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Restoration of Trading on AIM

RNS Number : 0266O
African Potash Ltd
08 October 2012
 



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

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

Restoration of Trading on AIM

 

African Potash Limited announces that the suspension of trading of its ordinary shares on AIM will be lifted at 07:30 on 8 October 2012.

 

The Company's ordinary shares were suspended from trading on 3 February 2012 pending the publication of a readmission document required in connection with the Company's proposed acquisition of the entire issued share capital of Patagonia Capital Limited ('Patagonia'), which would constitute a reverse takeover, as announced on 3 February 2012.

 

As announced previously, completion of the proposed acquisition of Patagonia was subject to certain conditions precedent including Societe des Potasses et des Mines (a 70% subsidiary of Patagonia, 'SPM') being granted a "Permis de Recherches" (for potash and related minerals) in Congo Brazzaville.  SPM has not to date been granted this Permis de Recherches and as a result, the Board is no longer pursuing the acquisition.  Accordingly the purchase agreement has terminated as the conditions cannot be satisfied prior to the contractual long stop date.

 

African Potash Chairman and CEO, Edward Marlow, said, "Whilst we are disappointed that it has not been possible to consummate the proposed acquisition of Patagonia/SPM and related investment into Congo Brazzaville at this time, due to unexpected and unforeseeable circumstances, the board is obliged to pursue its investment strategy in a timely manner, in the best interests of the Company's shareholders. Nevertheless, the board retain the view that Congo Brazzaville can be an attractive jurisdiction for investment and will maintain dialogue with its local partners.

 

"With Company's highly experienced management team and board, and strong cash position, I believe we will identify one or more appropriate investment opportunities in the near future and shareholders will be appraised of progress in this regard in due course."

 

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

Ed Marlow

African Potash Limited

+44 (0) 20 7408 9200      

Jonathan Wright

Seymour Pierce Limited

+44 (0) 20 7107 8000      

David Foreman

Seymour Pierce Limited

+44 (0) 20 7107 8000      

Richard Greenfield

GMP Securities Europe LLP

+44 (0) 20 7647 2836      

Susie Geliher

St Brides Media and Finance Ltd

+44 (0) 20 7236 1177      

 

 


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