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Brazil Potash Announces Mine Shaft FEED Award for Autazes Project

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Announcement Summary

Brazil Potash Corp. (NYSE-American: GRO) announced a Front-End Engineering Design (FEED) contract for mine shafts and underground development at the Autazes Project in Amazonas State, Brazil.

  • WSP UK Ltd. received the second FEED contract for mine shafts and underground development, with Redpath Deilmann as subconsultants for mine shafts.
  • Only the first phase, Early Works, has been awarded; it spans 12 months and has a value of USD 4.3 million.
  • The estimated total contract value is USD 26 million, subject to authorization of subsequent phases.
  • The company says completing FEED studies is critical to construction debt financing discussions underway with Development Finance Institutions and Export Credit Agencies.
  • The company says FEED converts conceptual and pre-feasibility premises into detailed engineering documentation intended to support lender due diligence and establish foundations for full FEED execution and long-lead procurement.
  • The company says the two shafts form the critical path and define the construction schedule; subsequent infrastructure depends on their timely and safe completion.

The earlier Surface Facilities and Infrastructure FEED was awarded to Wood and Promon Engenharia. WSP Brasil supports Brazilian regulatory compliance under a standalone agreement with WSP UK Ltd.

Investor FAQs

Brazil Potash Corp. has announced the award of a second Front-End Engineering Design (FEED) contract for mine shafts and underground development at the Autazes Project to WSP UK Ltd., with Redpath Deilmann as subconsultants for the mine shafts scope. Brazil Potash is identified in the source as (NYSE-American: GRO).
The work covers mine shafts and underground development, including geotechnical investigation, freeze modelling, basis of design development, and regulatory and engineering foundations required to advance to full FEED execution. WSP UK Ltd. is described as contributing geomechanical analysis, freeze modelling, shaft liner design and structural assessments, while WSP Brasil supports compliance with Brazilian regulatory frameworks.
The estimated total value of the FEED contract is USD 26 million, subject to authorisation of subsequent phases. At this time, only the first phase, Early Works, has been awarded. That phase spans 12 months and has a value of USD 4.3 million. The source does not state that the subsequent phases have been awarded.
The Surface Facilities and Infrastructure FEED was previously awarded to Wood and Promon Engenharia. Brazil Potash states that the new award completes engineering design coverage across the full Autazes Project scope, including both underground and surface works.
The source states that completion of the FEED studies is a critical milestone for securing construction debt financing. Dialogue with Development Finance Institutions (DFIs) and Export Credit Agencies (ECAs) is currently ongoing. The source describes the FEED documentation as intended to support lender due diligence, but it does not state that construction debt financing has been secured.
The source states that shaft sinking constitutes the critical path for the Autazes Project and that the two shafts define the entire construction schedule. It also states that subsequent infrastructure, including the processing plant, tailings, logistics and underground development, depends on the timely and safe completion of the shafts. Redpath is described as having participated in and delivered shaft sinking works on more than 500 shafts worldwide.
The source says that forward-looking statements concerning the Autazes Project, financing discussions, the FEED study, expected production volumes, the capabilities of Redpath and WSP, greenhouse gas emissions reductions, and government and environmental regulation are subject to risks and uncertainties. It cautions readers not to place undue reliance on those statements and says they speak only as of the date of the release. The source does not provide further detail on the specific risk factors in this announcement.

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