Feb 19 2011
Rio Verde Minerals Corp., a privately held company, has announced the commencement of drilling at its Sergipe Potash Project, in Sergipe state, north-eastern Brazil.
The Sergipe Potash Project is located in the Sergipe Basin, an area with approximately 30 years of potash exploration and development history (the properties were discovered by Petromisa, a subsidiary of Petrobras, during early oil and gas exploration in the area). This basin is home to Brazil's only producing potash mine, Taquari-Vassouras, which has been in operation since the 1970's, and is operated today by Vale S.A. With this drill program, Rio Verde is targeting similar sylvinite horizons as at Taquari-Vassouras (also identified by Petromisa), as well as significant potential caranallite horizons.
With the assistance of Ercosplan, an international geological consulting group with expertise in potash, Rio Verde has identified 7 potash drill-ready targets in the Sergipe Potash Project. These targets were selected following an extensive remodelling of the geology of the Sergipe basin, based on approximately 234 line kilometres of 2D seismic data, and the acquisition of geological data from 286 historical oil wells in the area. The first target to be tested is the Sergi Prospect located south of Taquari-Vassouras mine, with an initial program of 4,050 metres split in 3 holes of 1,350 metres each. Each hole should take approximately 90 days to be completed and analysed. In addition, 2 seismic lines totalling 15.5 km have been planned to start in the second quarter of 2011.
Rio Verde is also pleased to announce that it has now completed the previously announced private placement totalling 20,000,000 common shares at a price of $0.50 per common share for total proceeds of $10,000,000. Subsequently, Rio Verde will have in total 57,816,177 common shares issued and outstanding. The proceeds of this financing will be used by Rio Verde to execute the exploration program at the Sergipe Potash Project, including drilling and geophysics, as well as exploration on the priority phosphate targets, while actively assessing partnerships and acquisition opportunities to advance and add to its portfolio of projects. Rio Verde intends to list its common shares in a recognized stock exchange through a going-public transaction aimed to be completed in the spring of 2011.
Source: Rio Verde Minerals Corp.