17th Sep 2014 08:44
LONDON (Alliance News) - Agriterra Ltd Wednesday said it has suspended its cocoa operations in Sierra Leone, and has finally successfully reached a settlement regarding it legacy oil claims in South Sudan, in which it has received USD5.6 million in cash.
The pan-African agricultural group said that due to the Ebola outbreak and precautionary restrictions on travelling in Sierra Leone, it has curtailed its activities in the region.
"Vehicles, warehouse facilities and other assets of the company's trading division are now being utilised by the International Federation of Red Cross and Red Crescent Societies and World Food Programme for food distribution. This division, which was established to build a presence in the cocoa market, has therefore been suspended," the company said.
The company said its confident that ceasing trading will not have a "materially adverse effect" on its financial performance.
Agriterra also said that the ongoing development of its Sierra Leone plantation had, until recently, continued during the Ebola outbreak, however, due to the current circumstances and restrictions in movement causing a shortage of labour, the original planting and clearance schedule has been restricted.
"The hectarage planted to date is being maintained, as is the plantation infrastructure including warehousing, accommodation and equipment. The state-of-the-art nursery continues to house plants which will now be used, if circumstances allow, to accelerate the company's local initiatives to increase the quality of the local growers' stock," it said.
The company said it will continued to monitor the situation locally and provide shareholders with an update late November.
"We are maintaining a presence in Sierra Leone and remain optimistic regarding the development of the country's cocoa industry," said Chairman Phil Edmonds in Wednesday's statement.
In its statement Wednesday, Agriterra also said that it has reached a successful settlement with the Republic of South Sudan and Nile Petroleum Corporation Ltd, relating to its claims arising from its legacy oil interests in South Sudan. It said it has received approximately USD5.6 million in cash from the settlement.
"We are also pleased that after several years of seeking to enforce our rights we have now reached settlement regarding our legacy oil claims in South Sudan," said Edmonds.
Agriterra shares were trading 9.6% higher Wednesday morning at 1.09 pence per share, making it one of the best performers on the AIM All-Share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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