Disposal of Aviation Assets

RNS Number : 3964F

Agriterra Ltd

27 July 2016

 

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

27 July 2016

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

Disposal of Aviation Assets and Acquisition of Pelletiser

Agriterra announces that it has today agreed the sale of its Beech King Air F-90 plane to a registered aircraft retailer in South Africa for consideration of US$290,000 (pre-transaction costs) which is expected to complete within the next few days. This sale follows the recent disposal of its Aerospatiale Alouette 3 Helicopter to the same purchaser for a consideration of US$80,000 (pre-transaction costs). A further sale of the Company's Robinson R44 Helicopter has also been agreed with the same purchaser for US$200,000 (pre-transaction costs); it is expected that the third sale will complete on or around 5 August 2016. All considerations receivable are payable in cash upon completion, and the assets have been sold at their market value, which exceeds their collective current book value of approximately US$258,000.

The sale of these aviation assets is part of the Company's ongoing operational improvement programme in Mozambique. The proceeds of the sale of these assets will be applied, in part, towards the acquisition and operation of an animal feed pelletiser machine (at a "delivered" cost of approximately US$75,000). The pelletiser, which is due for shipment from South Africa to the Company's facilities in Chimoio, Mozambique this week, will provide the Company with access to an additional revenue stream, by converting the "bran" by-product from the Company's grain processing operations this into processed animal feed, which can be sold at a premium to farmers within the region. Further information on the operations of the pelletiser will follow in due course, following installation, commissioning and initial sales.

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

Andrew Groves	Agriterra Ltd	Tel: [phone]
Daniel Cassiano-Silva	Agriterra Ltd	Tel: [phone]
David Foreman	Cantor Fitzgerald Europe	Tel: [phone]
Michael Reynolds	Cantor Fitzgerald Europe	Tel: [phone]

 

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