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MoU with Government of Uganda

13th Jun 2016 12:00

RNS Number : 0068B
African Potash Ltd
13 June 2016
 

African Potash Limited / Index: AIM / Epic: AFPO / Sector: Mining

13 June 2016

African Potash Limited ('African Potash' or 'the Company')

MoU with Government of Uganda

 

African Potash, the AIM listed exploration company focused on the vertical integration of fertiliser operations in Africa and Sub-Saharan potash assets, confirms that, following press speculation, it has signed a non-binding Memorandum of Understanding ('MoU') with the Government of Uganda to support the development of a fertiliser industry in Uganda which will seek to help ensure the availability and effective distribution of fertilisers to Ugandan farmers. This MoU is supported by the Common Market for Eastern and Southern Africa ('COMESA'), with whom African Potash has a trading agreement.

 

Under the terms of the non-binding MoU, African Potash will endeavour, on a best efforts basis, to source 20,000 metric tonnes ('MT') of fertilisers internationally and arrange delivery to Kampala, Uganda for purchase by the Government of Uganda. African Potash will also conduct a Feasibility Study in order to assess the viability for the manufacture of fertilisers in Uganda using local materials. Depending on the results of this study, a further agreement for the establishment of a facility for the manufacturing of fertilisers may then be entered into by the two parties. The MOU is subject to the signing of definitive legally binding agreements. In the event the Company enters into legally binding definitive agreements in respect of the MOU, a separate announcement will be made. There can be no guarantee that any such definitive agreements will be entered into or that any such fertiliser deliveries will be made.

 

* * ENDS * *

 

For further information visit www.africanpotash.com or contact the following:

 

Chris Cleverly

African Potash Limited

+44 (0) 20 7236 1177

Stewart Dickson

Cantor Fitzgerald Europe

+44 (0) 20 7894 7000

Carrie Drummond

Cantor Fitzgerald Europe

+44 (0) 20 7894 7000

David Porter

Cantor Fitzgerald Europe

+44 (0) 20 7894 7000

Colin Rowbury

Cornhill Capital Limited

+44 (0) 20 7710 9610

Charlotte Heap

St Brides Partners Ltd

+44 (0) 20 7236 1177

Susie Geliher

St Brides Partners Ltd

+44 (0) 20 7236 1177 

 

About African Potash

 

African Potash is an AIM quoted company focussed on building a vertically integrated platform for the mining, production and distribution of fertiliser, primarily within Africa.

 

The Company has a trading agreement with the Common Market for Eastern and Southern Africa ('COMESA'), a free trade union for twenty African member states, to supply and deliver fertiliser to off-takers identified and introduced by COMESA.

 

The Company also operates the Lac Dinga Project in the Republic of Congo, which is prospective for potash.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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