Agriterra to sell US$50mn South Omo interest to Marathon Ethiopia

Image source: Agriterra.Image source: Agriterra.Pan-African agricultural company, Agriterra, has announced the sale of its 20 per cent interest in the South Omo Block in Ethiopia to Marathon Ethiopia in a deal that could be worth US$50mn

An initial US$40m is due on completion and a further US$10m if Marathon makes a commercial discovery.
The agreement is dependent on the consent of the Ethiopian Ministry of Mines as well as the waiver of pre-emption rights by Tullow Oil and Africa Oil (which have now been given).
Agriterra will use the funds to implement invest in the rapidly growing agricultural market in sub-Saharan Africa, with the aim of becoming a leading food provider.  
The company currently has four key divisions: cattle ranching; maize farming and milling in Mozambique; cocoa trading; and palm oil operations in Sierra Leone.
"The sale of our legacy South Omo interest provides us with a dramatic cash injection,” said Agriterra chief executive officer, Andrew Groves.
"The funds from this sale will enable us to realise our rapid expansion plans across all our agricultural businesses, effectively enabling the company to become a significant pan-African food producer and processor.”

 

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