('African Potash' or 'the Company')
Data Sharing Agreement with Elemental Minerals Ltd, Appointment of CSA Global and Change of Director
African Potash (AIM:AFPO), the AIM listed company focussed on sub-Saharan potash assets, is pleased to announce that is has entered into a data sharing agreement ('the Agreement') with Elemental Minerals Ltd ('Elemental'), designed to support the development of African Potash's 702.5 sq km Lake Dinga Project Area ('Lake Dinga' or 'the Project') in the Republic of Congo. Elemental is currently subject to an approximate A$190m bid from the Dingyi Group Investment Limited, whose primary asset is the 93% owned Sintoukola Potash Project ('Sintoukola') which is contiguous to Lake Dinga.
The Agreement will considerably enhance the Company's focus on future exploration activities and the generation of drill targets at Lake Dinga, which is highly prospective for potash. Being adjacent to Sintoukola, the data sharing agreement will be invaluable in the further definition of the potash potential of the licence.
Sintoukola has been reported as having:
· a Measured and Indicated sylvinite Resource of 573Mt grading 20.92% K20 (33.14% KCl)
· a Proven and Probable Reserve of 151.7Mt grading 20.02% K20 (31.69% KCl)
· a 23 year life of mine (as per its pre-feasibility study)
Elemental is currently undertaking a Definitive Feasibility Study targeted for completion in Q1 2014. Elemental has been an active explorer and investor in the region since 2008, culminating in the compilation of an extensive exploration database covering African Potash's area of focus and the wider Lake Dinga region.
The Company is also pleased to announce the appointment of CSA Global as exploration consultants for the Project. By leveraging the considerable data compiled by the highly experienced Elemental team and utilising CSA Global's significant recent experience on Sintoukola, the Board believes that African Potash will be extremely well placed as it plans its exploration programme, which it anticipates will commence later in 2013.
African Potash further reports that it is in the advanced stages of appointing a new independent director, whose extensive industry experience the Board believes will be of great benefit as the Company makes plans to move towards commencing exploration activities at Lake Dinga. In this context, with the Board due to be supplemented in the near future, Mr. P.H. Edmonds, a non-executive director of the Company since inception, has stepped down from the Board with immediate effect and will focus on his other activities.
African Potash CEO Edward Marlow said: "This highly strategic data sharing agreement will be an important tool in the development of our exploration activities at our highly prospective Lake Dinga Project. Access to this strategically valuable database will help enable the Company to define drill targets as we seek to identify significant potash mineralisationand assess the Project's resource potential. The agreement underpins our investment in Lake Dinga, which is contiguous to Sintoukola, work with CSA Global is well advanced and I look forward to providing shareholders with an update on our exploration activities in due course. On a wider view, I am highly encouraged by the A$190 million bid for Elemental as I believe it highlights the potential of our project and value upside."
"In addition, I would like to take this opportunity to thank Phil for his highly valuable input in the development of African Potash over the past two years, and wish him every success in the future. The Company will update shareholders on the appointment of our new director in due course."
African Potash was established to invest in/acquire potash assets or projects in sub-Saharan Africa. The Directors believe the fundamentals of the global potash market, a key source of potassium fertiliser, represent a compelling opportunity to create shareholder value.
The Company is currently focussed on the Lake Dinga Project in the Republic of Congo and has a highly experienced Board with a proven track record in identifying, operating and developing resource projects in Africa.
This information is provided by RNS
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