Brazil Potash Corp. (NYSE: GRO) experienced a significant uptick in share price during pre-market trading, with its stock rising 55.17% to $2.25. This rally follows the company’s announcement of a strategic collaboration through a non-binding Memorandum of Understanding (MOU) with Fictor & WTT S.A. (“Fictor Energia”), a division of the Brazilian private equity firm Fictor Group.
Powering the Autazes Project
The agreement paves the way for Fictor Energia to finance approximately $200 million in power transmission infrastructure for Brazil Potash’s Autazes Project. Under the MOU, Fictor Energia will undertake the full development, permitting, construction, and operation of transmission lines delivering 300MW annually—sourced from approximately 80% renewable Brazilian grid electricity.
This will be executed under a Build, Own, Transfer (BOT) model, with asset ownership transferring to Brazil Potash after 25 years of operation.
Equity Investment and Phased Commitments
In addition to infrastructure financing, Fictor Energia has committed to a $20 million equity investment in Brazil Potash. This will be disbursed in two tranches: $2 million upon signing the definitive partnership agreement and the remaining $18 million following receipt of the power line installation license.
This arrangement significantly reduces the capital burden on Brazil Potash’s construction budget, enabling better alignment with its long-term development objectives.
Future Steps and Executive Appointment
Both parties are now progressing toward the execution of definitive agreements. Fictor Energia will begin initial engineering and regulatory work immediately, although the MOU remains non-binding and subject to final documentation and approvals.
If formalized, the power infrastructure is expected to be operational by July 2029, coinciding with the anticipated production launch of the Autazes Project. In parallel, Brazil Potash announced the appointment of Raphael Bloise as Interim President of Potassio do Brasil Ltda, the firm’s wholly owned Brazilian subsidiary.
