African Potash Limited ("African Potash" or "the Company")
MOU for the supply of 150,000MT of fertiliser in Zimbabwe
African Potash, the AIM listed exploration company focused on sub-Saharan potash assets, is pleased to announce that it has entered into a Memorandum of Understanding (the "Trading Agreement") with a Zimbabwean fertiliser supply company with a view to supplying it with 150,000 metric tonnes ("MT") of fertiliser. This is the third fertiliser Trading Agreement secured by African Potash following the landmark trading agreement with the Common Market for Eastern and Southern Africa ("COMESA ACTESA") and the Mask Africa Crowd Farm Fund Limited in August 2015, underpinning the Company's active growth strategy as it looks to build a vertical platform for the mining, production and distribution of fertiliser.
Under the terms of the Trading Agreement, which is subject to the signing of definitive transaction agreements, African Potash will source and fund the delivery of fertiliser through its proprietary network and methods, with first delivery anticipated later this year.
African Potash Executive Chairman Chris Cleverly said, "African Potash continues to deliver upon its strategy of becoming a significant, vertically integrated fertiliser provider in Africa. African farms are only performing at 40% of their potential and simple measures such as quality, affordable fertiliser can triple productivity, which in turn has the potential to grow Africa economically. This Trading Agreement, which is the third of its kind we've entered into in the last month since our initial agreement with COMESA ACTESA, highlights our active growth strategy and commitment to building a commercial fertiliser business."