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."