Placing to Raise US$7 million

RNS Number : 2247W

Agriterra Ltd

16 November 2010

 



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

16 November 2010

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

Placing to Raise US$7 million to Expand Mozambique Beef Operations

Agriterra Ltd, the AIM listed company focussed on the agricultural sector in central and southern Africa, announces that it has conditionally raised US$7 million (before expenses) by way of a placing of 145,483,334 new ordinary shares of 0.1 pence each in the Company ('the Placing Shares'), with new and existing shareholders at a price of 3 pence per Placing Share ('the Placing').  The funds raised will be used primarily to expand the Company's cattle ranching and feedlot production business in Mozambique and for general working capital.

Agriterra Executive Director Euan Kay said, "Our cattle ranching operations continue to progress rapidly, with total head of cattle now exceeding 1,600 across our two ranches which cover more than 15,000 hectares.  Following the Centro de Promocao de Investimentos approval (Major Project Investment Approval) from the Government of Mozambique in October, we plan to aggressively move forward with our expansion plans, and continue development of the Vanduzi abattoir/feedlot project."

The Placing Shares will represent 20.99% of the enlarged issued ordinary share capital, which will then comprise 693,254,888 ordinary shares of 0.1p each.

The Placing is conditional on the admission of the Placing Shares to trading on AIM ('Admission').  Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading and it is expected that Admission will occur, and dealings in the Placing Shares will commence on 19 November 2010.

The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of Agriterra, including the right to receive any dividends and other distributions declared following Admission. 

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

Andrew Groves	Agriterra Ltd	Tel: [phone]
Jonathan Wright	Seymour Pierce Ltd	Tel: [phone]
David Foreman	Seymour Pierce Ltd	Tel: [phone]
Robin Henshall	Matrix Corporate Capital LLP	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Susie Geliher	St Brides Media & Finance Ltd	Tel: [phone]

 

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