Brazil Potash Signs Memorandum of Understanding for ~$200m Power Line Construction and $20m Investment With Fictor Energia
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.
Brazil Potash (NYSE-American: GRO) ha firmato un importante Memorandum of Understanding con Fictor Energia per due accordi principali: la costruzione di una linea di trasmissione elettrica di circa 102 miglia e un investimento azionario strategico. Secondo l'accordo, Fictor Energia finanzierà il costo di costruzione della linea elettrica di circa 200 milioni di dollari per il Progetto Autazes, eliminando questa spesa dal budget di costruzione di Brazil Potash.
La linea elettrica fornirà 300MW annui di energia elettrica proveniente per circa l'80% da fonti rinnovabili, con la proprietà che passerà a Brazil Potash dopo 25 anni. Inoltre, Fictor Energia prevede di investire 20 milioni di dollari in capitale azionario attraverso due tranche: 2 milioni di dollari al momento della firma dell'accordo definitivo e 18 milioni di dollari al rilascio della licenza per l'installazione della linea elettrica.
Si prevede che l'infrastruttura sarà operativa entro luglio 2029, in linea con il calendario di produzione del Progetto Autazes.
Brazil Potash (NYSE-American: GRO) ha firmado un importante Memorando de Entendimiento con Fictor Energia para dos acuerdos principales: la construcción de una línea de transmisión eléctrica de aproximadamente 102 millas y una inversión estratégica en capital. Según el acuerdo, Fictor Energia financiará el costo de construcción de la línea eléctrica de aproximadamente 200 millones de dólares para el Proyecto Autazes, eliminando este gasto del presupuesto de construcción de Brazil Potash.
La línea eléctrica suministrará 300MW por año de electricidad con aproximadamente un 80% de fuentes renovables, y la propiedad se transferirá a Brazil Potash después de 25 años. Además, Fictor Energia planea invertir 20 millones de dólares en capital mediante dos tramos: 2 millones al firmar el acuerdo definitivo y 18 millones al obtener la licencia para la instalación de la línea eléctrica.
Se espera que la infraestructura esté operativa para julio de 2029, en línea con el cronograma de producción del Proyecto Autazes.
Brazil Potash (NYSE-American: GRO)는 Fictor Energia와 약 102마일 길이의 전력 송전선 건설과 전략적 지분 투자라는 두 가지 주요 계약을 위한 중요한 양해각서(MOU)를 체결했습니다. 이 계약에 따라 Fictor Energia는 Autazes 프로젝트의 전력선 건설 비용 약 2억 달러를 부담하여 Brazil Potash의 건설 예산에서 이 비용을 제외하게 됩니다.
이 송전선은 연간 300MW의 약 80%가 재생 가능 에너지로 공급되며, 25년 후 소유권이 Brazil Potash로 이전됩니다. 또한 Fictor Energia는 확정 계약 서명 시 200만 달러, 전력선 설치 허가 취득 시 1800만 달러, 총 2000만 달러를 두 차례에 걸쳐 지분 투자할 계획입니다.
이 인프라는 Autazes 프로젝트의 생산 일정에 맞춰 2029년 7월까지 가동될 예정입니다.
Brazil Potash (NYSE-American : GRO) a signé un protocole d'accord important avec Fictor Energia pour deux accords majeurs : la construction d'une ligne de transmission électrique d'environ 102 miles et un investissement stratégique en capital. Selon cet accord, Fictor Energia financera le coût de construction de la ligne électrique d'environ 200 millions de dollars pour le projet Autazes, supprimant ainsi cette dépense du budget de construction de Brazil Potash.
La ligne électrique fournira 300 MW par an d'électricité dont environ 80 % proviendront de sources renouvelables, la propriété étant transférée à Brazil Potash après 25 ans. De plus, Fictor Energia prévoit d'investir 20 millions de dollars en actions en deux tranches : 2 millions à la signature de l'accord définitif et 18 millions à l'obtention de la licence d'installation de la ligne électrique.
Cette infrastructure devrait être opérationnelle d'ici juillet 2029, en phase avec le calendrier de production du projet Autazes.
Brazil Potash (NYSE-American: GRO) hat ein bedeutendes Memorandum of Understanding mit Fictor Energia für zwei Hauptvereinbarungen unterzeichnet: den Bau einer etwa 102 Meilen langen Stromübertragungsleitung und eine strategische Kapitalbeteiligung. Im Rahmen der Vereinbarung wird Fictor Energia die Baukosten von etwa 200 Millionen US-Dollar für die Stromleitung des Autazes-Projekts tragen, wodurch diese Ausgabe aus dem Bauetat von Brazil Potash entfällt.
Die Stromleitung wird jährlich 300MW liefern, davon etwa 80 % aus erneuerbaren Quellen, und das Eigentum geht nach 25 Jahren auf Brazil Potash über. Zudem plant Fictor Energia eine Kapitalbeteiligung von 20 Millionen US-Dollar in zwei Tranchen: 2 Millionen bei Unterzeichnung der endgültigen Vereinbarung und 18 Millionen bei Erhalt der Genehmigung für die Installation der Stromleitung.
Die Infrastruktur soll bis Juli 2029 betriebsbereit sein, im Einklang mit dem Produktionszeitplan des Autazes-Projekts.
- 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
- MOU is non-binding with no guarantee of definitive agreement
- Long construction timeline with completion not expected until July 2029
Insights
Brazil Potash secures $200M infrastructure funding and $20M investment, significantly reducing capital requirements for its Autazes Project.
Brazil Potash has signed a strategic MOU that addresses one of the most critical aspects of mining project development - infrastructure financing. The agreement with Fictor Energia effectively removes
The Build, Own, Transfer model is particularly advantageous for Brazil Potash. Under this arrangement, Fictor Energia assumes all development, permitting, construction, and operational responsibilities for the 102-mile power transmission infrastructure, while Brazil Potash secures its critical power needs of 300MW annually. After 25 years, the company gains ownership of these assets without the upfront capital burden.
The additional
The fact that the power transmission infrastructure represents the only major offsite infrastructure requirement for the project means this agreement addresses a crucial development bottleneck. The 2029 operational timeline aligns with the project's production schedule, suggesting careful integration of the infrastructure development with the broader project timeline.
This MOU represents a substantial operational advantage for Brazil Potash's Autazes Project. By securing power infrastructure - typically one of the most challenging aspects of remote mining operations - the company has addressed a crucial technical hurdle. The 300MW annual supply from Brazil's grid, with
The power infrastructure agreement is particularly valuable considering the project's location in Brazil, where regulatory complexities and construction challenges can create significant delays. Having a specialized partner like Fictor Energia handle the permitting and construction of this critical 102-mile power line removes a major execution risk from Brazil Potash's direct responsibility.
While the MOU is non-binding and definitive agreements remain to be finalized, the immediate commencement of preliminary engineering and regulatory processes by Fictor Energia signals confidence in the partnership's viability. The 2029 timeline for power infrastructure completion suggests a realistic assessment of the regulatory and construction timelines in Brazil's complex permitting environment.
For context, potash mining operations require significant electricity for processing, material handling, and mine ventilation systems. Having secured this essential input at a predetermined cost structure improves the overall economic predictability of the Autazes Project. Additionally, by removing
- 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?
