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Lac Dinga Licence Renewal

RNS Number : 0838Y
African Potash Ltd
12 May 2016
 

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

12 May 2016

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

Lac Dinga Licence Renewal

 

African Potash, the AIM listed exploration company focused on the vertical integration of fertiliser operations in Africa and Sub-Saharan potash assets, is pleased to announce that the exploration licence for the Lac Dinga Project ('Lac Dinga' or the 'Project') in the Kouilou region in the Republic of Congo has been renewed for a further two years, with the right to extend for an additional two years following this.   

 

As part of this renewal process the licence area has been reviewed and the Company has relinquished a portion of the concession area which overlapped the basin margin, which the Company did not consider to be particularly prospective.  As a result, the Project area now covers 555 sq km.

 

African Potash retains its interest in the exploration side of the fertiliser industry through its 70% interest in La Société des Potasses et des Mines S.A. ('SPM'), which holds the exclusive right to conduct exploration activities for potash salts over the Lac Dinga project area.  Previous  exploration drill holes on conceptual targets identified from seismic data confirmed the presence of laterally extensive potash mineralisation.  The assay results announced in December 2014 indicated intersections of salt and potash mineralisation over significant thickness with individual sample grades of up to 25% potassium chloride (~15.8% potassium oxide) returned.  Furthermore, about 250 sq km of the licence area is interpreted to be underlain by salt-bearing strata, which occurs at depths of about 300m to 420m below surface.  This type of mineralisation is characteristic of the Congolese coastal basin, where a number of commercial potash deposits have been identified, and underpins the Project's potential to host significant potash deposits.

 

African Potash Executive Chairman Chris Cleverly said: "We are delighted to have received formal confirmation that the exploration licence for Lac Dinga has been renewed for at least a further two years.  The Project, which is located in an area that is extremely prospective for potash, a key fertiliser component, provides us with access to the exploration aspects of the fertiliser industry, complementing our growing fertiliser trading operations.  With interests spanning potash exploration, fertiliser trading and distribution, we have created a strong foundation in line with our strategy to create vertically integrated fertiliser operations in Africa."

 

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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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