Toronto-based Verde Potash (TSX:T.NPK
, Stock Forum
) announced shortly before trading close Tuesday that it has been selected for special financing by the Brazilian government financing program Inova Agro (translated: Innovative Agri).
The financing will be applied to the Cerrado Verde potash project.
Stockhouse understands the company expects up to 90% financing of a thermopotash plant out of the program.
Cristiano Veloso, Verde’s Pesident and CEO, said in a news release, "Inova Agro's decision is immensely important not only for Brazil but for the world's population [which is] ever so reliant on Brazil's food production.”
Veloso called the program “groundbreaking” and said, with it, “Brazil takes a step towards reducing its economy's debilitating dependency on imported potash."
Under the program, companies are provided with financial support for innovative agricultural projects. That support takes the form of subsidized interest, equity investment, and non-reimbursable grants.
Inova Agro is part of a larger scheme that funds numerous sectors with a total budget of around $15 billion per year.