- Construction of ~102 mile long power line is the only major offsite infrastructure required by the Autazes potash project
- Fictor Energia will fund ~$200M power line construction cost removing this from the Autazes Potash project total construction cost
- Fictor Energia also plans to invest $20 million of equity in two tranches
Brazil Potash Corp. (“Brazil Potash” or the “Company”) (NYSE-American: GRO), a mineral exploration and development company with a critical mineral potash mining project, the Autazes Project (the “Project”), today announced the signing of a non-binding Memorandum of Understanding (MOU) with Fictor & WTT S.A. (“Fictor Energia”), part of the infrastructure division of Fictor Group, a leading Brazilian private equity firm. The MOU outlines terms for Fictor Energia to fund ~$200 million in power transmission construction costs for the Autazes Project while securing long-term energy supply and a $20 million strategic equity investment.
Partnership Highlights
Under the terms of the MOU, Fictor Energia would undertake complete development, permitting, construction, and operation of the power transmission infrastructure to supply 300MW per year of ~80% renewable sourced Brazil grid electricity for the Autazes Project through a Build, Own, Transfer model. After 25 years of operation, ownership of the electrical power line and associated substation to be transferred to Brazil Potash.
Fictor Energia assumes full responsibility for the ~$200 million power transmission capital expenditure, removing this major infrastructure investment from Brazil Potash’s construction budget. Additionally, Fictor Energia plans to invest $20 million equity into Brazil Potash in two tranches: 1) $2 million upon signing of the definitive partnership agreement; and 2) $18 million upon receipt of the power line installation license.
Next Steps
The parties will work toward execution of definitive agreements, with Fictor Energia immediately beginning preliminary engineering and regulatory processes. There can be no assurance that the definitive documentation related to the transactions set forth in the MOU will be agreed upon or signed, or that, if signed, such transactions will be consummated, or of the final terms and conditions related to such transactions. The power transmission infrastructure would be expected to be completed and operational by July 2029, aligning with the Autazes Project’s planned production timeline.
Corporate Update
The Company also announces that Raphael Bloise has been appointed as the Interim President of Potassio do Brasil Ltda, the Company’s wholly owned Brazilian subsidiary.
About FICTOR GROUP
Fictor is a holding company with 18 years of private equity experience. Operating in strategic sectors for Brazil, the company has three main divisions: food industry, financial services, and infrastructure. Headquartered in the Berrini area of São Paulo, Fictor’s purpose is to generate sustainable value for businesses shaping Brazil’s vital sectors.
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