Major Order made by Repeat Customer, 15 Times Larger Than first Purchase
BELO HORIZONTE, Brazil, June 25, 2018 (GLOBE NEWSWIRE) -- Verde AgriTech Plc (TSX:NPK) (OTCQB:AMHPF) ("Verde” or the “Company”) is pleased to announce that a leading Brazilian agricultural producer (the “Buyer”) has purchased 3,250 tons of Super Greensand®, following a smaller purchase of 198 tons in 2017. In this sale, the price per ton of Super Greensand® was higher than the reference price adopted in the Company’s pre-feasibility study, announced in November 27, 2017; this reflects the increase in potash prices in global markets.
In 2014, Verde started its relationship with the Buyer with an aim to supply the potash needs across its plantations. The Buyer was kept abreast of the Company’s many field tests with Super Greensand®.
Commenting, Verde’s President & CEO Cristiano Veloso analyzed, “It is gratifying to see a return costumer placing any order. It is even more pleasing to see a significantly enlarged second order. This growth in demand for Super Greensand® is what we expect from the market, both from famers that run a trial over a harvest period and from farmers that learn about prior success from neighboring farms”.
The Company’s pre-feasibility study shows a NPV of US$1.98 Billion and IRR of 290%. The study considers an exponential growth in production: Phase 1 production capacity will be 0.6 Mtpy; Phase 2 production capacity will be 5 Mtpy; Phase 3 production capacity will be 25 Mtpy. Verde is currently building its own production plant, to enter into operations in the second half of 2018. It will have capacity for approximately 0.3 Mtpy (45 tons per hour) at a cost of around US$500,000. |
