Funding Agreement and Sale of JV Interest

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[{"type":"text","content":"\n \n\n\n22 November 2016\n                                           \n\n\n\nAnglo African Agriculture plc\n\n(“AAA” or the “Company”)\n\nAAA signs agreement to receive funding and sell its 49.9% interest in the Guar Bean JV\n\nAnglo African Agriculture plc (LSE: AAAP), the London Main board listed food manufacturing company announces that its wholly owned subsidiary Dynamic Intertrade (Pty) Ltd (“DI”) and its Italian Company joint venture partner, have signed an agreement (the “Agreement”) with Prime Meridian Resources Corporation (“PMR”), a TSX listed company, to receive initial funding for and to sell, within 120 days from the signature of the Agreement, the loss making African Projects and Ventures (Pty) Limited (“APV”) guar business in South Africa (the “Transaction”).\n\nUnder the terms of the deal, APV will, by way of loans, receive ZAR 560,000 (approximately £31,500) to settle existing creditors and will also receive monthly payments of ZAR 150,000 (approximately £8,400) to fund its ongoing operations for a further 4 months. Additionally, APV will receive a final payment of ZAR 6,343,297 (approximately £356,000) of which ZAR 1,400,565 will repay the loans made by DI to APV and the balance will be used to repay loans made by Lamberti to APV. Should this point be reached, PMR will then also acquire APV for a nominal price and assume all outstanding liabilities.  PMR is currently in the process of a fundraising on the TSX-V market.  The completion of the Transaction, is subject to PMR securing funding, and is expected to conclude in early 2017.\n\nDavid Lenigas, the Company’s Chairman, commented:\n\n“This deal is an important step in cleaning up the Company’s loss making activities and significantly means that AAA no longer has the burden of funding the loss making guar business. On final closure of this deal with PMR, AAA will be able to direct the ZAR 1.4 million sale proceeds and the money currently being spent on the loss making APV directly in to growing our core business of manufacturing, import and distribution of herbs, spices and seasonings for the food man...

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