The Ethiopia Potash Company (EPC) of Canada recently adjusted the Acquisition Agreement with G & B, to determine selectively the acquisition of the assets of the G & B. The latter assets include a potash project with 427.22 square kilometers in Ethiopia Kiel Basin.
The initial intention of the acquisition was reachedby by the EPC, G & B executives and G & B shareholders on September 2010. In the months before January 18, 2011, the acquisition agreement had conducted three adjustments and modifications. Under the original agreement, if the Kiel potash project feasibility report satisfactory results, the shareholder and founder of G & B could obtain totaled $ 13 million EPC equity, while shareholders and founders could get $ 980,000 in cash.
EPC said, after regulatory and shareholder’s approval, the revised agreement will likely increase the total equity allocation to 3850 shares, of which 1,350 shares granted to the founder of another 25 million shares belong to the G & B shareholders. This will replace the initial 13 million shares plus $ 980,000 of the acquisition agreement. EPC Chairman of the Board and CEO, said that due to market conditions and corporate budget deficit reasons, the EPC for the acquisition, there are many unknown fears, G & B shareholders and the EPC in accordance with the new acquisition agreement to jointly promote the development of enterprises.
It is understood that EPC is through consultation in order to find new strategic partners in the potash project development. It is also reported that the EPC and Yara International Holdings BV, in Ethiopia do not have cooperative movements, B.V also carrying out sylvite development at Kiel basin.