carries additional potential risks that include, but are not limited to mine design and mining schedules, production flow sheets and process plant designs, economic analysis and internal studies to ensure satisfactory operational conditions and decisions regarding future targeted production. |
