Verde AgriTech Reports Broad Magnet and Heavy Rare Earth Intersections From Surface at Minas Americas

Verde Agritech Ltd (TSX: NPK) released an exploration update on 6 October 2026 regarding its Minas Americas clay-hosted rare earth project in Minas Gerais, Brazil, operated through subsidiary Magnes Rare Earths. The company reported selected intervals from 50 additional reverse-circulation (RC) holes and a cumulative auger dataset, while confirming that SGS bench-scale metallurgical testing is underway with no results yet disclosed.

Key reported intervals, with MREO representing magnet rare earth oxides and TREO representing total rare earth oxides (both in ppm), include:

• MAV_RC_0063: 0–30 m (30 m) at 1,853 ppm MREO, 1,792 ppm NdPr, 60 ppm DyTb, 270 ppm HREO, 7,787 ppm TREO.
• MAV_RC_0001: 0–53 m (53 m) at 1,242 ppm MREO and 5,363 ppm TREO; including 23–53 m (30 m) at 1,950 ppm MREO / 8,201 ppm TREO; including 34–44 m (10 m) at 2,358 ppm MREO / 9,721 ppm TREO.
• MAV_RC_0054: 0–27 m (27 m) at 1,439 ppm MREO / 5,889 ppm TREO; selected 9–14 m (5 m) at 3,310 ppm MREO / 10,719 ppm TREO.
• MAV_RC_0036: 0–12 m (12 m) at 1,566 ppm MREO / 6,859 ppm TREO.
• MAV_RC_0070: 29–34 m (5 m) at 1,631 ppm MREO / 6,949 ppm TREO.
• Auger from surface: MAV_AD_0691 8 m at 2,194 ppm MREO / 8,780 ppm TREO; MAV_AD_0639 11 m at 2,179 ppm MREO / 8,079 ppm TREO; MAV_AD_0884 6 m at 2,075 ppm MREO; MAV_AD_0839 6 m at 1,946 ppm MREO; MAV_AD_0868 11 m at 1,799 ppm MREO; MAV_AD_0512 9 m at 1,320 ppm MREO.

The reporting scope encompasses 50 additional RC holes, comprising 39 complete holes with 1,123 assayed metres and 11 partial holes with 144 metres of available intervals, alongside 822 cumulative auger profiles. The combined assay compilation covers 879 holes and 7,468.8 assayed metres against a drilling-record population of 1,191 holes and 12,640.6 recorded metres.

The release noted that RC and auger sampling used nominal one-metre intervals and that all holes are vertical with a dip of −90°. True widths and continuity have not been established, no grade cutoff is applied to full-hole composites, and reported grades are head grades rather than recovered grades. Short intervals are situated within longer intervals and are not additive. A companion drill-hole and assay annex dated 3 October 2026 was referenced but not appended. SGS bench-scale metallurgy tested seven samples from four auger holes plus one duplicate, with no numerical results disclosed.

Verde Agritech Ltd (NPK) is a small-cap fertilizer producer that is currently loss-making and leveraged, while also holding a rare earth element (REE) system discovered through exploration. The REE asset is a pre-resource exploration option carried within an equity that the market is currently valuing largely on its fertilizer distress. The company has a market capitalization of approximately C$39.5 million on roughly 56.4 million shares.

The best previously reported result on this target is the 8 September 2026 batch, which included MAV_AD_0375 at 15 m from surface with 1.15% TREO and 2,830 ppm MREO, and first RC hole MAV_RC_0012 at 29 m with 0.58% TREO and 1,346 ppm MREO. This anchor is not embedded in the current valuation; the stock was C$0.86 on 8 September 2026 and drifted to C$0.70 by 5 October 2026, sitting roughly 68% below its 52-week high of approximately C$2.20 in October 2025. The market is pricing essentially no incremental REE progress.

This release’s best full-hole grades are 0.78% TREO and 1,853 ppm MREO, as well as 0.54% TREO and 1,242 ppm MREO over 53 m. These results are somewhat below the anchor on grade but broader on width, and their MREO-metres (RC0001 65,826 ppm·m) exceed the anchor’s (MAV_AD_0375 42,450 ppm·m). Decomposed into grade versus length, the grade is slightly down while length is up, resulting in net substance that is roughly even. This represents a confirmation-and-extension rather than a step change or a degradation.

The release reinforces scale and confirms that a second, deeper drilling method works, indicating the system is bigger vertically than previously shown. It does not raise the grade bar, add a new zone, advance metallurgy, or move toward the maiden resource estimate. For a pre-resource explorer, the addition of a depth dimension is a modest positive; however, with the pipeline now consisting of several consecutive "broad intersections" releases of similar grade, and with the true catalyst (SGS recovery) explicitly still pending, the market is unlikely to read this as new information about scale, grade, or odds.

Verde Agritech Ltd. (TSX: NPK; OTCQX: VNPKF) is a Brazilian agricultural-inputs company producing specialty potash fertilizer from its São Gotardo, Minas Gerais operations. The company operates a vertically integrated platform that includes owned mineral resources, two plants with a total installed capacity of 3.0 Mtpa, in-house labs, and agronomy services.

Financially, the company has reported losses across recent periods. Q2 2026 revenue was C$3.4M, down from C$4.8M, with a net loss of C$3.6M and EBITDA before non-cash items of −C$1.2M. In Q1 2026, revenue stood at C$1.7M with a net loss of C$3.7M. For the full year 2025, revenue was C$16.6M and the net loss was C$11.7M. Total debt stands at approximately C$52.2M at an average interest rate of 16–17%. Working capital remains thin, recorded at C$4.3M in Q1 and C$1.7M in Q2. The company has suspended scheduled debt-service payments while negotiating revised terms, creating a live solvency and liquidity overhang.

The company’s rare earths asset is the Minas Americas Global Alliance project, held through the wholly owned Magnes Rare Earths subsidiary, which was formed in May 2026. This exploration-stage, clay-hosted ionic-adsorption rare earth element discovery spans a large footprint in the Alto Paranaíba region. Magnes is intended to pursue a separate U.S. listing, and this release advances that asset's exploration database only.