1st Sep 2015 07:21
LONDON (Alliance News) - African Potash Ltd Tuesday said it has entered into a memorandum of understanding to supply over 50,000 metric tonnes of fertiliser to a Malawian company under its previously signed agreement to build a production and distribution platform for fertiliser in Africa.
African Potash shares were up 17% to 2.20 pence per share early Tuesday morning.
African Potash said it will deliver its first batch of fertiliser to the unnamed company in autumn 2015, subject to a definitive agreement being signed beforehand.
The new deal is part of the company's agreement with the Common Market for Eastern and Southern Africa (COMESA) and the Mask Africa Crowd Farm Fund Ltd to create a production and distribution platform for fertiliser in Eastern and Southern Africa in August.
Under that agreement with COMESA, African Potash signed its first MoU with an unnamed Zambian company on August 24 to supply 50,000 metric tonnes of fertiliser per year.
Overall, African Potash is aiming to sign deals through COMESA to supply a total of 500,000 metric tonnes of fertiliser per year, and the two deals already signed make up over a fifth of this target.
More agreements are being sought, and the company said it plans to make further announcements as more deals are signed.
By Joshua Warner; [email protected]; @JoshAlliance
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