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African Potash Ltd. (AFPO)
African Potash Ltd.: Lac Dinga Project Farm Out Update
08-Sep-2017 / 13:20 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
The information communicated within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this announcement,
this inside information is now considered to be in the public domain.
8 September 2017
AFRICAN POTASH LIMITED
("African Potash" or the "Company")
Lac Dinga Project Farm Out Update
Further to its announcement made on 19 July 2017, African Potash is pleased
to provide an update regarding the status of the farm-out transaction (the
"Farm-Out") entered into with African Agronomix Limited ("AAX") relating to
the Company's interest in the Lac Dinga project in the Republic of Congo
(the "Project").
As described in the previous announcement, completion of the Farm-Out is
subject to satisfaction of various conditions (the "Conditions") including
AAX having completed and being satisfied with its due diligence (legal and
technical) on all aspects of the Farm Out.
Under the terms of the Farm-Out, the Company and AAX had agreed that the
Conditions should be satisfied by 31 August 2017. Notwithstanding this, the
Company and AAX have now entered into an "extension" letter to complete the
Farm-Out, which confirms that:
- AAX is satisfied with the results of its legal and technical due diligence
into the Project (thereby satisfying this relevant Condition);
- the remaining Conditions are "less critical to the ability of the Parties
to perform" the Farm-Out. As a result, the Company and AAX have agreed to
extend timing and/or reduce the requirement for satisfaction of certain of
the Conditions; and
- the Company and AAX have agreed to extend the timetable for satisfying or
waiving all the remaining Conditions until 15 September 2017.
African Potash Executive Chairman, Chris Cleverly, said: "This is excellent
news for everyone associated with African Potash and AAX. We can now work
towards completing the other aspects of the Farm-Out as soon as possible.
The work on the Farm-Out paves the way for African Potash to further develop
our fertiliser business in the Republic of Congo and we look forward to
continuing to work with AAX and other national and local partners in the
Republic to expand African Potash's fertiliser interests."
Conal Bunnett, founder director of AAX said: "We are delighted that our
legal and technical due diligence into the Project returned satisfactory
results that enable us to move forwards."
Background Information on African Agronomix Limited
AAX is a private, multi-national company with a well-defined strategy,
conceptually driven by the long-overdue beneficiation of Africa's raw
materials. Currently in the portfolio-building stage, AAX is building a
platform of fertiliser-source mineral deposits with potentially profitable
agricultural and industrial by-product opportunities. The portfolio is
targeted to control resources through key regions within sub-Saharan Africa,
aligned within the west coast, the interior and the east coast geographies.
From this platform, the AAX goal is to create (in the medium term) a
widely-distributed manufacturing base for the entire range of plant-nutrient
products at optimum distances between raw materials and agricultural
consumers. The over-arching strategy is to out-compete and replace
expensive, trade-balance-destroying imports which carry a significant carbon
footprint in transport from offshore. The list of benefits offered to the
continent's economies, its food security, poverty reduction, job creation,
deforestation control, and other environmental advantages are numerous. AAX
already holds several rights and licences with respect to other projects
relating to the same industry as the Project (such as Phosphates) and in
implementing its business plan has in the past completed, and will in the
future remain open to complete, many further partnerships which are or may
be similar in nature to the Earn-In.
The Directors of the Company accept responsibility for the content of this
announcement.
For further information, please contact:
African Potash Limited
Chris Cleverly
+44 (0) 20 7408 9200
Language: English
ISIN: GG00B4QYTJ50
Category Code: MSCH
TIDM: AFPO
Sequence No.: 4610
End of Announcement EQS News Service
608033 08-Sep-2017
(END) Dow Jones Newswires
September 08, 2017 08:22 ET (12:22 GMT)
