African Potash Limited ("African Potash" or "the Company")
Off-Taker term sheet with Ecobank Malawi
African Potash, the AIM listed exploration company focused on sub-Saharan potash assets and the vertical integration of fertiliser operations in Africa, is pleased to announce that its investment banking advisor Loita Capital Partners International ('Loita') has arranged an off-taker finance facility term sheet (the 'Term Sheet') with Ecobank Malawi (the 'Bank') in respect of African Potash's fertiliser trading operations.
The Term Sheet indicates that the Bank will engage with the Company's off-take partners with a view to providing finance by way of letters of credit, issued by the Bank on behalf of off-takers, in favour of African Potash. Provision of finance by the Bank to the Company's off-take partners will be subject to contract and credit approval. Any letters of credit granted by the Bank in this context will in effect provide a guarantee of payments to African Potash, thereby enabling African Potash to finalise its own trade finance facilities, which are required to complete its recently announced fertiliser agreements.
African Potash Executive Chairman Chris Cleverly said, "We are delighted, that with the guidance of our investment banker Loita, we have made these arrangements for our off-take partners. This represents achievement of a further milestone in the development of our fertiliser trading operations. We are grateful for this indication of support from Ecobank Malawi, which we hope will go a long way in assisting us in completing the roll out of our fertiliser trading operations."