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Brazil Potash Corp (NYSE: GRO) has secured further funding in support of its US$2.5 billion Autozales Potash Project in Brazil. The company on Tuesday announced that it has entered into a definitive agreement for an equity line of credit.
The line of credit is to come from Alumni Capital LP, an institutional investor focusing on the small-cap sector. The arrangement is expected to provide Brazil Potash with a flexible source of funding as it progresses the Autozales project.
Under the terms of the arrangement, Alumni has agreed to the obligation to purchase up to $75 million in common shares over a 24 month period at prevailing market prices. Brazil Potash will control the timing of the sales at its own discretion. The sales are to be exempt from registration requirements, while Alumni is required to register the resale of the common shares purchased under the arrangement.
“This agreement with Alumni Capital provides an important financing tool as we advance our Autazes Project. The facility’s flexibility enables efficient capital access while we progress early works construction activities. With permits secured and strong offtake agreements in place, we’re well-positioned to develop this strategically important project for global food security,” commented Matt Simpson, CEO of Brazil Potash.
Brazil Potash’s Autazes potash project, once operational, is expected to have a 23 year mine life, producing 2.4 million short tons of potash a year at one of the lowest costs in the country. The final product is expected to be sold locally, with Brazil accounting for 22% of global demand for potash, while producing less than 1% of the global supply. The project is expected to produce run-rate EBITDA of US$1 billion a year based on current estimates.
Brazil Potash last traded at $2.40 on the NYSE.
FULL DISCLOSURE: Pursuant to an agreement between 2686362 Ontario Corp (“268”) and Brazil Potash Corp, 268 has been paid $50,000 + GST by Brazil Potash for a period from January 10, 2025 to April 10, 2025. We may buy or sell additional shares of Brazil Potash Corp in the open market at any time, including before, during or after the agreement, to provide public dissemination of favorable information about Brazil Potash Corp.
