Canada-based Brazil Potash has filed initial documents with US regulators ahead of a $50-million fund-raising round around November that would value the fertilizer venture at about $520 million, CEO Matt Simpson said on Monday.
Simpson said the company, part of a push to launch large-scale production that could make Brazil a major source of the fertilizer commodity, was also in talks with several large global producers on a potential takeover or investment.
If none of those talks come to fruition, he told Reuters that the company, which has already raised $198-million in capital, will proceed with a $4 per share offer that will take it through to a public listing in 12 to 18 months.
He declined to say which companies he was in talks with.
Potash is a vital commodity in Brazil, one of the world's biggest agricultural producers, and Brazil Potash's Autazes mine is one of several potential projects in a 400-km belt south of the Amazon which the government hopes will end its almost complete reliance on imports of the material.
The company, which has pushed its estimate for coming online back to mid-2025 thanks to delays in consultations with indigenous groups, projects initial output from Autazes at around 2.4-million tonnes per annum, sufficient to supply about 20% of Brazil's Potash needs.
Output from the facility, which the company estimates will eventually cost $2.1-billion to bring online with a mine life of 34 years, will eventually be doubled.
Once in production, Brazil Potash is targeting annual earnings before interest, taxes, depreciation, and amortization of $718-million, which could result in a market valuation of as much as $7.2-billion according to its projections.