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African Potash Ltd

BY: Andrew Hore |
POSTED: 04/02/2012 |
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Phil Edmonds shell African Potash Ltd is buying a potash asset in the Republic of Congo.

The company will acquire an indirect interest of 70% in La Societe des Potasses et des Mines SA (SPM) by buying Mauritius-based Patagonia Capital at a cost of up to $15m $12m in shares and $3m in cash. African Potash will loan Patagonia $1m ahead of completion of the reverse takeover.

SPM has a 12 month authorisation to prospect for potash in the Lake Dinga area of the Republic of Congo. This is an area where there are a number of potash projects.

African Potash raised £4.185m gross at 5p a share when it joined Aim on 30 September 2011. That valued the company at £7.94m. One month later a further £2m was raised at the same share price.

The shares were suspended after the market closed on 3 February. At the suspension price of 7.62p a share, African Potash is currently valued at £15.1m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJanuary2012_28.pdf