Proactive Investors - Run By Investors For Investors

African Potash taps market to accelerate growth

The shares have quadrupled in the last six months.
African Potash taps market to accelerate growth
African Potash has transformed itself from an early-stage exploration company to become a fertiliser trader

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.

Why Invest In African Potash Ltd? Read More Here

Register here to be notified of future AFPO Company articles
View full AFPO profile View Profile

African Potash Ltd Timeline

Related Articles

African Potash making progress with second deal in less than a month
August 02 2016
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.
February 23 2017
Chris Tziolis discussed with investors the potential of the Ammaroo Project.
October 26 2016
The pact with a subsidiary Gina Rinehart’s Hancock Prospecting will form an important plank of the overall funding package for the AIM-listed group’s North Yorkshire Polyhalite Project.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use