AgriMinco Corp.
TSX VENTURE : ANO

November 27, 2013 14:22 ET

AgriMinco Corp. Announces Amendments to the Joint Venture With Danakil Potash Corp.

TORONTO, ONTARIO--(Marketwired - Nov. 27, 2013) - AgriMinco Corp. (the "Company") (TSX VENTURE:ANO) is pleased to announce that further to the joint venture (the "JV") between the Company and Danakil Potash Corporation ("Danakil Corp.") as further described in the Company's press release dated July 4, 2013, the Company, Danakil Corp. and Danakil Holdings Limited ("JVCo", which is 30% owned by the Company and 70% owned by Danakil Corp.) have entered into a Deed of Variation (the "Deed") with respect to how the Company and Danakil Corp. would operate JVCo and develop the Danakil potash licence in Ethiopia (the "Licence").

The Deed states that:

  • Danakil Corp. is solely responsible for the funding the first US$7 million of project expenditures relating to development of the Licence;
  • after completion of such US$7 million funding obligation by Danakil Corp. and in the event that the Company is required to advance any cash calls by JVCo prior to March 31, 2014, such advance shall be made by Danakil Corp. and the Company shall reimburse Danakil Corp. within 7 days of March 31, 2014, failing which, the Company's interest in JVCo will be diluted in accordance with the remaining terms of the JV;
  • the definition of project expenditures includes all costs incurred in relation to the preparation of a Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate and technical, logistical, environmental, and other studies related to the exploration, development and mining of the Licence area; and
  • the Company's interest in JVCo cannot be diluted below 10% until a definitive "feasibility study" (within the meaning of NI 43-101) on the Licence is produced and that if a shareholder's interest is diluted below 10% such interest shall be redeemed for a 1% royalty over the gross sales revenues (less any taxes or applicable government royalty or government share of revenues attributable to any ownership interest) from the sale of potash.

About AgriMinco Corp.

AgriMinco Corp. is a Canadian company based in Toronto, Ontario and Addis Ababa, Ethiopia.

Forward-Looking Information

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 the 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.

Contact Information

  • AgriMinco Corp.
    George Roach
    Chief Executive Officer and Director
    +44 779 626 3999
    george@regentresources.co.za

    AgriMinco Corp.
    Michael Galloro
    Chief Financial Officer and Director
    416 907 5644