African Potash Limited ('African Potash' or the 'Company')
Result of General Meeting and Completion of Acquisition
African Potash, the AIM listed investing company focussed on sub-Saharan potash assets, announces that all resolutions were duly passed at the General Meeting held today.
Accordingly, having received the requisite shareholder approval, African Potash will now proceed with the acquisition of the entire issued share capital of Patagonia Capital Limited, a Mauritian company which holds a 70% interest in La Societe des Potasses et des Mines S.A., a company incorporated in the Republic of Congo, which holds the exclusive right to conduct mining research activities for potash salts over the Lake Dinga project area in the Republic of Congo (the 'Acquisition'). Full details of the Acquisition are set out in the Company's admission document dated 28 January 2013.
In anticipation of formal completion of the Acquisition, which will take place on 22 February 2013, application has been made to the London Stock Exchange for 27,883,062 new ordinary shares of no par value in the capital of the Company (the 'Consideration Shares') to be admitted to trading, with effect from 22 February 2013.
The Consideration Shares will represent 12.3% of the Company's enlarged issued share capital after completion of the Acqusition, which enlarged issued share capital will then comprise 226,583,062 ordinary shares of no par value.
Additionally the Company announces that Mr. Jean-Pierre Conrad will be appointed to the Board as non-executive Chairman, effective on completion of the Acquisition, on 22 February 2013. Mr. Conrad has extensive experience in the resources industry in addition to a solid background in the financial markets. He started his banking career in Switzerland; in 1994 he joined Marc Rich & Co. which became Glencore International plc where he was responsible for corporate finance activities in the metals and minerals division in Switzerland. He was subsequently appointed chief financial officer of Xstrata plc in 1997, which evolved from an investment vehicle to a diversified natural resource group during his period in office. Since leaving Xstrata at the end of 2001, he has pursued various private ventures with a number of these focussed on the natural resources sector. He is currently a director of Consolidated General Minerals PLC and of Financiere Mermond SA, a private asset management company in Switzerland. Further details regarding Mr. Conrad are provided in the Company's admission document dated 28 January 2013 and as such, there are no further disclosures to be made in relation to Mr Conrad pursuant to Schedule Two, paragraph (g) of the AIM Rules for Companies.
African Potash CEO Edward Marlow said: "The Lake Dinga Project represents a highly compelling investment opportunity for the Company, and I am delighted that following this shareholder approval, African Potash can move forward and complete this acquisition. Lake Dinga, which will be our maiden investment, is believed to be highly prospective for potash and is located in a region that hosts world class potash projects including Sintoukola and Mengo. The acquisition of a majority stake in the Lake Dinga project, in accordance with our stated investing strategy, offers significant upside potential for the Company, and I look forward to planning and developing an exploration programme in order to define the resource potential of this exciting new asset.
"In addition, I would like to welcome Jean-Pierre to the Company. I am confident that his proven knowledge and understanding of the resources industry and financial markets will be of great value as we develop the Lake Dinga project and build value for shareholders."
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For further information visit www.africanpotash.com or contact the following:
African Potash Limited
+44 (0) 20 7408 9200
+44 (0) 20 7107 8000
+44 (0) 20 7107 8000
GMP Securities Europe LLP
+44 (0) 20 7647 2836
St Brides Media and Finance Ltd
+44 (0) 20 7236 1177
This information is provided by RNS
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