|By Marketwired .||
|March 19, 2014 02:07 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 03/19/14 -- AgriMinco Corp. (TSX VENTURE:ANO) ("AgriMinco" or the "Company") announces that it has entered into a definitive agreement (the "Option Agreement") granting Premier African Minerals Limited ("Premier") the exclusive option (the "Option") to purchase AgriMinco's 30% interest in the Danakil Potash Project (the "Project"), Ethiopia. Premier, control party to AgriMinco with a 42% stake, is a mineral exploration company focused on acquiring, exploring and developing mineral properties in Africa. Under the terms of the Option Agreement, Premier can directly acquire the 30% interest in the Project, subject to TSX Venture Exchange ("TSXV") and AIM approval, on the following basis:
i. The cancellation of all the common shares of AgriMinco owned by Premier for no consideration. As at the date of this announcement, Premier owns 120,000,000 AgriMinco shares representing 42% of AgriMinco's issued share capital with a value of approximately C$2,400,000 based on the last closing mid-market price of AgriMinco shares of C$0.02 per share on 18 March 2014, being the last practicable date prior to the publication of this announcement. ii. Deliver and effect payment of debt settlement agreements in favour of AgriMinco releasing AgriMinco from all monetary obligations in respect of certain debt representing, in the aggregate, liabilities totalling C$2,265,819.50 on the condensed interim consolidated financial statements of AgriMinco for the three months ended December 31, 2013 and 2012. iii.Issue to AgriMinco new Premier ordinary free trading common shares with an aggregate value equal to C$1,000,000, such value per share based on the volume weighted of Premier average trading price for the 20 consecutive trading days immediately prior to the exercise of the Option. Based on the closing mid-market price of Premier shares of .82p per share on 18 March 2014, the last practicable date prior to the publication of this announcement, this would result in the issue of 66,023,049 new Premier shares assuming the price of Premier shares and the sterling Canadian dollar exchange rate remain constant. iv. Resulting in total consideration valued at C$5,665,819.50 to the Company.
AgriMinco's CEO, Bruce Cumming comments: "Should the Option be exercised and the transaction close, ANO will be returned to a solvent state and will continue to hold a significant indirect interest in the Danakil Project. Alternatively, AgriMinco has the ability through the liquidity afforded by the Premier shares, to pursue its other interests in West Africa which include two phosphate projects in Togo (Bassar and the Southern Phosphate) with the Bassar project having the potential to develop more than 20-22Mt at 28-30% P2O5 of phosphate resources. The Southern Phosphate project, located along strike of the producing phosphate mine in Togo, has unexplored phosphate potential. This project also contains a mixed attapulgite-bentonite deposit of 108Mt including 28Mt of 85:15 attapulgite: bentonite wqith the deposit open along strike and down dip. indicated from previous exploration by the Bureau Nationale de Recheche Miniere fp the Togolese Ministry of Mines in December, 1990. In Mali, the Company has two greenfields potash exploration projects in the northern part of Mali, located at Taoudenni. With the agreement of the Malian authorities, this project is under force majeure until the security situation stabilises to both parties satisfaction.
"The net effect of this transaction is the avoidance of a bankruptcy event for AgriMinco and the creation of an entity with significant other assets that may now be developed, creating the opportunity for the Company to expand its portfolio of projects in the agri-minerals sector. The potentially significant shareholding in Premier will give the Company exposure to Premier's portfolio of projects, including the RHA wolframite mine development."
Premier currently owns 120,000,000 common shares representing 42% of the Company's issued and outstanding common shares and is an insider of the Company. As a result, the private placement is a related party transaction pursuant to Policy 5.9 of the TSXV and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and triggers the requirement for a valuation and minority approval unless exemptions therefrom are available. The Company is relying on the financial hardship exemption within MI 61-101 to exempt the Company from having to obtain an independent valuation (MI 61-101 section 5.5(g)) as well as exempt the Company from having to obtain minority shareholder approval (MI 61-101 section 5.7(e)), as described in more detail below.
As has been previously disclosed, in connection with the development of the Project, AgriMinco is required to contribute 30% of expenditure in excess of the agreed free carry by April 7, 2014. In addition, the Company must also contribute 30% of the next fiscal year exploration budget. A failure to contribute will result in a significant dilution of the Company's interest. The operator has submitted budgets and costs for the historic overspend and cash call notices will be issued on May 6, 2014. The combined cash call for the first fiscal quarter and the historic excess is expected to be of the order of US$2,000,000 and the budget for the next 12-months, of which the Company must meet 30%, is expected to be US$20,000,000. The current anticipated amounts are in significant excess of the Company's cash on hand, accordingly, the Company currently has neither sufficient funds nor reasonably available financing options to satisfy these obligations that are anticipated in the near term.
Pursuant to MI 61-101, minority approval and an independent valuation are not required for a related party transaction in the event of financial hardship in specified circumstances. As a result, a special committee of the board (the "Special Committee") "independent" in respect of the transaction, as such term is defined in MI 61-101, was constituted to consider the Option Agreement. The Special Committee determined that the Company is in serious financial difficulty, the Option Agreement is designed to improve the financial position of the Company, and the terms of the Option Agreement are reasonable in the circumstances of the Company. Following these determinations and a recommendation to the Board of Directors, the Board of AgriMinco has made the same determination. Accordingly, AgriMinco has satisfied the elements of the financial hardship exemption.
AgriMinco Corp. is a Canadian company based in Toronto, Ontario Canada. For more information regarding AgriMinco visit our website at www.agriminco.com.
This press release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Forward-looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to changes in general economic conditions or conditions in the financial markets. Such forward-looking information is based on a number of assumptions, including but not limited to, there being no significant decline in existing general business and economic conditions. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligations to update publicly or otherwise revise any forward-looking information, except as may be required by law. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Company's filings with the Canadian securities regulators available on www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Jan. 16, 2017 11:45 PM EST Reads: 4,177
Jan. 16, 2017 11:30 PM EST Reads: 3,509
Jan. 16, 2017 09:00 PM EST Reads: 7,436
Jan. 16, 2017 08:45 PM EST Reads: 4,577
Jan. 16, 2017 08:00 PM EST Reads: 625
Jan. 16, 2017 06:45 PM EST Reads: 3,488
Jan. 16, 2017 06:00 PM EST Reads: 373
Jan. 16, 2017 05:00 PM EST Reads: 4,014
Jan. 16, 2017 03:30 PM EST Reads: 4,823
Jan. 16, 2017 03:15 PM EST Reads: 358
Jan. 16, 2017 02:30 PM EST Reads: 1,549
Jan. 16, 2017 02:15 PM EST Reads: 5,267
Jan. 16, 2017 01:45 PM EST Reads: 3,594
Jan. 16, 2017 01:30 PM EST Reads: 3,309
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Jan. 16, 2017 01:00 PM EST Reads: 1,032