Comment re Speculation

RNS Number : 3816L

Agriterra Ltd

05 May 2010

 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

5 May 2010

Agriterra Ltd ('Agriterra' or 'the Company')

Comment re Speculation

Agriterra Ltd, the AIM listed company focussed on the agricultural sector in central and southern Africa, notes the recent speculation regarding operations at the Compagri maize processing facility in Tete, Mozambique ('Compagri'), the Company's second facility in addition to its larger operation in Chimoio which has operated under the DECA brand for six years. 

The Board would like to clarify recent events that have occurred at Compagri, in particular in relation to the employment status of Mr. Stewart Goss, Compagri's interim Assistant Manager.  Mr. Goss was employed in January 2010 as an assistant manager at Compagri following the dismissal of the former General Manager.  His position prior to this assignment had been as a farm manager in Vanduzi Lda in Mozambique, controlling a large labour force without incident during his six year tenure.  During his time as Assistant Manager of Compagri he discovered impropriety amongst a number of employees who were subsequently arrested and convicted after he had notified the authorities.  The Board believe that this prompted a trade union backlash and Mr. Goss was subsequently informed that his work permit was cancelled.  Following legal consultation the Company has appealed the matter through the constitutional court in Mozambique and it awaits the outcome and an appeal has also been made to the Minister of Labour.  Whilst the Company awaits a resolution from the constitutional court, the Company has instigated a temporary suspension of operations at Compagri.

The Board is confident that this matter will be dealt with expeditiously by the Mozambican courts and will keep shareholders abreast of developments.

** ENDS **

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves	Agriterra Ltd	Tel: [phone]
Jonathan Wright	Seymour Pierce Ltd	Tel: [phone]
Richard Swindells	Ambrian Partners Ltd	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Susie Callear	St Brides Media & Finance Ltd	Tel: [phone]

 

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