Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

African Potash inks farm-out deal with AAX on Lac Dinga 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.
mine truck
AAX commits to certain spending milestones for the project.

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."

View full BLCC profile View Profile

Block Commodities Timeline

Related Articles

Woodsmith mine
April 01 2018
Tracking the readership of Sirius stories, we have seen their popularity wane as retail investors have been replaced by institutions that bought into November 2016’s US$495mln placing and open offer of new Sirius stock

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors 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