Agriterra Ltd US$28 million received from Marathon Oil (7440W)
January 31 2013 - 2:00AM
UK Regulatory
TIDMAGTA
RNS Number : 7440W
Agriterra Ltd
31 January 2013
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
31 January 2013
Agriterra Ltd ('Agriterra' or 'the Group')
US$28 million received from Marathon Oil
Agriterra Ltd, the AIM listed pan African agricultural company,
is pleased to announce that it has completed the assignment of its
20% interest in the South Omo Block ('the Block') to Marathon
Ethiopia Limited BV, a wholly-owned subsidiary of Marathon Oil
Corporation (NYSE: MRO) ('Marathon Oil') and has received a payment
of US$28million (plus closing adjustments), from Marathon Oil.
In addition a gross sum of US$12 million has been lodged with
the Government of Ethiopia, on account, pending finalisation of any
tax payable by Agriterra related to this transaction. Tax will be
calculated at 30% of the net gain realised after attributable past
costs incurred by Agriterra in the development of the Block. After
final determination of any tax payable, the balance will be
refunded to Agriterra.
A further US$10 million (subject to applicable tax) will be
payable to Agriterra on Marathon Oil's participation in a
commercial discovery in the Block.
Agriterra CEO Andrew Groves said, "I would like to take this
opportunity to thank all parties involved in the completion of the
sale of South Omo, in particular, the Government of Ethiopia,
Marathon Oil, and our partners in the Block, Tullow Oil and Africa
Oil. This injection of capital into our business, representing
approximately 50% of our market capitalisation, will facilitate our
rapid expansion plans across all our agricultural divisions,
enabling the Group to become a significant pan-African food
producer and processor."
** ENDS **
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0) 20 7408 9200
David Foreman Seymour Pierce Ltd Tel: +44 (0) 20 7107 8000
Rick Thompson Seymour Pierce Ltd Tel: +44 (0) 20 7107 8000
Andy Cuthill MC Peat & Co LLP Tel: +44 (0) 20 7104 2332
John Beaumont MC Peat & Co LLP Tel: +44 (0) 20 7104 2335
Susie Geliher St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
Notes
Agriterra Ltd is an AIM listed agricultural company with five
divisions: beef, maize, cocoa, fruit and palm oil. Its cattle
ranching business, Mozbife, has a herd in excess of 5,400 head, a
land holding of over 21,000 hectares, a feedlot, a 4,000 head per
month capacity abattoir and retail units. In addition to selling
meat from its own herds, throughput for the feedlot and abattoir
will be supplemented using cattle bought in from local communities.
Agriterra also owns a proximal banana plantation and macadamia
orchard.
Agriterra's maize buying and milling operations, DECA and
Compagri, are located in Chimoio and Tete in central and
north-western Mozambique respectively. These collect maize from
circa 350,000 farmers using Agriterra's own vehicle fleet, process
it into maize meal, the African staple, and then sell it back to
the local market, into supermarkets and to the World Food
Programme.
Agriterra's cocoa business is based in Sierra Leone, through its
100% subsidiary Tropical Farms Limited, which is currently a buying
and trading operation, but provides an ideal conduit to branch out
into cocoa production in West Africa. Its strategy is to establish
itself as a secure, sustainable and traceable source of supply to
meet the requirements of the major cocoa consumers who are placing
increased emphasis in this area.
Agriterra has expanded its portfolio of agricultural products
through the addition of palm oil, and holds a lease over
approximately 45,000 hectares of brownfield agricultural land in an
area suitable for palm oil production in the Pujehun District in
the Southern Province of Sierra Leone. This area of Sierra Leone,
which is close to the Liberian border, receives one the highest
levels of rainfall in Sierra Leone, which in itself, receives some
of the highest rainfall globally. In addition, the lease area is
located on the equatorial belt, which is the most favourable
geographical location for palm oil production.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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