Brazil Potash eyes fundraising spherical after U.S. elections

Brazil Potash eyes fundraising spherical after U.S. elections

By Shariq Khan Oct 8 (Reuters) - Canada-based Brazil Potash

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By Shariq Khan

Oct 8 (Reuters)Canada-based Brazil Potash Corp has filed preliminary paperwork with U.S. regulators forward of a $50 million fund-raising spherical round November that might worth the fertilizer enterprise at about $520 million, Chief Govt Matt Simpson mentioned on Monday.

Simpson mentioned the corporate, a part of a push to launch large-scale manufacturing that would make Brazil a significant supply of the fertilizer commodity, was additionally in talks with a number of massive world producers on a possible takeover or funding.

If none of these talks come to fruition, he informed Reuters that the corporate, which has already raised $198 million in capital, will proceed with a $four per share provide that may take it by means of to a public itemizing in 12 to 18 months.

He declined to say which firms he was in talks with.

Potash is a crucial commodity in Brazil, one of many world’s greatest agricultural producers, and Brazil Potash’s Autazes mine is one in every of a number of potential initiatives in a 400-km belt south of the Amazon which the federal government hopes will finish its virtually full reliance on imports of the fabric.

The corporate, which has pushed its estimate for coming on-line again to mid-2025 because of delays in consultations with indigenous teams, initiatives preliminary output from Autazes at round 2.four million tonnes each year, enough to provide about 20% of Brazil’s Potash wants.

Output from the ability, which the corporate estimates will ultimately price $2.1 billion to deliver on-line with a mine lifetime of 34 years, will ultimately be doubled.

As soon as in manufacturing, Brazil Potash is concentrating on annual earnings earlier than curiosity, taxes, depreciation, and amortization of $718 million, which may end in a market valuation of as a lot as $7.2 billion in line with its projections.

(Reporting by Shariq Khan in Bengaluru; enhancing by Patrick Graham and Ramakrishnan M.)

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