JOHANNESBURG (miningweekly.com) – Aim-listed exploration company African Potash has dispatched 20 000 t of urea stock in partial satisfaction of a sale agreement with a Zambian customer for 50 000 t of fertiliser, signed in October 2015.
The urea stock, valued at $10-million in gross revenue, was delivered to the Mozambique port of Beira and subsequently inspected and approved by an agent acting on behalf of the Common Market for Eastern and Southern Africa (Comesa) and Zambian Agriculture and Livestock Minister Given Lubinda.
Payment would be made through a letter of credit from an internationally accredited bank within 30 days of delivery of the urea stock and African Potash would be paid on the basis of a 30-day back-to-back letter of credit.
Delivery to the customer in Lusaka, Zambia, was expected to take about three to five days.
“I am delighted to advise shareholders of this landmark trade – our first executed under our agreement with Comesa. We are now starting to gain real momentum as our strategy to generate immediate cash flow from trading begins to reshape our company and its potential future financial performance,” said African Potash executive chairperson Chris Cleverly.
He added that African Potash had “only begun to scratch the surface” of the fertiliser market’s potential in Africa. “We remain committed to exploring new opportunities to expand our market share and geographic reach.”