African Potash Limited ('African Potash' or 'the Company')
Fertiliser Trade with Windmill (Pvt) Ltd
African Potash, the AIM listed exploration company focussed on the vertical integration of fertiliser operations in Africa and sub-Saharan potash assets, is pleased to announce its inaugural fertiliser trade ('the trade') with Windmill (Pvt) Ltd ('Windmill'), a privately-owned fertiliser producer in Southern Africa.
· Separate to the joint venture agreement announced on 1 December 2015, African Potash has signed an additional contract with Beryl Holdings Pty Limited ('Beryl') for the purchase of 3,000 tonnes of urea fertiliser stock ('the Stock') from Beryl for sale to Windmill
· The Company expects to receive a net revenue of US$300,000 from this trade
· This trade is separate to the trades envisaged by the previous MOUs signed and announced by African Potash
· The Stock has been delivered to Windmill's warehouse in Harare, Zimbabwe
· Under the contract, payment by Windmill will take place by 30 January 2016
· African Potash will have no obligation to make any payment to Beryl until such time as it receives sales proceeds from Windmill
· A further announcement will be made in due course once payment from Windmill is received
The adviser to transaction was Butterfly Corporate Finance.
Commenting on the trade agreement, African Potash Executive Chairman Chris Cleverly said, "African Potash continues to make important strides towards achieving our aim of becoming a significant new vertically integrated fertiliser company, focussed on Africa.
"Building a strong permanent relationship with a company such as Windmill, which has an important position in the rapidly expanding African fertiliser industry, is a vital move for African Potash. This agreement, which is significant not only for the near-term revenue it should generate for the Company, forges an important additional affiliation between us and a major player in our target market, which should prove to be mutually beneficial for both African Potash and Windmill moving forward."
Mr George Rundogo, the Chief Executive Officer of Windmill, said, "We are delighted to be working with African Potash on the basis of this first concluded trade; we wish to establish a long term relationship with them. With climatic changes effecting long term agriculture patterns, fertiliser in Africa is becoming ever more important."
Windmill is a major privately-owned fertiliser producer in southern Africa exporting its products mainly to Zambia and Malawi, and a certain amount to Mozambique with long term plans to pursue opportunities in the Democratic Republic of Congo (DRC) and Angola.
For more information, please visit www.windmill.co.zw.
African Potash is an AIM quoted company focussed on building a vertically integrated platform for the mining, production and distribution of fertiliser, primarily within Africa.
The Company has a trading agreement with the Common Market for Eastern and Southern Africa ('COMESA'), a free trade union for twenty African member states, to supply and deliver at least 500,000 metric tonnes of fertilisers on an annual basis to off-takers identified and introduced by COMESA. To date a number of supply agreements have been secured in Zambia, Zimbabwe, Malawi and the Democratic Republic of Congo.
The Company also operates the Lac Dinga Project in the Republic of Congo, which is prospective for potash, a key source of potassium fertiliser.
This information is provided by RNS
The company news service from the London Stock Exchange