Brazil Potash Signs Memorandum of Understanding for ~$200m Power Line Construction and $20m Investment With Fictor Energia
Rhea-AI Summary
Brazil Potash (NYSE-American: GRO) has signed a significant MOU with Fictor Energia for two major agreements: the construction of a ~102-mile power transmission line and a strategic equity investment. Under the agreement, Fictor Energia will fund the ~$200 million power line construction cost for the Autazes Project, removing this expense from Brazil Potash's construction budget.
The power line will supply 300MW per year of ~80% renewable sourced electricity, with ownership transferring to Brazil Potash after 25 years. Additionally, Fictor Energia plans to invest $20 million in equity through two tranches: $2 million upon signing the definitive agreement and $18 million upon receiving the power line installation license.
The infrastructure is expected to be operational by July 2029, aligning with the Autazes Project's production timeline.
Positive
- Removal of ~$200 million power line construction cost from Brazil Potash's budget
- Strategic $20 million equity investment from Fictor Energia
- Secured long-term power supply with 80% renewable energy source
- Infrastructure timeline aligns with project production schedule
- Power line ownership transfers to Brazil Potash after 25 years
Negative
- MOU is non-binding with no guarantee of definitive agreement
- Long construction timeline with completion not expected until July 2029
News Market Reaction
On the day this news was published, GRO gained 32.41%, reflecting a significant positive market reaction. Argus tracked a peak move of +3.8% during that session. Argus tracked a trough of -17.5% from its starting point during tracking. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $20M to the company's valuation, bringing the market cap to $82M at that time. Trading volume was exceptionally heavy at 54.6x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
- 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
MANAUS, Brazil, July 14, 2025 (GLOBE NEWSWIRE) -- 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 ~
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 ~
Fictor Energia assumes full responsibility for the ~
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.
About Brazil Potash
Brazil Potash (NYSE-American: GRO) (www.brazilpotash.com) is developing the Autazes Project to supply sustainable fertilizers to one of the world’s largest agricultural exporters. Brazil is critical for global food security as the country has amongst the highest amounts of fresh water, arable land, and an ideal climate for year-round crop growth, but it is vulnerable as it imported over
Cautionary Note Regarding Forward-Looking Statements
All statements, other than statements of historical fact, contained in this press release constitute "forward-looking statements" and are based on the reasonable expectations, estimates and projections of the Company as of the date of this press release. The words "plans," "expects," or "does not expect," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "does not anticipate," or "believes," or variations of such words and phrases or statements that certain actions, events or results "may," "could," "would," "might," or "will be taken," "occur" or "be achieved" and similar expressions identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding the MOU; advancement of the Autazes Project including specifically the powerline construction; the impact of the potential transaction with FICTOR and the benefits and structure of such transaction; and the status of the Company's project. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company disclaims any intention or obligation to update or revise any forward-looking statements, except to the extent required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.
Contact:
Brazil Potash Investor Relations
FAQ
What is the value of the power line construction agreement between Brazil Potash and Fictor Energia?
How much equity investment is Fictor Energia making in Brazil Potash (GRO)?
When will the Brazil Potash (GRO) power transmission infrastructure be completed?
What is the power capacity and source for Brazil Potash's Autazes Project?
Who will own the power transmission infrastructure for Brazil Potash's project?
