African Potash, the AIM-listed African exploration company, has secured financial and technical resources with an aggregate value of approximately $2m to commence its “Phase 1” drilling and exploration programme at its Lac Dinga Potash Project in the Republic of Congo.
African Potash has raised approximately $1.7 million through a conditional placing of 53,762,073 new ordinary shares of 1.9p each and has finalised a camp build, logistics support and operations management agreement valued at $0.3m.
Hedgestone Advisory, a logistics and operations specialists group with extensive knowledge of the Republic of Congo, has been engaged to lead and facilitate the infrastructure and logistics operations supporting an initial exploration programme at Lac Dinga Project in an “equity for services” agreement.
Commencement of the exploration campaign targeted in Q3 2014 with two holes scheduled to be drilled by September 2014. Maiden drilling campaign designed to further the understanding of potash mineralisation at Lac Dinga and determine the resource potential of the Lac Dinga Project. Lac Dinga Potash Project is located in a world-class potash bearing region and is contiguous to the Sintoukola Potash Project, which has a reported Measured and Indicated sylvinite Resource of 573Mt grading 20.92% K2O.
African Potash CEO, Edward Marlow, said, “The funds raised today, coupled with the engagement of Hedgestone Advisory, a company owned and run by Paul Quirk, a pre-eminent figure in the Congolese mining industry, strengthens our ability to rapidly implement our exploration plans for 2014 and begin to determine the resource potential of Lac Dinga.
“The Lac Dinga licence is surrounded by world-class potash projects, including Elemental Mineral Limited’s Sintoukola Project; projects in this area are located in a strategically important region with a historic record for potash production. However, this drilling programme is the first step in defining the tangible value of our exciting greenfield project.”
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