Verde Potash (TSX:NPK) announced its new strategic plan to advance the Cerrado Verde Potash Project. Verde’s plan is based on the technical practicality of the project’s staged scale-up in an aim to reduce risk and generate increased cash flow from its Cerrado Verde project in Brazil.
According to the company’s press release:
The new strategy will comprise two phases. In Phase 1 the Company intends to build a plant (the ‘Flex Plant’) with a capacity of approximately 1,000 tonnes per day (“tpd”) for the production of ThermoPotash. The Flex Plant will also be operated to process KCl in order to further develop scale-up and commercialization of the process and with the intent of securing performance guarantees on a 12,000 tpd kiln for KCl production. Phase 2, developed in parallel with Phase 1, would focus on large scale KCl production. This two-phased strategy expects to reduce up front capex by initially establishing the less capital intensive ThermoPotash product.