African Potash surges after signing second fertiliser supply deal

1st Sep 2015 08:58

(ShareCast News) - African Potash surged on Tuesday after saying it has entered in to a memorandum of understanding with an unnamed Malawian fertiliser company to supply it with over 50,000 metric tonnes of fertiliser.This is Potash's second deal since it signed an agreement on 4 August with Comesa - a free trade union of 20 African countries - and Mask Africa Crowd Farm Fund Limited.Under the terms of the agreement, African Potash will source and fund the delivery of fertiliser through its proprietary network and methods, with first delivery expected in autumn 2015.Chairman Chris Cleverly said: "There is a strong demand for fertiliser in landlocked Malawi. There is a recognition in-country that its use increases productivity, reduces deforestation, increases nutritional levels, which positively affects serious issues such child mortality rates and reduces the reliance on expensive imported food."African Potash said the agreement is in line with its strategy to create a vertical platform for the mining, production and distribution of fertiliser.At 0908 BST, shares in the company were up 22.3% at 2.36p.