African Potash Ltd. (LSE:AFPO) provided an update on the status of a farm-out transaction relating to its interest in the Lac Dinga project in the Republic of Congo. The transaction is with African Agronomix Ltd., and both companies have now entered into an extension letter to complete the deal.
The extension letter confirms that:
- AAX is satisfied with the results of its legal and technical due diligence into the Project (thereby satisfying this relevant Condition)
- the remaining Conditions are “less critical to the ability of the Parties to perform” the Farm-Out. As a result, the Company and AAX have agreed to extend timing and/or reduce the requirement for satisfaction of certain of the Conditions; and
- the Company and AAX have agreed to extend the timetable for satisfying or waiving all the remaining Conditions until 15 September 2017.
Chris Cleverly, executive chairman of African Potash, commented:
This is excellent news for everyone associated with African Potash and AAX. We can now work towards completing the other aspects of the Farm-Out as soon as possible.
The work on the Farm-Out paves the way for African Potash to further develop our fertiliser business in the Republic of Congo and we look forward to continuing to work with AAX and other national and local partners in the Republic to expand African Potash’s fertiliser interests.