Brazil Potash inks $200M MOU to power Autazes project

[Redator]

Brazil Potash (NYSE: GRO), a mineral exploration and development company announced Monday the signing of a non-binding Memorandum of Understanding (MOU) with the infrastructure division of Fictor Group, a leading Brazilian private equity firm, outlining terms for Fictor Energia to fund $200 million in power transmission construction costs for the Autazes potash project while securing long-term energy supply and a $20 million strategic equity investment. 

 
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. 

After facing headwinds due to some opposition by Indigenous groups, the state of Amazonas issued Brazil Potash last year the license to build the Autazes project, pegged to be the largest fertilizer mine in Latin America within the Amazon rainforest. 

Fictor Energia assumes full responsibility for the ~$200 million power transmission capital expenditure, removing this major infrastructure investment from Brazil potash’s construction budget. Fictor also plans to invest $20 million equity into Brazil Potash in two tranches: $2 million upon signing of the definitive partnership agreement; and $18 million upon receipt of the power line installation license. 

 
The parties will work toward execution of definitive agreements, with Fictor Energia immediately beginning preliminary engineering and regulatory processes.  

The power transmission infrastructure would be expected to be completed and operational by July 2029, aligning with the Autazes Project’s planned production timeline.  

The proposed mine and processing facilities in Autazes, 75 miles (120 kms) southeast of the Amazonas state capital Manaus, would require about three years to build, the company has said.