ATOME (AIM: ATOM), the leading developer of international green fertiliser projects, is pleased to announce that the formal Free Trade Zone (“FTZ”) contract for the Company’s flagship 145MW Villeta project in Paraguay (“Villeta” or the “Project”) has been executed and now completed. This follows the announcement on 14 November 2023 of the signing of the Presidential Decree authorising and directing the grant of FTZ status. The status accorded to the Villeta Project remains only the seventh FTZ to be granted by Paraguay.

The FTZ gives the Project tax free status, meaning ATOME will benefit from exemptions on municipal, VAT and corporate taxes, and provides material benefits to the economic efficiency of Villeta. Alongside the recent signing of Heads of Terms with Yara International ASA for the long-term offtake of Villeta’s entire production by the international company, the FTZ further underlines the robust commercial proposition of the project.

As previously announced, the principal terms of the definitive completed FTZ contract include:

• 30-year term
• Provides transparent legal and fiscal certainty through the life of the project
• Deemed commenced on 1 August 2024
• Exemption from VAT on:
  • Sales of goods and services from Paraguay to the FTZ
  • Import of equipment and services (customs tax)
  • Services provided to the FTZ
• 0.5% Free Trade Zone tax on revenue from export sales to third countries, no CIT
• 3% effective corporate income tax (“CIT”) on profit derived from sales to Paraguay
• Exemption from CIT and/or withholding taxes including on:
  • Remittance of profits or dividends by FTZ users to third countries
  • All payments of fees, commissions, interest, and all other remuneration on all services, including financing, provided from third party countries to FTZ Users
  • Exemptions from local and municipal taxes and charges

James Spalding, President of ATOME Paraguay, commented:

“The completion of the Free Trade Zone contract is another milestone achievement, coming quickly after the signing of the Heads of Terms with Yara for offtake of our future Villeta production.

“We are deeply appreciative of the ongoing support for our flagship project by the Government and Regulatory authorities of Paraguay and would like to reiterate our congratulations to the Country for achieving investment grade status from Moody’s Ratings. We look forward to continuing to deliver this project for the Company and Paraguay.”