African Potash Announces GBP825,000 Private Placement

African Potash (LSE:AFPO) announced a private placement to raise gross proceeds of GBP825,000 in order to improve local infrastructure and to support its trading operations.
As quoted in the press release:

African Potash, the AIM listed exploration company focused on the vertical integration of fertiliser operations in Africa and sub-Saharan potash assets, announces a placing (‘Placing’) of 48,529,412 new ordinary shares in the Company (‘Ordinary Shares’) (the ‘Placing Shares’) at a price of 1.7p pence per share (the ‘Placing Price’) to raise gross proceeds of £825,000 with institutional and other investors.  The funds raised will be used to improve local infrastructure to support the development of African Potash’s revenue generative trading operations in line with the Company’s strategy to become a vertically integrated fertiliser business focussed on Africa and for general corporate and working capital purposes. 

African Potash Executive Chairman, Chris Cleverly, said:

Since turning our short-term attention to trading fertiliser and fertiliser constituents, African Potash has transformed itself from an early-stage exploration company into a business capable of capitalising on the immediate and critical need for fertiliser in sub-Saharan Africa, and in so doing, generating revenues and healthy margins – all within the space of six months.  I believe our recent announcements detailing our first two fertiliser trades have demonstrated the potential financial rewards for moving into the fertiliser trading market, and it with this in mind that I announce today’s placing, which will support the expansion of African Potash’s trading operations.
The funds raised will be used specifically to establish infrastructure to enable the Company to deliver further transactions with additional parties and in new territories.  I look forward to providing further updates to shareholders in due course as we look to swiftly execute our expansion objectives and drive African Potash towards becoming an integrated supplier and trader of fertiliser and fertiliser constituents across Africa.

Click here for the full press release.