African Potash Limited ("African Potash" or "the Company")
Negotiations with COMESA
As part of the Company's strategy of expanding its activities, leveraging its position and identifying potential downstream opportunities for the development of its Lac Dinga Potash Project ('Lac Dinga'), African Potash, the AIM listed exploration company focused on sub-Saharan potash assets, is pleased to announce that it has entered into discussions with the ACTESA agency of the Common Market for Eastern and Southern Africa ('COMESA'), a free trade union for twenty African member states, with a view to creating a vertical platform for the mining, production and distribution of fertiliser, focussed on the Eastern and Southern Africa (COMESA States) region and beyond.
African Potash was identified as a potential partner for COMESA on the account of its standing, expertise and experience in the mining, agriculture and fertiliser sectors and its achievements in advancing Lac Dinga, where uniform potash mineralisation has been identified in three laterally continuous horizons. Negotiations will be centred on COMESA and African Potash partnering to operationalise and advance the COMESA fertiliser development programme, including exploring fertiliser financing options and identifying ways to exploit the African fertiliser manufacturing resources, in particular utilising potash, phosphates and natural gas to manufacture appropriate and affordable fertiliser for African smallholder farmers.
Further details on the discussions and the development of the Company's corporate strategy to advance into the fertiliser space, broaden its agricultural activities and utilise its experience to create a vertical platform for African focussed mining, production and distribution of fertiliser, will be announced in due course.
African Potash Chairman Chris Cleverly said, "Africa is a continent of 1.1 billion people with 60% of the World's undeveloped arable land. As the continent transforms with rapid urbanisation and fast growing economies, the requirement for a developed agriculture industry to feed Africa will become imperative. African Potash, with a board experienced in commodities and African operations, is well positioned on the global capital market stage to meet and deliver on these demands as we look to become a vertically integrated mining, production and distribution African focused fertiliser business."