Minas Gerais State Government Commits to Financially Support Amazon's Cerrado Verde Project
TORONTO, ONTARIO -- (Marketwire) -- 04/07/11 -- 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 Mauricio Colombini Lima, Secretary of the State Treasury Department, Jose Frederico Alvares, 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.'
Other Matters
Amazon will be hosting its Annual General Meeting on Tuesday, April 12 at 10:00am EST, at the offices of Fasken Martineau LLP at 333 Bay Street, Suite 2400, Toronto, ON M5H 2T6. All shareholders are invited to attend.
Subsequent to approval from the TSX Venture Exchange, Amazon has increased the exercise price to $0.45 on stock options previously granted between November 2008 to June 2009 to five consultants who were each granted 50,000 options to purchase ordinary shares of Amazon. Four of the consultants received stock option grants exercisable at $0.35 while one of the consultants received a stock option grant exercisable at $0.30. Amazon has increased the exercise price to be above the par value of the ordinary shares.
About Amazon
Amazon Mining is a mineral exploration and development company founded by Brazilians in 2005. The company is focused on the development of the Cerrado Verde project. Cerrado Verde is a source of a potash rich rock from which Amazon plans to produce a slow-release, non-chloride, multi-nutrient, fertilizer product. Amazon Mining is a UK public company with shares listed on the Toronto Stock Exchange since November 2007.
On behalf of the Board of Directors of Amazon Mining Holding Plc
Jed Richardson, Vice President of Corporate Development
Cautionary Language and Forward Looking Statements
THIS PRESS RELEASE CONTAINS CERTAIN 'FORWARD LOOKING STATEMENTS', WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS 'PLANS', 'EXPECTS', OR 'DOES NOT EXPECT' OR 'IS EXPECTED', 'ANTICIPATES' OR 'DOES NOT ANTICIPATE', OR 'BELIEVES', 'INTENDS', 'FORECASTS', 'BUDGET', 'SCHEDULED', 'ESTIMATES' OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS 'MAY', 'COULD', 'WOULD', 'MIGHT', OR 'WILL BE TAKEN', 'OCCUR' OR 'BE ACHIEVED'. FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.
Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Amazon's website (www.amazonplc.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Amazon Mining Holding Plc
Cristiano Veloso
President & Chief Executive Officer
44 (0) 20 8133 7607
44(0)20 7405 7773 (FAX)
cv@amazonplc.com
Amazon Mining Holding Plc
Jed Richardson
VP Corporate Development
1(416)866-2966
1(416)866-8829 (FAX)
jed@amazonplc.com
www.amazonplc.com