Brazil Potash appoints BTIG to seek project-level equity for Autazes construction
Brazil Potash says BTIG will seek strategic partners for equity investment at the Autazes Project level, while the company continues discussions in Brazil, China and other regions.
Brazil Potash Corp. has appointed BTIG, LLC to seek equity investment at the project level for construction of its Autazes potash project in Brazil. The mandate is aimed at bringing in strategic partners while placing a substantial share of the construction financing at the asset level rather than directly at the corporate level.
The financing has not been completed. Brazil Potash said BTIG will attempt to identify and engage potential investors, but the announcement did not disclose a financing amount or completion date.
BTIG’s role includes pursuing potential strategic investors in international markets. Brazil Potash said this work will complement its continuing discussions with selected parties in Brazil, China and other regions where it already has relationships.
The company said the proposed structure is intended to provide construction funding through the entity holding the Autazes asset, with the aim of reducing direct dilution for existing shareholders. Brazil Potash also cautioned that the likelihood of success for the proposed financing structure and any limitation on future dilution are forward-looking matters.
#Other capital-structure options remain under review
Brazil Potash said it is examining additional ways to organise its capital structure, including carve-outs involving individual project components. The company pointed to its recent Fictor Energia partnership for power transmission infrastructure as an example, without providing further terms for that arrangement.
Brazil Potash is listed on NYSE American under the ticker GRO. The company is developing the Autazes Project to supply potash for Brazil’s agricultural sector. It said Brazil imported over 95% of its potash fertilizer in 2021 and described the country as having an undeveloped potash basin.
Brazil Potash identified risks involving capital-market conditions and its ability to raise additional funds for construction. Other uncertainties include changes in operations, estimates, industry conditions, reliance on contractors and consultants, and the commercial success of its development activities.
The company also cited fluctuations in potash supply and demand, competitive pressures, the timing and amount of capital expenditures, currency and exchange-rate movements, unexpected geological or environmental conditions, and changes in legislation and regulation.
Additional risks include political or economic developments in relevant jurisdictions, obtaining required licences and permits, securing project financing, and other operational factors. Brazil Potash said forward-looking statements are not guarantees of future performance and that actual results may differ materially from those statements.
Brazil Potash announced that it has appointed BTIG, LLC as its lead financial advisor to secure an equity investment at the project level to fund construction of the Autazes Project. Under the mandate, BTIG will attempt to identify and engage new strategic partners to invest directly at the project entity level.
The source describes an announced mandate and an attempt by BTIG to identify and engage investors. It does not state that the financing has been completed, nor does it provide a financing amount or completion date.
The company says the proposed structure is intended to secure substantial construction funding at the project entity level with less direct dilution on existing shareholders. The source also identifies the likelihood of success of the proposed financing structure and the limitation of future dilution as forward-looking matters, and states that actual results may differ materially.
The company says BTIG’s mandate covers international markets. It also says it is continuing discussions with select strategic parties in Brazil, China and select other regions where it has existing relationships. The source does not identify any new strategic partner secured under this mandate.
The company says it continues to explore additional pathways to optimise its capital structure, including similar carve-out opportunities for discrete project components. It refers to the recent Fictor Energia partnership for power transmission infrastructure as an example, but the source does not provide further terms of that partnership.
The source identifies uncertainties related to the capital markets and the ability to raise additional funds for project construction, as well as the ability to secure project financing. It also cites changes in operations, uncertainties concerning estimates, industry-related risks, reliance on contractors and consultants, fluctuations in potash supply and demand, changes in competitive pressures, timing and amount of capital expenditures, currency and exchange rate fluctuations, unexpected geological or environmental conditions, government legislation and regulations, political or economic developments, and success in obtaining required licences and permits.
The source identifies Brazil Potash as listed on NYSE American: GRO and also describes it as Brazil Potash (NYSE-American: GRO).