The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
8 September 2017
AFRICAN POTASH LIMITED
("African Potash" or the "Company")
Lac Dinga Project Farm Out Update
Further to its announcement made on 19 July 2017, African Potash is pleased to provide an update regarding the status of the farm-out transaction (the "Farm-Out") entered into with African Agronomix Limited ("AAX") relating to the Company's interest in the Lac Dinga project in the Republic of Congo (the "Project").
As described in the previous announcement, completion of the Farm-Out is subject to satisfaction of various conditions (the "Conditions") including AAX having completed and being satisfied with its due diligence (legal and technical) on all aspects of the Farm Out.
Under the terms of the Farm-Out, the Company and AAX had agreed that the Conditions should be satisfied by 31 August 2017. Notwithstanding this, the Company and AAX have now entered into an "extension" letter to complete the Farm-Out, which confirms that:
- AAX is satisfied with the results of its legal and technical due diligence into the Project (thereby satisfying this relevant Condition);
- the remaining Conditions are "less critical to the ability of the Parties to perform" the Farm-Out. As a result, the Company and AAX have agreed to extend timing and/or reduce the requirement for satisfaction of certain of the Conditions; and
- the Company and AAX have agreed to extend the timetable for satisfying or waiving all the remaining Conditions until 15 September 2017.
African Potash Executive Chairman, Chris Cleverly, said: "This is excellent news for everyone associated with African Potash and AAX. We can now work towards completing the other aspects of the Farm-Out as soon as possible.
The work on the Farm-Out paves the way for African Potash to further develop our fertiliser business in the Republic of Congo and we look forward to continuing to work with AAX and other national and local partners in the Republic to expand African Potash's fertiliser interests."
Conal Bunnett, founder director of AAX said: "We are delighted that our legal and technical due diligence into the Project returned satisfactory results that enable us to move forwards."
Background Information on African Agronomix Limited
AAX is a private, multi-national company with a well-defined strategy, conceptually driven by the long-overdue beneficiation of Africa's raw materials. Currently in the portfolio-building stage, AAX is building a platform of fertiliser-source mineral deposits with potentially profitable agricultural and industrial by-product opportunities. The portfolio is targeted to control resources through key regions within sub-Saharan Africa, aligned within the west coast, the interior and the east coast geographies. From this platform, the AAX goal is to create (in the medium term) a widely-distributed manufacturing base for the entire range of plant-nutrient products at optimum distances between raw materials and agricultural consumers. The over-arching strategy is to out-compete and replace expensive, trade-balance-destroying imports which carry a significant carbon footprint in transport from offshore. The list of benefits offered to the continent's economies, its food security, poverty reduction, job creation, deforestation control, and other environmental advantages are numerous. AAX already holds several rights and licences with respect to other projects relating to the same industry as the Project (such as Phosphates) and in implementing its business plan has in the past completed, and will in the future remain open to complete, many further partnerships which are or may be similar in nature to the Earn-In.
The Directors of the Company accept responsibility for the content of this announcement.
For further information, please contact:
African Potash Limited
Chris Cleverly
+44 (0) 20 7408 9200
