http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Sun, 21 Jan 2018 22:38:53 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - African Potash's blockchain tech set for big impact in Africa ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8619/african-potash-s-blockchain-tech-set-for-big-impact-in-africa-8619.html Tue, 16 Jan 2018 12:02:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8619/african-potash-s-blockchain-tech-set-for-big-impact-in-africa-8619.html <![CDATA[News - African Potash extends reach into blockchain with TokenCommunities joint venture ]]> http://www.proactiveinvestors.co.uk/companies/news/189940/african-potash-extends-reach-into-blockchain-with-tokencommunities-joint-venture-189940.html African Potash Ltd (LON:AFPO) furthered its entry into game-changing blockchain technology - striking a deal on a joint venture with Gibraltar firm, TokenCommunities Limited.

The group said this will complement the FinComEco joint venture struck in November and will bolster its plans to operate a range of platforms and projects in the agricultural commodity markets sector in sub-Saharan Africa.

READ: African Potash announces new joint venture for Republic of Congo

"It will help enable smallholder farmers to raise productivity and potentially obtain a better price for their produce. In the longer term, it may provide opportunities for further income growth as well as opening alternative added-value opportunities including broader e-commerce-enabled enterprises," said the company.

TokenCommunities will advise on the deploying tokens, which will allow users to gain access to a digital resource.

AFPO expects that demand will be driven by microloans provided by African Potash direct to so-called small-scale farmers (SSF) all within the blockchain space.

These microloans are expected to bear interest at around 12% a year, which will be a significant disrupter because farmers currently can pay well over double this rate. 

READ: African Potash will partner GMEX for block chain joint venture

"The blockchain system tokens are expected to generate other e-commerce opportunities as demand evolves. This agreement represents a further step in our strategy to build a vertically integrated fertiliser business from initial resource through to selling, using blockchain technology, direct to the farm," said Chris Cleverly, executive chairman at African Potash.

"This strategy is reflected in the proposed change of name to Block Commodities limited".

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Fri, 12 Jan 2018 08:53:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/189940/african-potash-extends-reach-into-blockchain-with-tokencommunities-joint-venture-189940.html
<![CDATA[News - African Potash announces new joint venture for Republic of Congo ]]> http://www.proactiveinvestors.co.uk/companies/news/188123/african-potash-announces-new-joint-venture-for-republic-of-congo-188123.html African Potash Ltd (LON:AFPO) has furthered its aims to expand its fertiliser business by striking a new joint venture deal with SG Inc following a memorandum of understanding inked in August with the government of the Republic of Congo.

The two companies are set to develop and commercialise resources in the Republic of Congo to produce fertiliser, with each party owning 50% of the joint venture.

SG INC has an excellent track record of building resource-based and other businesses in the Republic of Congo, the firm said.

"The combination of proven key 'in situ' fertiliser components, along with existing and planned infrastructure in the Republic of Congo is significant," said Chris Cleverly, African Potash's executive chairman.

"The proximity of the port facilities at Pointe Noire ultimately offers access to international markets," he added.

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Fri, 01 Dec 2017 11:47:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/188123/african-potash-announces-new-joint-venture-for-republic-of-congo-188123.html
<![CDATA[News - African Potash will partner GMEX for block chain joint venture ]]> http://www.proactiveinvestors.co.uk/companies/news/187902/african-potash-will-partner-gmex-for-block-chain-joint-venture-187902.html African Potash Ltd (LON:AFPO) has agreed a joint venture with FinComEco to execute its new block chain-based agriculture distribution network in southern Africa.

FinComEco, a subsidiary of GMEX, will buy crops grown by farmers who have received microloans from African Potash.

READ: African Potash to raise £400,000 for block chain payment scheme

The microloans are expected to bear interest at approximately 12% per annum, a significant discount to rates currently on offer to farmers, said African Potash, which will change its name to Blockchain Commodities Limited at the next AGM.

Mark Simmonds, a non-exec at African Potash, is also currently chairman of FinComEco. 

Blockchain to generate other e-commerce opportunities

Chris Cleverly, African Potash’s executive chairman, said: "By linking agriculture to blockchain technology, the joint venture will facilitate agricultural value-chain efficiencies. 

“Demand for agricultural inputs will be driven by the provision of low cost microloans direct to Small Scale Farmers for them to purchase inputs from our designated warehouses; with repayment in the form of warehouse receipts of SSF outputs.

“The blockchain system tokens are expected to generate other e-commerce opportunities as demand evolves.” 

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Tue, 28 Nov 2017 11:31:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/187902/african-potash-will-partner-gmex-for-block-chain-joint-venture-187902.html
<![CDATA[News - African Potash to raise £400,000 for block chain payment scheme ]]> http://www.proactiveinvestors.co.uk/companies/news/187418/african-potash-to-raise-400000-for-block-chain-payment-scheme-187418.html African Potash Ltd (LON:AFPO) aims to raise £400,000 to set up an blockchain-based payment system for its fertiliser distribution business.

A review of its strategy and corporate branding in Africa is also underway to assess how the use of blockchain will change its supply chain and eVoucher scheme.

READ: African Potash raises £60,000 after completing a private placing of 100mln new shares at 0.06p each

The money will be raised in two tranches: £68,000 today and £332,000 on December 13 after shareholder approval.

Chris Cleverly, executive chairman, said: "The company has a short term working capital requirement and is looking to expand its African fertiliser trading capacity.

“This it intends to do through the deployment of a blockchain-based funding and financing solution.

READ: African Potash and AAX extend period to complete Lac Dinga project farm-out

“This will  provide a secure payment mechanism (an eVoucher) for farmers borrowing to purchase fertiliser from the company.

“It will also ensure the reimbursement of the company and our funding partners."

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Fri, 17 Nov 2017 07:43:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/187418/african-potash-to-raise-400000-for-block-chain-payment-scheme-187418.html
<![CDATA[News - African Potash raises £60,000 after completing a private placing of 100mln new shares at 0.06p each ]]> http://www.proactiveinvestors.co.uk/companies/news/186213/african-potash-raises-60000-after-completing-a-private-placing-of-100mln-new-shares-at-006p-each-186213.html African Potash Ltd. (LON:AFPO) announced that it has completed a private placing to raise £60,000 before expenses, under which the firm issue 100,000,000 new ordinary shares at a price of 0.06p each.

The NEX Growth Market-listed group said the proceeds from the share subscription will be used for working capital purposes and to further support and develop the company's fertilizer trading business.

READ: African Potash shares on the way to NEX restoration

It added that the subscription shares will, on issue, amount to 4.79% of the company’s enlarged issued share capital.

In addition, the company said it has granted warrants to Alexander David Securities Limited over 56,283,374 shares of the enlarged share capital, also at a price of 0.06p each, valid for three years from the date of the broker’s appointment.

African Potash shares resumed trading on the NEX Change on Monday October 23 following the publication of its accounts for the year to 30 June 2017.

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Wed, 25 Oct 2017 16:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/186213/african-potash-raises-60000-after-completing-a-private-placing-of-100mln-new-shares-at-006p-each-186213.html
<![CDATA[News - African Potash shares on the way to NEX restoration ]]> http://www.proactiveinvestors.co.uk/companies/news/186007/african-potash-shares-on-the-way-to-nex-restoration-186007.html Following the publication of its accounts for the year to 30 June 2017, African Potash Limited (NEX:AFPO) has now applied for its shares to be relisted on London’s NEX market.

African Potash directors stated that they believe the company “continues to have strong prospects for the future.”

READ: African Potash and AAX extend period to complete Lac Dinga project farm-out

African Potash stated in a statement that it will continue to comply with the NEX Exchange Growth Market rules and corporate governance code in all aspects including financial reporting and disclosure of information obligations.

An application has been made by the company to NEX Exchange for the resumption of trading in its shares on the Stock Exchange with effect from 9.00 a.m. on 23 October 2017.

 

 

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Mon, 23 Oct 2017 08:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/186007/african-potash-shares-on-the-way-to-nex-restoration-186007.html
<![CDATA[News - African Potash and AAX extend period to complete Lac Dinga project farm-out ]]> http://www.proactiveinvestors.co.uk/companies/news/183686/african-potash-and-aax-extend-period-to-complete-lac-dinga-project-farm-out-183686.html African Potash Ltd (LON:AFPO) revealed that its Lac Dinga project farm-out deal with African Agronomix (AAX) has been extended until September 15 this year for all conditions to be satisfied or waived.

As reported in July, the deal sees AAX potentially acquire all of the project in the Republic of Congo.

African Potash, which holds 70% of Lac Dinga via the La Société des Potasses et des Mines SA (SPM) vehicle, would receive 5 mln new shares in AAX as well as warrants giving it the option to buy another 2.5 mln (each priced at 5p).

The pair had agreed that the conditions should be satisfied by the end of August this year, but have now extended that until September 15.

AAX however is satisfied with the results of its legal and technical due diligence into the project, it was revealed today.

African Potash's 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."

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Fri, 08 Sep 2017 14:54:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/183686/african-potash-and-aax-extend-period-to-complete-lac-dinga-project-farm-out-183686.html
<![CDATA[News - African Potash inks farm-out deal with AAX on Lac Dinga project ]]> http://www.proactiveinvestors.co.uk/companies/news/181136/african-potash-inks-farm-out-deal-with-aax-on-lac-dinga-project-181136.html African Potash Ltd (LON:AFPO) has unveiled a deal with African Agronomix (AAX) which sees the latter potentially acquiring all of the Lac Dinga project in the Republic of Congo.

It would see African Potash, which holds 70% of Lac Dinga via the La Société des Potasses et des Mines SA (SPM) vehicle, receive 5 mln new shares in AAX as well as warrants giving it the option to buy another 2.5 mln (each priced at 5p).

AAX also commits to certain spending milestones for the project.

"This is a positive move for all concerned and fits in with our long-held ethos of helping the African farmer,” said Chris Cleverly, executive chairman.

“The transaction endorses our belief in the long-term viability of the Lac Dinga project.

“We are excited about working with our new colleagues in moving toward a food secure future for some of the world's poorest people."

Meanwhile, AAX founding director, Conal Bunnett said: “We are delighted to embark upon this mutually advantageous arrangement with our project partners, African Potash.

“The Lac Dinga prospect offers high hopes of a significant potash resource on the African West Coast, the success of which will cement a key strategic component in the ambitious rollout of our plan to create a vertically-integrated, pan-African fertiliser business."

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Wed, 19 Jul 2017 11:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/181136/african-potash-inks-farm-out-deal-with-aax-on-lac-dinga-project-181136.html
<![CDATA[News - African Potash issues handy primer for trading on ISDX ]]> http://www.proactiveinvestors.co.uk/companies/news/170226/african-potash-issues-handy-primer-for-trading-on-isdx-170226.html African Potash Ltd (ISDX:AFPO) has given shareholders some ‘top tips’ on how its shares may be traded on the ISDX Growth Market.

The company moved from Aim to ISDX this week, and has evidently received a number of queries from existing and potential shareholders regarding trading arrangements on the exchange.

African Potash’s statement noted that ISDX is a "quote-driven" trading platform, with a number of individual market makers making a real-time, dynamic market in the company's ordinary shares.

African Potash shares may be bought and sold electronically through the Proquote Retail Service Provider platform, while shareholders are additionally able to trade African Potash shares via over 45 retail brokers.

Several of these brokers provide electronic facilities for buying and selling ISDX quoted shares, African Potash said.

Share price information on ISDX Growth market shares is available on traditional financial data information platforms, such as Reuters and Bloomberg, and on the dealing service of the online sites of those brokers that offer the facility to trade the company’s stock.

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Fri, 09 Dec 2016 08:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/170226/african-potash-issues-handy-primer-for-trading-on-isdx-170226.html
<![CDATA[News - African Potash shares up amid strong volumes ]]> http://www.proactiveinvestors.co.uk/companies/news/158446/african-potash-shares-up-amid-strong-volumes-158446.html African Potash Ltd (LON:AFPO), the AIM-quoted fertiliser trading  business, saw strong trading of its shares Tuesday.

The stock was the third most actively traded in London, with 153.37mln bits of paper changing hands in what was a busy session. The share price also rose on the day by over 10%.

Last week, the group issued a financial update, saying it was raising half a million pounds sterling in a subscription and amending the terms of last year's bridging loan in a bid to provide a base on which to grow.

The firm said it was issuing over 235mln shares at 0.2125 pence each, with an an over-allotment option for a further 70.5mln shares,  exercisable at any time on or before November 24 this year.

In 2015, AFPO agreed a £750,000 bridge facility with Katrina Clayton, the wife of chief financial officer, Neil Clayton to meet its short-term working capital needs and this has also been amended.

That loan is now repayable on the earlier of: September 1 next year, the completion of equity financings after the Subscription which in total raise more than £1.5mln and the securing of any non-trade finance debt financing.

Executive chairman of AFPO Chris Cleverly said on Thursday last week: "Shareholders will be aware, from our recent announcements, of the traction which we are gaining in the market and we are confident that this funding will assist in revenue generation. 

"We are progressing with these initiatives and have others in the pipeline and will update the market accordingly as we progress."

Shares today gained over 10% to 0.249p.

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Tue, 06 Sep 2016 13:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/158446/african-potash-shares-up-amid-strong-volumes-158446.html
<![CDATA[News - African Potash to raise £500,000 for fertiliser business ]]> http://www.proactiveinvestors.co.uk/companies/news/129906/african-potash-to-raise-500000-for-fertiliser-business-129906.html African Potash Ltd (LON:AFPO) is raising half a million pounds in a subscription and amending the terms of last year's bridging loan to pursue its fertiliser trading ambitions.

The firm is issuing over 235mln shares at 0.2125 pence each. Shares closed yesterday at 0.325p.

There is also an over-allotment option for a further 70.5mln shares,  exercisable at any time on or before November 24 this year.

In December last year, the AIM group agreed a £750,000 bridge facility with Katrina Clayton, the wife of chief financial officer, Neil Clayton. to meet its short-term working capital needs.

The amendment means the loan is now repayable on the earlier of: September 1 next year, the completion of equity financings after the Subscription which in total raise more than £1.5mln and the securing of any non-trade finance debt financing.

Clayton will receive an amendment fee of 5% of the total outstanding facility amount, which will be paid in cash from the proceeds of the subscription.

Executive chairman of AFPO Chris Cleverly said: "It is hoped that the funds raised at this time and the accommodation provided by the amendment to the existing bridge loan will provide the company with a solid platform from which to further grow our ambitious fertiliser trading programme. 

"Shareholders will be aware, from our recent announcements, of the traction which we are gaining in the market and we are confident that this funding will assist in revenue generation.  We are progressing with these initiatives and have others in the pipeline and will update the market accordingly as we progress."

Shore Capital, which has no recommendation on the stock,  ponders: "We wonder if the extension was necessary because more equity couldn’t be raised at a reasonable price to pay it off today as originally scheduled."

Shares shed over 30% to 0.225p on the day.

In-Depth - African Potash unveils second deal in less than a month

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Thu, 01 Sep 2016 08:11:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/129906/african-potash-to-raise-500000-for-fertiliser-business-129906.html
<![CDATA[News - African Potash starts fertiliser deliveries under Zambian agreement ]]> http://www.proactiveinvestors.co.uk/companies/news/129767/african-potash-starts-fertiliser-deliveries-under-zambian-agreement-129767.html African Potash (LON:AFPO has received an order for 1,500 Metric Tonnes (Mt) of urea from the state-run Zambia Co-Operative Federation (ZCF).

The order comes under the scope of the Zambia government’s e-voucher scheme and is part of a fertiliser supply agreement previously agreed. 

Under the E-Voucher Scheme, the  Zambia government provides farmers with a voucher with a value that is used to buy agricultural inputs from specified, government approved outlets without cash changing hands. 

Deliveries of the 1,500Mt order have now commenced with ZCF being responsible for logistics and transport. 

Under the arrangement, fertiliser is owned by Gavilon, part of the Marubeni Corporation, until payment is received from ZCF under the E-Voucher Scheme. 

African Potash would then expect to receive a margin payment from Gavilon of approximately US$65 per Mt of fertiliser sold. It added it is not required to meet the cost of the fertiliser supply from its margin payment.

Chris Cleverly, executive chairman, said:  "African Potash, together with our trading partners, are strong supporters of the E-Voucher Scheme and recognise the potentially ground-breaking implications for the agricultural development of Zambia which can be delivered through its execution. 

"Deliveries are now beginning and we look forward to building on these trades in the coming months."

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Fri, 26 Aug 2016 16:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/129767/african-potash-starts-fertiliser-deliveries-under-zambian-agreement-129767.html
<![CDATA[News - Blenheim Natural Resources shares boosted by Zambia investment ]]> http://www.proactiveinvestors.co.uk/companies/news/129107/blenheim-natural-resources-shares-boosted-by-zambia-investment-129107.html Shares in Blenheim Natural Resources plc (LON:BNR)  added over 7% in  early deals as it struck a deal to invest in a firm which holds a large prospective copper/gold property in Zambia.

Blenheim will pay £1 for an option to acquire, subject to certain conditions, 7.5% of the share capital of TAM Mining Ltd, which holds the exclusive rights to the West Lumba project.

African Potash Ltd (LON:AFPO) owns 8.75mln shares in Blenheim, or 4.7% and it shares gained 4% in early deals to 0.390p.

Blenheim chairman Chris Ells said: "TAM's West Lumba project is the most promising mineral project we have reviewed over the past two years and we are delighted to work with TAM to provide the commercial and technical management input needed to develop TAM's licence area and to help it raise new investment."

Blenheim shares gained 7.14% to 0.375p.

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Mon, 08 Aug 2016 10:17:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/129107/blenheim-natural-resources-shares-boosted-by-zambia-investment-129107.html
<![CDATA[News - African Potash unveils second deal in less than a month ]]> http://www.proactiveinvestors.co.uk/companies/news/128900/african-potash-unveils-second-deal-in-less-than-a-month-128900.html African Potash PLC (LON:AFPO), the fertiliser trading firm, said it signed a deal with a distributor in Zambia.

The 12 month tie-up with Rockwell Fertilisers follows less than a month after it inked an agreement with Nutri-Aid Trust, a Zambian non-profit organisation.

Under the latest collaboration, AFPO will receive 50% of its cash upfront for any order and the remainder 45 days later.

Rockwell will receive 30% of the profit from business generated. The size of orders is expected to vary “in accordance with buyer demand”, the firm said.

Chairman Chris Cleverley added: “We are delighted to have further strengthened our trading presence in Zambia and the southern African region through the signing of this trading agreement with Rockwell, which complements our recently announced trading agreement with Nutri-Aid.

“With a number of strategic partners in place through whom we can secure off-take agreements for the purchase of our fertiliser product, and the results of this strategy already showing success, I believe African Potash is well set for continued growth."

NEWS: AFPO still confident about contract  UPDATE: Company renews Lac Dinga licence 

As mentioned earlier, AFPO is also working with Nutri-Aid Trust, an organisation working to develop a dealer network at village level across Zambia.

It will be part of a supply network, serving 2,500 outlets, which each then provide around 300 farmers with fertiliser.

A first delivery took place on July 10 and subsequent sales by African Potash to the outlets over the following days.

The jewel in the crown (so far as the company’s trading operation is concerned) is an deal to supply at least 500,000 tonnes of fertiliser a year to groups introduced by African free trade group, Comesa.

Vertically integrated company

AFPO also owns the 702 square-kilometre Lac Dinga potash project in the Republic of Congo, which offers the potential, eventually, for it to produce its own product.

The longer-term plan is to create a vertically integrated operator that has the mining, processing and marketing skills to tap into a region that buys in an estimated 10mln tonnes of fertiliser a year.

In an interview with Proactive chairman Cleverly pointed to the development of Dangote Group, run by Aliko Dangote, Africa’s richest man, as revealing just where Africa’s smart money is headed.

Having started out in cement and then focused on sugar, Dangote is staking its future on the nascent agricultural sector in Africa and fertiliser in particular. Others are following in its wake.

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Tue, 02 Aug 2016 12:45:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128900/african-potash-unveils-second-deal-in-less-than-a-month-128900.html
<![CDATA[News - African Potash signs second Zambia deal in less than a month ]]> http://www.proactiveinvestors.co.uk/companies/news/128875/african-potash-signs-second-zambia-deal-in-less-than-a-month-128875.html African Potash PLC (LON:AFPO), the fertiliser trading firm, said it signed a deal with a distributor in Zambia.

The 12 month tie-up with Rockwell Fertilisers follows less than a month after it inked an agreement with Nutri-Aid Trust, a Zambian non-profit organisation.

Under the latest collaboration, AFPO will receive 50% of its cash upfront for any order and the remainder 45 days later.

Rockwell will receive 30% of the profit from business generated. The size of orders is expected to vary “in accordance with buyer demand”, the firm said.

Chairman Chris Cleverley added: “We are delighted to have further strengthened our trading presence in Zambia and the southern African region through the signing of this trading agreement with Rockwell, which complements our recently announced trading agreement with Nutri-Aid. 

“With a number of strategic partners in place through whom we can secure off-take agreements for the purchase of our fertiliser product, and the results of this strategy already showing success, I believe African Potash is well set for continued growth."

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Tue, 02 Aug 2016 07:28:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128875/african-potash-signs-second-zambia-deal-in-less-than-a-month-128875.html
<![CDATA[News - African Potash already seeing revenue from Nutri-Aid Trust deal in Zambia ]]> http://www.proactiveinvestors.co.uk/companies/news/128134/african-potash-already-seeing-revenue-from-nutri-aid-trust-deal-in-zambia-128134.html Fertiliser  trader African Potash Ltd (LON:AFPO) has already seen revenues from a deal struck with Nutri-Aid Trust, an organisation working to develop a dealer network at village level across Zambia.

African Potash will take part in the supply network, serving 2,500 outlets, which each serve around 300 farmers with fertiliser.

A first delivery took place on July 10 and subsequent sales by African Potash to the outlets over the following days have led to around $50,000 of revenues.

These will be used to pay its suppliers, said African.

Executive chairman Chris Cleverly told investors: "We are delighted to have signed this agreement with Nutri-Aid, which gives African Potash access to sales outlets for small holder farmers. 

"I am pleased to report that initial revenues have already been generated and funds received.  We are laying the foundations for growth and I look forward to keeping shareholders updated with our progress."

Nutri-Aid is a consortium made up of Frontier Associates, Farmer Organisation (FOSUP) and Women in Agribusiness in sub-Saharan Africa (WASSA)).

It is committed to implementing the SAIOMA (Strengthening Agricultural Input and Output Markets) initiative launched by the US agency for International Development and the alliance for  Green Revolution in Africa.

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Wed, 13 Jul 2016 07:23:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128134/african-potash-already-seeing-revenue-from-nutri-aid-trust-deal-in-zambia-128134.html
<![CDATA[News - African Potash signs fertiliser distribution MOU with Uganda ]]> http://www.proactiveinvestors.co.uk/companies/news/127053/african-potash-signs-fertiliser-distribution-mou-with-uganda-127053.html Fertiliser specialist African Potash (LON:AFPO) has signed a non-binding Memorandum of Understanding (MoU) with the Ugandan government to develop a distribution network for the country’s farmers. 

The MoU is supported by the Common Market for Eastern and Southern Africa (COMESA), a trading group of twenty African countries that is already in partnership with African Potash. 

Under the agreement, African Potash will source and deliver 20,000 metric tonnes of fertilisers from overseas to the Ugandan capital Kampala to bought by the government. 

It will also undertake a feasibility study to assess the viability for the manufacture of fertilisers in Uganda using local materials that and may lead to a manufacturing agreement.

The MOU is subject to the signing of definitive legally binding agreements.

Shares rose 13% to 0.65p.

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Mon, 13 Jun 2016 12:56:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/127053/african-potash-signs-fertiliser-distribution-mou-with-uganda-127053.html
<![CDATA[News - African Potash renews Lac Dinga licence ]]> http://www.proactiveinvestors.co.uk/companies/news/125867/african-potash-renews-lac-dinga-licence-125867.html African Potash (LON:AFPO) has renewed its  exploration licence for the Lac Dinga potash project in the Republic of Congo for two years, with the right to extend for an further two years after that.   

The fertiliser specialist added it had relinquished a portion of the concession area which overlapped the basin margin and doing that had its reduced its acreage to 555 sq km.

 The company has a 70% interest in La Société des Potasses et des Mines (SPM), which holds the exclusive exploration rights over the Lac Dinga project area.  

Chris Cleverly, executive chairman said Lac Dinga was in an area extremely prospective for potash, a key fertiliser component, and provided exploration exposure to complement its growing fertiliser trading operations. 

Shares rose 14% to 0.63p. 

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Thu, 12 May 2016 13:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/125867/african-potash-renews-lac-dinga-licence-125867.html
<![CDATA[News - African Potash still confident on fertiliser market despite deal delay ]]> http://www.proactiveinvestors.co.uk/companies/news/125116/african-potash-still-confident-on-fertiliser-market-despite-deal-delay-125116.html Fertiliser trader African Potash Limited (LON:AFPO) shares slumped in early deals as it revealed a lack of rain in southern Africa had affected certain deals.

But the firm said it was confident the fundamentals of the business remained attractive.

Indeed yesterday, it signed a participation agreement with Safyr Commodities, which has secured conditional sales agreements with one of Zambia's leading distributors, Nyiombo for 50,000 metric tonnes of of urea and fertiliser called NPK.

African Potash will be paid 25% of the net income received by Safyr, up to a maximum of US$4 million and delivery is contracted to take place by July 31 this year.

But  a previously announced Zambia deal to supply 20,000 metric tonnes of urea to a customer, under the COMESA deal, has been delayed and the firm said it understand this is due to the customer still awaiting confirmation of order from its customers.

The drought  has particularly affected the demand for urea in Zimbabwe and the agreement with private fertiliser producer Windmill announced in December has been terminated, the firm also revealed.

No further sales or liabilities are expected to arise following the termination of the agreement, AFPO said.

Chris Cleverly, executive chairman, said: "....despite the current market drivers in the fertiliser industry, we are confident that the fundamentals remain highly attractive, and building on our relationship with COMESA, we are well positioned to capitalise on the demographics which point towards the critical need for increased food production and fertiliser provision across sub-Saharan Africa."

Shares fell around 36% to 0.93p in early deals.

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Fri, 22 Apr 2016 08:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/125116/african-potash-still-confident-on-fertiliser-market-despite-deal-delay-125116.html
<![CDATA[News - African Potash Limited reassures on Zambia contract ]]> http://www.proactiveinvestors.co.uk/companies/news/124120/african-potash-limited-reassures-on-zambia-contract-124120.html Interims from African Potash Limited (LON:AFPO) chart a year of transformation for the AIM-listed group as it has morphed from a mining exploration and development firm to a supplier of fertiliser.

Crucial to this change has been a deal with African free trading group COMESA. It expects to supply 500,000 tonnes a year to member countries and signed a number of deals 2015.

The first revenues – a total of US$59,000 – came through in the six months to December 31. Analysts expect to see that figure increase significantly in the second half.

AFPO also provided an update on the delayed payment from a Zambian contract.

Chairman Chris Cleverly told investors: “I would like to comfort investors and state that I have confidence that African Potash will deliver and that we will receive the full amount originally reported. 

“The company is continuing to build a pipeline of opportunities on the auspices of the COMESA agreement; further news will be provided to shareholders in due course via the normal regulatory channels when appropriate.”

He described the hold up as symptomatic of the “teething troubles” encountered when a new business model is implemented at a rapid pace.

As is normal with a business at this formative stage of its development, AFPO posted a loss – the deficit was US$716,000 in the first half. As of December 31 it had cash of US$509,000.

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Tue, 29 Mar 2016 07:32:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124120/african-potash-limited-reassures-on-zambia-contract-124120.html
<![CDATA[News - African Potash said notification on Zambian payment will be made in due course ]]> http://www.proactiveinvestors.co.uk/companies/news/122304/african-potash-said-notification-on-zambian-payment-will-be-made-in-due-course-122304.html African Potash (LON:AFPO) said payment is still pending for a 20,000 metric tonne fertiliser sale made to a Zambian client.

“Notification will be made in due course as and when payment has been received,” investors were told.

The deal, worth just over US$10mln in gross revenues, was announced on January 6 and is the first done under landmark tie-up with the African free trade grouping COMESA.

AFPO has inked an agreement to sell 50,000 tonnes of fertiliser to an unnamed Zambian firm.

This was to be made up of 25,000 tonnes of NPK compound and 25,000 tonnes of urea

The sale price achieved was US$508 per tonne.

COMESA is a free trade union of 20 African countries and the plan is to supply 500,000 tonnes a year to member states.

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Tue, 09 Feb 2016 07:40:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/122304/african-potash-said-notification-on-zambian-payment-will-be-made-in-due-course-122304.html
<![CDATA[News - African Potash gets payment confirmation from Windmill ]]> http://www.proactiveinvestors.co.uk/companies/news/122013/african-potash-gets-payment-confirmation-from-windmill-122013.html African Potash (LON:AFPO) has received confirmation of payment from private fertiliser producer Windmill for 200 tonnes of the 3,000 tonne purchase of urea fertiliser stock.

As reported earlier this month, the overall  deal is expected to bring in net revenue of US$300,000.

The firm expects to receive further payments from Windmill in due course in respect of the remaining quantum of the order.

As reported earlier, separate to the joint venture announced with Beryl Holdings, AFPO has inked a contract with Beryl to buy 3,000 tonnes of urea fertiliser stock to sell to Windmill.

The firm does not have to pay Beryl until  it receives sales proceeds from Windmill, it had said.

AFPO shares eased on Monday 5.88% to stand at 1.60p.

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Mon, 01 Feb 2016 15:34:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/122013/african-potash-gets-payment-confirmation-from-windmill-122013.html
<![CDATA[News - African Potash talks trade with Ugandan president ]]> http://www.proactiveinvestors.co.uk/companies/news/121633/african-potash-talks-trade-with-ugandan-president-121633.html Fertiliser trader African Potash (LON:AFPO) said it recently met with the president of Uganda to discuss potential opportunities for co-operation.

Executive chairman Chris Cleverly and  director  Lord Peter Hain, former UK cabinet minister, met with His Excellency Yoweri Museveni and a delegation of officials in Kampala, to discuss potential opportunities to develop a fertiliser industry in Uganda to enhance the local agriculture sector. 

 Cleverly said: "As part of our strategy to aggressively expand our fertiliser business throughout the Common Market for Eastern and Southern Africa (COMESA) region, we continue to look at opportunities for developing a profitable and scalable fertiliser trading operation across Africa. 

"We were delighted to be invited by President Museveni to discuss potential opportunities for co-operating in the future with regards to investment in fertilisers."

The firm struck an agreement with COMESA, a free trade union for 20 African states, to supply at least 500,000 metric tonnes of fertilisers a year to off-takers identified and introduced by COMESA.

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Fri, 22 Jan 2016 08:13:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/121633/african-potash-talks-trade-with-ugandan-president-121633.html
<![CDATA[News - African Potash taps market to accelerate growth ]]> http://www.proactiveinvestors.co.uk/companies/news/121224/african-potash-taps-market-to-accelerate-growth-121224.html One of last summer's stock market stars, African Potash (LON:AFPO), is tapping the market for funds to spend on accelerating the expansion of trading operations.

The shares have quadrupled in the last six months to around 1.82p, and the company has satisfied demand for stock by proposing to place 48.53mln shares at 1.7p to raise £825,000.

Proceeds from the share placing will be used to improve local infrastructure to support the development of African Potash’s revenue generative trading operations.

The AIM-listed group has gone from the corporate equivalent of hibernation as potash mine developer to become a fertiliser trader, and the cash will support this strategy.

“Since turning our short-term attention to trading fertiliser and fertiliser constituents, African Potash has transformed itself from an early-stage exploration company into a business capable of capitalising on the immediate and critical need for fertiliser in sub-Saharan Africa, and in so doing, generating revenues and healthy margins – all within the space of six months,” said African Potash's executive chairman, Chris Cleverly.

“I believe our recent announcements detailing our first two fertiliser trades have demonstrated the potential financial rewards for moving into the fertiliser trading market, and it with this in mind that I announce today’s placing, which will support the expansion of African Potash’s trading operations. 

“The funds raised will be used specifically to establish infrastructure to enable the company to deliver further transactions with additional parties and in new territories. I look forward to providing further updates to shareholders in due course as we look to swiftly execute our expansion objectives and drive African Potash towards becoming an integrated supplier and trader of fertiliser and fertiliser constituents across Africa,” he added.

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Tue, 12 Jan 2016 12:46:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/121224/african-potash-taps-market-to-accelerate-growth-121224.html
<![CDATA[Media files - African Potash focused on trading, profits and building the business ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4528/african-potash-focused-on-trading-profits-and-building-the-business-4528.html Wed, 06 Jan 2016 15:28:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/4528/african-potash-focused-on-trading-profits-and-building-the-business-4528.html <![CDATA[News - African Potash set for US$10.16mln from first trade ]]> http://www.proactiveinvestors.co.uk/companies/news/120999/african-potash-set-for-us1016mln-from-first-trade-120999.html African Potash (LON:AFPO) was AIM's top riser as it revealed it had sent the first 20,000 tonnes of fertiliser under a landmark trade - its first from the COMESA agreement, which will provide it with US$10.16mln of gross revenue.

Shares added over 32% to 2.33p in London in early deals.

As revealed in October, the firm has inked an agreement to sell 50,000 tonnes of fertiliser to an unnamed Zambian firm.

This was to be made up of 25,000 tonnes of NPK compound and 25,000 tonnes of urea, of which 20,000 tonnes has been today satisfied.

The stock was delivered to the port of Beira in Mozambique and arrival to the customer in Lusaka, Zambia, is expected within 3-5 days.

African Potash's executive chairman Chris Cleverly told investors:  We are now starting to gain real momentum as our strategy to generate immediate cash flow from trading begins to reshape our company and its potential future financial performance. 

"Today's trade alone will generate a gross revenue of $10,160,000 for African Potash, achieving a margin within the previously announced range, clearly highlighting the considerable value of participating in the fertiliser trading market.

"I believe we have still only begun to scratch the surface of the potentially enormous market for fertiliser in Africa."

The sale price achieved was US$508 per tonne.

COMESA is a free trade union of 20 African countries and the plan is to supply 500,000 tonnes a year initially under the deal.

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Wed, 06 Jan 2016 07:37:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/120999/african-potash-set-for-us1016mln-from-first-trade-120999.html
<![CDATA[News - African Potash makes significant leap with latest deal ]]> http://www.proactiveinvestors.co.uk/companies/news/120838/african-potash-makes-significant-leap-with-latest-deal-120838.html African Potash’s (LON:AFPO) strategy of generating immediate cash flow from its trading operations is beginning to bear fruit.

That, at least, was the verdict of the firm’s chairman, Chris Cleverly, following the acquisition of the trading, logistics and financing operations of a firm called Beryl Holdings.

The transaction follows on from a joint-venture deal struck on December 1.

The AIM-listed group has gone from the corporate equivalent of hibernation as potash mine developer to become a fertiliser trader with an agreement with COMESA, a free trade union of 20 African countries. The plan is to supply 500,000 tonnes a year initially.

"I am delighted to provide this update on our fertiliser trading operations as our strategy to generate immediate cash flow from trading begins to bear fruit for the company," Cleverly told investors.

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Tue, 29 Dec 2015 07:53:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/120838/african-potash-makes-significant-leap-with-latest-deal-120838.html
<![CDATA[News - African Potash invests in Blenheim Natural ]]> http://www.proactiveinvestors.co.uk/companies/news/120529/african-potash-invests-in-blenheim-natural-120529.html Chris Cleverly, African Potash’s (LON:AFPO) executive chairman, has joined the board of Blenheim Natural Resources (LON:BNR) as a non-executive.

His appointment follows African Potash subscribing for 8.75mln shares in a placing at 0.8p that raised £640,000 for Blenheim.

Cleverly said: "African Potash is delighted to invest in Blenheim.

“Africa remains one of the fastest growing regions in the world and according to the African Development Bank, the size of Africa's food and agribusiness will be 1 trillion dollars by 2030 and foreign direct investment into this sector will increase to US$45bn by 2020.  

“We intend to be at the forefront of this trend and the relationship between African Potash and Blenheim is a positive step towards identifying potential opportunities."

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Wed, 16 Dec 2015 10:05:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/120529/african-potash-invests-in-blenheim-natural-120529.html
<![CDATA[News - African Potash shares surge on fertiliser trade deal ]]> http://www.proactiveinvestors.co.uk/companies/news/120371/african-potash-shares-surge-on-fertiliser-trade-deal-120371.html African Potash (LON:AFPO) shares surged in afternoon deals as it struck a first trade deal  with Windmill - a private fertiliser producer in Southern Africa - expected to bring in net revenue of US$300,000.

"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," said executive chairman Chris Cleverly.

"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."

Separate to the joint venture announced earlier this month with Beryl Holdings, AFPO has inked a contract with Beryl to buy 3,000 tonnes of urea fertiliser stock to sell to Windmill.

The firm does not have to pay Beryl until  it receives sales proceeds from Windmill.

George Rundogo, chief executive at 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."

On December 1, African Potash said it was teaming up with South African investment firm Beryl Holdings in a deal that will expand and enhance its fertiliser operations.

Under the terms, Beryl’s main fertiliser activities will be wrapped into a jointly-owned Mauritian company.

The joint venture (JV) will receive existing contracts as well as Beryl’s stake in Bollore Logistics Africa, which AFPO expects to “enhance the value of this partnership”.

AFPO shares today added 18.31% to stand at 2.10p.

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Fri, 11 Dec 2015 14:58:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/120371/african-potash-shares-surge-on-fertiliser-trade-deal-120371.html
<![CDATA[News - African Potash secures bridge facility ]]> http://www.proactiveinvestors.co.uk/companies/news/119928/african-potash-secures-bridge-facility-119928.html African Potash (LON:AFPO) has agreed a £750,000 bridge facility that will meet its short-term working capital needs.

The lender is Katrina Clayton, the wife of chief financial officer, Neil Clayton. The company will pay 1.5% a month on the balance, and the loan must be repaid in full by September 2016.

African Potash, which has signed a number of deals to sell fertiliser to customers in Africa, hopes it will soon be generating enough cash to meet its overheads. However if it isn’t at that stage in three months it may have to look for further funds.

Chairman Chris Cleverly said: "This bridge funding enables us to continue to make progress in the transformation of our business and illustrates the faith and commitment of senior management and their families to this project, as we remain focused on the roll-out of our integrated fertiliser operations across Africa. 

“With funding in place to cover our short term requirements we look forward to finalising our trade finance facility, which we continue to negotiate in order to secure up to US$50m of funding to support the trading strategy.  Further details will be provided on this as and when appropriate."

 

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Wed, 02 Dec 2015 07:24:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/119928/african-potash-secures-bridge-facility-119928.html
<![CDATA[Media files - African Potash Boss: we are in with the big boys ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4428/african-potash-boss-we-are-in-with-the-big-boys-4428.html Tue, 01 Dec 2015 07:49:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/4428/african-potash-boss-we-are-in-with-the-big-boys-4428.html <![CDATA[News - African Potash JV a 'significant' opportunity ]]> http://www.proactiveinvestors.co.uk/companies/news/119864/african-potash-jv-a-significant-opportunity-119864.html African Potash (LON:AFPO) is teaming up with South African investment firm Beryl Holdings in a deal that will expand and enhance its fertiliser operations.

Under the terms of the agreement, Beryl’s main fertiliser activities will be wrapped into a jointly-owned Mauritian company.

The joint venture (JV) will receive existing contracts as well as Beryl’s stake in Bollore Logistics Africa, which AFPO expects to “enhance the value of this partnership”.

The terms of the deal are reasonably complex, but the upfront costs are minimal.

If in the first or second full year of the deal the JV achieves underlying profit (EBITDA) of US$4mln or more then Beryl will be due a payment of up to US$12.1mln (£8mln), to be paid in shares at 2.61p each.

Beryl won’t receive more than 29.9% of the enlarged African Potash.

The AIM-listed group has gone from the corporate equivalent of hibernation as potash mine developer to become a fertiliser trader with an agreement with COMESA, a free trade union of 20 African countries. The plan is to supply 500,000 tonnes a year initially.

Chris Cleverly, AFPO’s chairman, told investors: "This transaction will strengthen and expedite our vision to become an integrated fertiliser operator within Africa.  

“With Beryl Holdings' fertiliser division, we now have an African business to manage the significant growth opportunity which we have identified through implementation of our COMESA trading agreement.  

“Growth by acquisition as well as organic development is part of our strategy for growth, thereby enhancing shareholder value."

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Tue, 01 Dec 2015 07:37:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/119864/african-potash-jv-a-significant-opportunity-119864.html
<![CDATA[News - African Potash adds Lord Peter Hain to board ]]> http://www.proactiveinvestors.co.uk/companies/news/116738/african-potash-adds-lord-peter-hain-to-board-116738.html African Potash (LON:AFPO) has added its fourth new board member in the last two weeks.

Lord Peter Hain, 65, will join the fertiliser specialist as a non-executive director from December.

It follows the appointment of former Conservative MP Mark Simmonds earlier this week, and Declan O'Brien and Mark Simmonds last week.

Hain was a cabinet minister for seven years and a government minister for five years, and held positions including Foreign Minister, Europe Minister and Energy Minister.

He is due to become a Member of the House of Lords in November 2015. 

Chris Cleverly, executive chairman, said: “His [Hain’s] significant political and corporate experience will provide invaluable support to African Potash”.

Jean-Pierre Conrad is stepping down from the board in order to concentrate on his other corporate interests, the company said.

It comes as African Potash announced a deal with Ecobank Malawi to guarantee payments from off-takers yesterday.

The company is sourcing, delivering and financing fertiliser as part of the agreement to supply at least 500,000 tonnes of fertiliser a year to groups identified and introduced by African free trade group Comesa.

It means AFPO’s investment banking advisor Loita Capital Partners will provide finance, through letters of credit, for the off-takers, so the firm will get paid for its fertiliser.

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Wed, 28 Oct 2015 07:37:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/116738/african-potash-adds-lord-peter-hain-to-board-116738.html
<![CDATA[News - African Potash shares skyrocket on Ecobank Malawi deal ]]> http://www.proactiveinvestors.co.uk/companies/news/116721/african-potash-shares-skyrocket-on-ecobank-malawi-deal-116721.html African Potash (LON:AFPO) shares surged over 26% as its fertiliser trading ambitions were further boosted after it struck a deal with Ecobank Malawi.

The deal means in effect, payments from offtakers to the company will be guaranteed.

As earlier reported, African Potash is to source, deliver and finance fertiliser as part of the agreement to supply at least 500,000 tonnes of fertiliser  year to groups identified and introduced by African free trade group Comesa.

In the latest agreement, AFPO's investment banking advisor Loita Capital Partners has arranged an off-taker finance facility with Ecobank Malawi.

It means the bank can provide finance by way of letters of credit for the offtakers, so the firm will be paid.

"Any letters of credit granted by the bank will in effect provide a guarantee of payments to African Potash, thereby enabling African Potash to finalise its own trade finance facilities, which are required to complete its recently announced fertiliser agreements," the company said in a regulatory statement.

African Potash executive chairman Chris Cleverly told investors: "We are delighted, that with the guidance of our investment banker Loita, we have made these arrangements for our off-take partners.

"This represents achievement of a further milestone in the development of our fertiliser trading operations.  We are grateful for this indication of support from Ecobank Malawi, which we hope will go a long way in assisting us in completing the roll out of our fertiliser trading operations."

Shares surged 26.44% to 2.78p.

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Tue, 27 Oct 2015 15:36:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/116721/african-potash-shares-skyrocket-on-ecobank-malawi-deal-116721.html
<![CDATA[News - African Potash continues to bolster board ]]> http://www.proactiveinvestors.co.uk/companies/news/116651/african-potash-continues-to-bolster-board-116651.html African Potash (LON:AFPO), the exploration company focused on sub-Saharan potash assets, continues to bolster its board - with the appointment of another Africa specialist.

Former Conservative MP Mark Simmonds becomes a director as of November 10.

He served as the Member of Parliament for Boston and Skegness in Lincolnshire, from 2001-2015 and most recently he held the ministerial position of Foreign and Commonwealth Minister for Africa and as such he has a deep knowledge of the business and political landscape across the continent.

Last week, the firm said it  was hiring Declan O'Brien as a director. He has over 20 years' senior management experience within the financial sector, particularly relating to the African commodity space.

On October 19, it said it was hiring experienced Elias Pungong to its board as a non-executive director.

Ernst & Young veteran Pungong has advised governments, multi-nationals and private sector institutions across Africa on strategy, operation, and general management issues.

He will support African Potash in its growth strategy as it develops the Lac Dinga potash project in the Republic of Congo, the group said.

African Potash shares added 6.49% to 2.05p.

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Mon, 26 Oct 2015 13:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/116651/african-potash-continues-to-bolster-board-116651.html
<![CDATA[News - African Potash strengthens board with Ernst & Young senior partner ]]> http://www.proactiveinvestors.co.uk/companies/news/116347/african-potash-strengthens-board-with-ernst-young-senior-partner-116347.html African Potash (LON:AFPO), the exploration company focused on sub-Saharan potash assets, has added vastly experienced Elias Pungong to its board as a non-executive director. 

Ernst & Young veteran Pungong has advised governments, multi-nationals and private sector institutions across Africa on strategy, operation, and general management issues.

He will support African Potash in its growth strategy as it develops the Lac Dinga potash project in the Republic of Congo.

“Elias has a proven and acute understanding of Francophone Africa, and in particular resource development in the region. He has a first class network and will be invaluable in orchestrating the development of Lac Dinga and compatible resources, as we look to build a vertically integrated fertiliser company,” said Chris Cleverly, executive chairman of African Potash.

Pungong will slip into the seat vacated by Ed Marlow, who is stepping down from the African Potash board.

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Mon, 19 Oct 2015 08:44:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/116347/african-potash-strengthens-board-with-ernst-young-senior-partner-116347.html
<![CDATA[News - African Potash ready to make its first shipment ]]> http://www.proactiveinvestors.co.uk/companies/news/111328/african-potash-ready-to-make-its-first-shipment-111328.html African Potash (LON:AFPO) has signed a formal agreement to sell 50,000 tonnes of fertiliser to an unnamed Zambian firm, ratifying a framework deal announced earlier this week.

Half the shipment will be an NPK product, while the remainder will urea, which should be delivered to meet seasonal demand in October and November.

AFPO has already revealed it will make US$500 a tonne from the sale and that its pre-tax margin on the sale will be 6%.

It also said it is continuing to negotiate a trade finance facility of up to US$50mln.

Chairman Chris Cleverly said, "Securing this sales contract means that we are now very close to consummating our inaugural fertiliser trade. 

“This initial transaction is important as it acts as a "proof of concept" of our trading facility, in association with and with the support of COMESA/ACTESA.”

Comesa a free trade union of twenty African countries and currently AFPO is the only company that has a deal to supply this potentially rich agricultural area with fertiliser.

The company is aiming to ship around 500,000 tonnes initially. This is its first formal deal, though it has outline agreements for a further 350,000 tonnes.

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Thu, 01 Oct 2015 07:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/111328/african-potash-ready-to-make-its-first-shipment-111328.html
<![CDATA[News - UPDATE - African Potash agrees fertiliser contract for DRC ]]> http://www.proactiveinvestors.co.uk/companies/news/111172/update-african-potash-agrees-fertiliser-contract-for-drc-111172.html -- adds supply contract details --

African Potash (LON:AFPO) has teed up a fourth fertiliser contract under its agreement with the African co-operative group Comesa and secured a source of supply for its first deal.

The latest memorandum of understanding is for 150,000Mt of fertiliser for farmers in the Democratic Republic of Congo. 

African Potash will source, deliver and finance the fertiliser as part of the agreement to supply at least 500,000MT of fertiliser to groups identified and introduced by African free trade group Comesa. 

Chris Cleverly, African Potash’s executive chairman, said: "No region of the world has been able to expand agricultural growth rates, and thus tackle hunger, without increasing fertiliser use.

“Despite economic growth rates of 8.9% in 2014, according to World Bank figures the Democratic Republic of Congo currently uses only 1kg of fertiliser per hectare of arable land whereas India uses 16kg per hectare and the United Kingdom uses 234kg per hectare."

African Potash’s three previous deals amounted to 250,000 tonnes of fertiliser for distributors in Zambia, Malawi and Zimbabwe.

Today, the company also announced it had secured a supply of 50,000 tonnes of fertiliser from South African supplier Cudolog to meet the contract for Zambia, the first it signed under the Comesa umbrella.

The supply deal was agreed last week at the East and Southern Africa Fertiliser Trade Platform (ESAF) annual conference and fertiliser Expo held in Lusaka, Zambia, an event co-hosted by African Potash and Comesa.

Cudolog will deliver 50,000 metric tonnes of fertiliser (25,000Mt of NPK D Compound and 25,000Mt UREA) to chosen port destinations for African Potash to transport.

Cleverly added: "Having established a sale price of US$500 per Mt in respect of the 50,000 Mt of fertiliser product to be supplied in connection with our first trading MOU, we are now pleased to have concluded this agreement for fertiliser supply, which provides us with access to the required quantity and quality of fertilisers, at competitive pricing structures.“

Negotiations are still ongoing to establish a trade finance facility of up to US$50m and nothing will be bought until this has been finalised.

Comesa, the Common Market for Eastern and Southern Africa, is a free trade union of twenty African countries.

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Mon, 28 Sep 2015 08:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/111172/update-african-potash-agrees-fertiliser-contract-for-drc-111172.html
<![CDATA[News - African Potash agrees pricing for one of supply deals ]]> http://www.proactiveinvestors.co.uk/companies/news/111125/african-potash-agrees-pricing-for-one-of-supply-deals-111125.html Fri, 25 Sep 2015 08:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/111125/african-potash-agrees-pricing-for-one-of-supply-deals-111125.html <![CDATA[News - African Potash seeks US$50mln loan for fertiliser push ]]> http://www.proactiveinvestors.co.uk/companies/news/110724/african-potash-seeks-us50mln-loan-for-fertiliser-push-110724.html African Potash (LON:AFPO) has appointed Loita Capital as the lead arranger for a US$50mln finance facility to underpin its trading agreement with Comesa/Actesa.

Comesa is a free trade union of twenty African countries with Actesa its business agency.

In August, African Potash agreed to supply 500,000 tons of fertiliser a year to farmers within the Comesa area.  

Eventually, the plan is for a Comesa umbrella fertiliser financing facility of up to US$500mln. 

Chris Cleverly, African Potash’s executive chairman, said Loita’s appointment was another major landmark.

“As an African-focused investment bank, Loita will support us in the conclusion of a US$50 million finance facility. 

“Having already secured three strategic orders for the supply of fertiliser in Malawi, Zambia and Zimbabwe, and with further trade opportunities identified, the debt financing funds provided will enable us to fulfil the obligations of our current contracts whilst also supporting our extremely active growth strategy." 

N Justin Chinyanta, Loita's chief executive, added: "Fertiliser is responsible for 40%-60% of the world's food supply - it is also a multibillion dollar global business that Africa must have a stake in. “

Shares in African Potash have climbed more than 1000% since the start of August when the terms of the Comesa deal were revealed and they added another 12% today to 32p.

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Fri, 11 Sep 2015 11:31:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110724/african-potash-seeks-us50mln-loan-for-fertiliser-push-110724.html
<![CDATA[News - African Potash and Jubilee Platinum top AIM investor lists ]]> http://www.proactiveinvestors.co.uk/companies/news/110508/african-potash-and-jubilee-platinum-top-aim-investor-lists-110508.html Interest among retail investors in buying stakes in small-cap companies listed on AIM is rising, according to official data.

Individual investors owned 30.6% of AIM shares at the end of 2014, compared to 9.5% of FTSE 100 shares, figures from the Office for National Statistics (ONS) showed.

The Share Centre, which offers a broking service to private investors, said a fifth of its clients who hold ISA tax-free accounts had invested on AIM in the last year.

The top ten AIM stocks traded at the Share Centre included, in order from one to 10, African Potash (LON:AFPO), Jubilee Platinum (LON:JLP), Rare Earth Minerals (LON:REM), Marechale Capital (LON:MAC), Share (LON:SHRE), Quindell (LON:QPP), Optimal Payments (LON:OPAY), UK Oil & Gas (LON:UKOG), Telford Homes (LON:TEF) and Utilitywise (LON:UTW).

The Share Centre said the most popular sectors in which shares were bought on AIM were mining, oil & gas and general finance.

The centre's customer experience director Darren Cornish said consumer confidence and individual investment were on the up.

Cornish said: “It's great to see these UK investors owning nearly a third of AIM listed companies.

"AIM companies are key to the UK economy and personal investors are clearly keen to invest in them."

At the end of 2014, shares in quoted UK domiciled companies were valued at a total of £1.7 trillion, the ONS data showed.

UK individuals owned an estimated 12% of quoted UK shares by value, up from an historic low of 10% in 2012.

Rest-of-the-world investors held significantly more shares than any other sector, owning 54% of the market compared to 31% in 1998.

Unit trusts held 9%, slightly down from the 2012 level but still much higher than in 1998, when they only made up 2%.

Other financial institutions held 7%, similar to 2012 but lower than the 12% they owned in 2010.

Insurance companies held 6% and pension funds 3%, continuing the downward trends in those sectors in the last few years.

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Thu, 03 Sep 2015 12:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110508/african-potash-and-jubilee-platinum-top-aim-investor-lists-110508.html
<![CDATA[News - African Potash bags third fertiliser deal ]]> http://www.proactiveinvestors.co.uk/companies/news/110491/african-potash-bags-third-fertiliser-deal-110491.html African Potash (LON:AFPO) has unveiled its third supply agreement on the African continent in a matter of days.

The fertiliser specialist has signed a memorandum of understanding (MOU) with a Zimbabwean company to supply 150,000 metric tonnes of fertiliser annually.

First deliveries are anticipated for later this year with supplies to be sourced from Africa, India and China.

The MOU follows similar agreements for 50,000 tonnes apiece signed with companies in Zambia and Malawi during the past week.

In August, African Potash signed a deal with the Common Market for Eastern and Southern Africa Comesa to supply 500,000 tonnes of fertiliser to farmers’ groups across various African countries.

The three MOUs are part of this deal and mean arrangements are now in place for half of the amount agreed with Comesa.

African Potash said previously it will earn net revenues of between 5-15% on each metric tonne supplied.

Chris Cleverly, executive chairman, said, "African Potash continues to deliver upon its strategy of becoming a significant, vertically integrated fertiliser provider in Africa.

"African farms are only performing at 40% of their potential and simple measures such as quality, affordable fertiliser can triple productivity. “ 

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Thu, 03 Sep 2015 08:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110491/african-potash-bags-third-fertiliser-deal-110491.html
<![CDATA[News - African Potash scores with second deal in a week ]]> http://www.proactiveinvestors.co.uk/companies/news/110404/african-potash-scores-with-second-deal-in-a-week-110404.html ---ADDS SHARE PRICE & FURTHER BACKGROUND---

African Potash (LON:AFPO) has inked its second deal to supply fertiliser to a country in the Common Market for Eastern and Southern Africa, known as COMESA for short.

This time the tentative agreement, known as a memorandum of understanding, is with an unnamed Malawian firm, which will take 50,000 metric tonnes a year over an initial three years.

Last week the AIM-listed trader tied up a deal for the same quantity with a Zambian fertiliser supply group.

Both help towards the larger goal of having contracts worth 500,000 tonnes.

“Additional agreements are currently being sought," said chairman Chris Cleverly.

"There is a strong demand for fertiliser in landlocked Malawi. There is a recognition in-country that its use increases productivity, reduces deforestation, increases nutritional levels, which positively effects serious issues such child mortality rates and reduces the reliance on expensive imported food,” he added. 

The company, which also owns 702 square-kilometre Lac Dinga potash project in the Republic of Congo, plans to create a vertically integrated operator that has the mining, processing and marketing skills to tap into a region that buys in an estimated 10mln tonnes of fertiliser a year.

Being vertically integrated means it can exert control over all parts of the supply chain.

“In Africa you are wise to have many strings to your bow,” chairman Cleverly said in a recent interview with Proactive Investors.

He revealed recently there are two deals he is looking at currently “involved in plant and industry”, while there is a phosphate acquisition he’d also like to make.

The company's Lac Dinga project won’t be ignored and the chairman hopes to continue to “stimulate” the development of the asset with some of the cash that flows through from sales to COMESA.

The shares, up 590% in the past month, added a further 21% in early trade and were changing hands for 2.26p each, valuing the business at £17mln.

African Potash is expected to source fertiliser from Africa, India and China.

The financial commitments will be minimal, with the AIM-listed firm providing “credit support” to certain partners.

This means the estimated £600,000 the firm has on its balance sheet should be enough to see across the “goal line” to cash generation.

He also pointed to the development of Dangote Group, run by Aliko Dangote, Africa’s richest man, as revealing just where Africa’s smart money is headed.

Having started out in cement and then focused on sugar, Dangote is staking its future on the nascent agricultural sector in Africa and fertiliser in particular. Others are following in its wake.

“We are not looking to be taken over in the future; we are trying to create a business,” Cleverly said.

“But I do know there will be a land grab for assets and relationships that we are talking about.”

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Tue, 01 Sep 2015 07:54:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110404/african-potash-scores-with-second-deal-in-a-week-110404.html
<![CDATA[News - African Potash shares soar as it strikes first supply deal ]]> http://www.proactiveinvestors.co.uk/companies/news/110210/african-potash-shares-soar-as-it-strikes-first-supply-deal-110210.html African Potash (LON:AFPO) shares skyrocketed on Monday after it announced its first supply deal following the landmark agreement struck earlier this month with Comesa -  the free trade union of 20 African countries.

The company has now entered a memorandum of understanding with a Zambian fertiliser supply group for more than 50,000 tonnes of fertiliser.

The first delivery is earmarked for next month (September).

Chris Cleverly, executive chairman of African Potash, told investors it furthered the group'/s ambition to become a vertically integrated African focused fertiliser business. 

"It is also a significant leap for agriculture in the COMESA region. The directors assess 65 per cent of Africa's labour force is engaged in agriculture, 60 per cent of the world's uncultivated land is also in Africa, and with a fast growing global population it is vital that the continent plays a leading part in the global food chain.  

"There is a need for a structured commercial framework for fertiliser.  As an example, the average Ugandan farmer pays twice as much for a bag of fertiliser than his European or American counterpart.  It is both our opportunity and our duty to do better than that." 

George James Magai, director of trade and markets of COMESA/ACTESA, added:  "This agreement is the beginning of Africa's green revolution and marks the arrival of African Potash's vertical market on the continent."

On August 4, African Potash struck a preliminary distribution agreement with Comesa to supply 500,000 tonnes of fertiliser a year.

Under the three year deal, which was brokered over several months, African Potash is teaming up with Mask Africa Crowd Farm Fund to supply farmers and groups identified by Comesa.

The firm will continue to develop its Lake Dinga potash project in the Republic of Congo but the distribution deal with Comesa potentially gives the company near term revenue and a strong future customer base.

It is also continuing to explore potential entry points in fertiliser production, manufacture and distribution.

Shares added 57.14% to 1.65p.

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Mon, 24 Aug 2015 09:44:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110210/african-potash-shares-soar-as-it-strikes-first-supply-deal-110210.html
<![CDATA[News - African Potash denies it's considering share placement ]]> http://www.proactiveinvestors.co.uk/companies/news/110090/african-potash-denies-it-s-considering-share-placement-110090.html African Potash (LON:AFPO) has told investors that a newspaper report referring to an imminent share placing was “speculative and unfounded”.

The company noted an article published in the Daily Mail which referred to ‘an impending placement at a significant discount to the current share price’.

“No such placements are being considered,” African Potash said in a stock market statement.

“The company continues to focus on the progress being made in its landmark trading agreement with the Common Market for Eastern and Southern Africa (COMESA), with a view to creating a vertical platform for mining, production and distribution of fertiliser in the COMESA States and beyond.”

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Wed, 19 Aug 2015 10:09:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110090/african-potash-denies-it-s-considering-share-placement-110090.html
<![CDATA[News - African Potash shares continue their wild ride ]]> http://www.proactiveinvestors.co.uk/companies/news/110048/african-potash-shares-continue-their-wild-ride-110048.html Shares in African Potash (LON:AFPO) have doubled this year and were on the move again on Tuesday Morning, prompting a statement from the company.

The sub-Saharan potash assets owner reminded the market it is negotiating with third parties to secure sale orders in relation to the trading memorandum of understanding (MOU) signed with the Common market for Eastern and Southern Africa and the Mask Africa Crowd Farm Fund Limited.

The trading MOU is part of African Potash’s strategy to create a vertical platform for the mining, production and distribution of fertiliser, focused on the Eastern and Southern Africa region and beyond. 

At the same time, as announced on 4 August 2015, the company is also continuing to develop strategic opportunities to add additional complementary industry divisions, it reminded investors.

The shares, which closed at 1.73p last night, hit 2.14p at one point this morning but have also fallen as low as 1.55p.

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Tue, 18 Aug 2015 10:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110048/african-potash-shares-continue-their-wild-ride-110048.html
<![CDATA[News - African Potash deal just the start of its transformation ]]> http://www.proactiveinvestors.co.uk/companies/news/109696/african-potash-deal-just-the-start-of-its-transformation-109696.html There is a significant change occurring at African Potash (LON:AFPO) that is only partly apparent from the recent update it provided the market.

But according to executive chairman Chris Cleverly, the transformation is expected to occur quickly and it should be immediately value enhancing.

Shares in the AIM-listed mining junior, which owns the 702 square-kilometre Lac Dinga potash project in the Republic of Congo, rose over 40% at one stage on Tuesday as it signalled its move into commodity trading.

It did so by signing a preliminary distribution agreement with Comesa, a free trade union of twenty African countries, to supply 500,000 tonnes of fertiliser a year.

Success will shift the firm’s focus from the depressed mining sector to the booming agriculture industry in Africa.

Not just that, the first contracts, expected to be signed and sealed in the next few months, should render the business cash generative.

At present DAP fertiliser, which contains diammonium phosphate, is trading at a price of around US$470/MT (tonne) and Urea at approximately US$290/MT.

At these prices, it expects be able to generate net revenues of 5-15%/Mt on each transaction under the trading memorandum of understanding.

“What I wanted to do was create a revenue situation straight away,” said chairman Cleverly, who joined African Potash in March.

“That really is what the Comesa deal is all about.”

With the agreement in place, the longer-term plan is to create a vertically integrated operator that has the mining, processing and marketing skills to tap into a region that buys in an estimated 10mln tonnes of fertiliser a year.

Being vertically integrated means it can exert control over all parts of the supply chain.

“In Africa you are wise to have many strings to your bow,” chairman Cleverly added.

He reveals there are two deals he is looking at currently “involved in plant and industry”, while there is a phosphate acquisition he’d also like to make.

The Lac Dinga project won’t be ignored and the chairman hopes to continue to “stimulate” the development of the asset with some of the cash that flows through from sales to Comesa.

As for the marketing agreement itself, it has been under negotiation for several months and will see African Potash (AP) source fertiliser from Africa, India and China.

The financial commitments will be minimal, with the AIM-listed firm providing “credit support” to certain partners.

This means the estimated £600,000 the firm has on its balance sheet should be enough to see across the “goal line” to cash generation.

“We are fine for now,” he said. “What I am hoping to do with the trading I am hoping will see us through.

“We have lots of people who want to put money in, but it would be dilutive.”

Cleverly said that the initial agreement could just be the start of the relationship between AP and Comesa.

“We hope to push past the 500,000 (tonnes). There are millions of tonnes of fertiliser each a year bought or sold in the region," said the African Potash boss. 

“We are the first to do this. It is hard to secure deals of this kind, so there are barriers to entry.”

Cleverly points to the development of Dangote Group, run by Aliko Dangote, Africa’s richest man, as revealing just where Africa’s smart money is headed.

Having started out in cement and then focused on sugar, Dangote is staking its future on the nascent agricultural sector in Africa and fertiliser in particular. Others are following in its wake.

“We are not looking to be taken over in the future; we are trying to create a business,” Cleverly said.

“But I do know there will be a land grab for assets and relationships that we are talking about.”

The shares, which closed 30% higher on Tuesday, were up 47% in a busy session Wednesday – suggesting investors are starting to warm to the deal and Cleverly’s plans.

He pointed said: “We are a £2.5mln company. We don’t have to do a lot of deals for them to be more than incremental to the size of business we are.

“The key to the story is people have to recognise the macro angle of this stock.”

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Wed, 05 Aug 2015 12:07:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/109696/african-potash-deal-just-the-start-of-its-transformation-109696.html
<![CDATA[Media files - African Potash chair: Comesa deal will give shareholders a revenue business ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4027/african-potash-chair-comesa-deal-will-give-shareholders-a-revenue-business-4027.html Tue, 04 Aug 2015 14:50:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/4027/african-potash-chair-comesa-deal-will-give-shareholders-a-revenue-business-4027.html <![CDATA[News - African Potash shares soar after it inks landmark fertiliser deal ]]> http://www.proactiveinvestors.co.uk/companies/news/109637/african-potash-shares-soar-after-it-inks-landmark-fertiliser-deal-109637.html ---ADDS CHIEF EXECUTIVE COMMENTS AND SHARE PRICE---

Shares in African Potash (LON:AFPO) soared 42% after it said it had struck a preliminary distribution agreement with Comesa, a free trade union of twenty African countries, to supply 500,000 tonnes of fertiliser a year.

Under the three year deal, which was brokered over several months, African Potash is teaming up with Mask Africa Crowd Farm Fund to supply farmers and groups identified by Comesa.

It is the first agreement of this nature ever signed by the union and as well as a significant milestone for the region’s fertiliser industry it gives the company first-mover advantage.

So far, African Potash has focused on developing its Lake Dinga potash project in the Republic of Congo.

This will continue, it said, but the distribution deal with Comesa potentially gives it near term revenue and a strong future customer base.

African Potash said at present DAP fertiliser, which contains diammonium phosphate, is trading at a price of approximately US$470/MT (tonne) and Urea at approximately US$290/MT.

At these prices, it expects be able to generate net revenues of 5-15%/Mt on each transaction under the trading memorandum of understanding.

On this basis, the first trades should render the African Potash cash generative once the first deal is landed.

Chris Cleverly, African Potash’s executive chairman, said: "The signing of this trading agreement with Comesa is a significant step as we seek to transform the company into a vertically integrated African fertiliser business.

“By adding a credible trading operation to our existing exploration operations we have demonstrated our commitment to this project.”

The shares, down almost 60% in the year to date, rose 0.127p or 41.6%, % to 3.75p.

CEO Cleverly, speaking to Proactive Investors, said the first contracts could be signed and sealed in the next two months. Also, there is the potential to build upon the initial agreement, he reckons.

“We hope to push past the 500,000 (tonnes). There are millions of tonnes of fertiliser each a year bought or sold in the region," said the African Potash boss.  

“We are the first to do this. It is hard to secure deals of this kind, so there are barriers to entry.”

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Tue, 04 Aug 2015 07:44:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/109637/african-potash-shares-soar-after-it-inks-landmark-fertiliser-deal-109637.html