4th Aug 2015 08:37
LONDON (Alliance News) - African Potash Ltd on Tuesday said it has signed a memorandum of understanding with the Common Market for Eastern and Southern Africa (COMESA) and the Mask Africa Crowd Farm Fund Ltd with a view to creating a production and distribution platform for fertiliser in Eastern and Southern Africa.
The deal is the first of its kind to have been signed by COMESA, African Potash said. Under the terms, the company will enter a three-year fertiliser trading deal with COMESA to supply at least 500,000 metric tonnes of fertilisers on an annual basis to off-take partners identified and introduced by COMESA.
No financial details on the deal were disclosed.
"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, with the added benefit of generating short term cash-flows from first-class customers who have been identified and introduced by COMESA," said African Potash Executive Chairman Chris Cleverly.
Shares in African Potash were up 3.3% to 0.315 pence on the news.
By Sam Unsted; [email protected]; @SamUAtAlliance
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