Aim-listed exploration company African Potash has subscribed for 8.75-million ordinary shares at a price of 0.8 pence per ordinary share in the enlarged share capital of Blenheim Natural Resources, securing a 4.74% stake in the mining investment group.
As part of this placing, African Potash chairperson Chris Cleverly has joined the board of Blenheim as a nonexecutive director.
African Potash said in a statement on Thursday that the move established a relationship between both parties looking for value opportunities, particularly in Africa, as African Potash continued to build its vertically integrated fertiliser model.
“African Potash is delighted to invest in Blenheim, assisting it to continue to make investments in accordance with its investing policy. Africa remains one of the fastest-growing regions in the world and, according to the African Development Bank, the size of Africa's food and agribusiness will be $1-trillion by 2030 and foreign direct investment into this sector will increase to $45-billion by 2020.
“We intend to be at the forefront of this trend and the relationship between African Potash, and Blenheim is a positive step towards identifying potential opportunities for the benefit of shareholders of both companies,” said Cleverly.