Brazzaville, Republic of Congo --- 30 January 2013 - African Potash â€’ an AIM listed investing company focussed on sub-Saharan potash assets â€’ has signed an agreement to acquire an indirect 70% interest in La Societe des Potasses et des Mines S.A. (SPM), which holds the exclusive right to conduct mining research activities for potash salts over the Lake Dinga project in the Republic of Congo.
The agreement is to acquire the entire issued share capital of Patagonia Capital Limited, a Mauritian company which holds a 70% interest in SPM, a company incorporated in the Republic of Congo for the purpose of mineral exploration.
The Lake Dinga project is surrounded by numerous potash development projects including the Sintoukola potash project, owned by Elemental Minerals Limited and the Mengo potash project, owned by Evergreen Resources Holdings (BVI) Ltd following its acquisition of MagIndustries Corp. It benefits from access to infrastructure, and is less than 60km from the port of Pointe-Noire
African Potash has revealed that the total maximum consideration payable for the acquisition is US$15 million, which will be satisfied by the issue and allotment of up to US$12 million worth of new ordinary shares in the company at 10p per share, and by the payment of up to US$3 million in cash.