MARKET DEVELOPMENT
Sierra Rutile Enters into an Agreement with Carmanor
Sierra Rutile Enters into an Agreement with Carmanor
05/06/2015 (African Mining) - Sierra Rutile Limited has entered into an agreement with Carmanor Limited to grow its agriculture subsidiary, African Lion.
The Company reported that Carmanor will earn-in to African Lion in return for fully-funding the expansion of African Lion's palm oil, rubber and cacao plantations over 2 500 hectares and the construction of an oil palm mini-mill.
The agreement will significantly accelerate the development of African Lion's palm oil, rubber and cacao operations.
The pineapple plantations of African Lion are already self-funding and will therefore be excluded and remain 100% owned by Sierra Rutile.
The agreement will allow Sierra Rutile to focus its human and capital resources on its core operations, while at the same time ensure that all its agriculture projects will continue to advance without further cash contributions from the Company.
Carmanor will bring a team with an excellent track record in sustainable community development and experience in operating agriculture projects in West African countries such as Sierra Leone, Ghana and Liberia.
Commenting on the transaction, John Sisay, Sierra Rutile's Chief Executive Officer said, "I am very pleased to finalize this transaction with Carmanor as it allows Sierra Rutile to focus on our core mineral sands business, while retaining a meaningful, fully-funded interest in a broad-based agri-business. Carmanor is an ideal partner for Sierra Rutile due to their team's proven track record in sustainable community development and their existing operations in the Sierra Leonean agriculture sector. We are pleased at the opportunity to further expand our presence in Sierra Leone, partnering with one of the country's most established businesses. The African Lion platform allows us to advance an accelerated business plan, building off the infrastructure Sierra Rutile already has in place and the plantations African Lion has already developed."
Sierra Rutile is an AIM listed rutile exploration and development company with operations in Sierra Leone.
The Company reported that Carmanor will earn-in to African Lion in return for fully-funding the expansion of African Lion's palm oil, rubber and cacao plantations over 2 500 hectares and the construction of an oil palm mini-mill.
The agreement will significantly accelerate the development of African Lion's palm oil, rubber and cacao operations.
The pineapple plantations of African Lion are already self-funding and will therefore be excluded and remain 100% owned by Sierra Rutile.
The agreement will allow Sierra Rutile to focus its human and capital resources on its core operations, while at the same time ensure that all its agriculture projects will continue to advance without further cash contributions from the Company.
Carmanor will bring a team with an excellent track record in sustainable community development and experience in operating agriculture projects in West African countries such as Sierra Leone, Ghana and Liberia.
Commenting on the transaction, John Sisay, Sierra Rutile's Chief Executive Officer said, "I am very pleased to finalize this transaction with Carmanor as it allows Sierra Rutile to focus on our core mineral sands business, while retaining a meaningful, fully-funded interest in a broad-based agri-business. Carmanor is an ideal partner for Sierra Rutile due to their team's proven track record in sustainable community development and their existing operations in the Sierra Leonean agriculture sector. We are pleased at the opportunity to further expand our presence in Sierra Leone, partnering with one of the country's most established businesses. The African Lion platform allows us to advance an accelerated business plan, building off the infrastructure Sierra Rutile already has in place and the plantations African Lion has already developed."
Sierra Rutile is an AIM listed rutile exploration and development company with operations in Sierra Leone.