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Agriterra scoops £3.2m

posted Oct 24, 2009, 12:47 AM by Yale ReiSoleil   [ updated Oct 24, 2009, 12:48 AM ]
Entrepreneurial Phil Edmonds’ African agri-business Agriterra has raised $5.1 million (£3.2 million) at 5p to expand its cattle ranching operations.

Mozambique-based Agriterra, which began life as Sudan oil flop White Nile, says it will devote the placing proceeds to its ranching and feedlot production business, Mozbife Limitada. The AIM-quoted company, steered by chief executive officer and Edmond’s right hand man Andrew Groves, says it wants to capitalise on the growing demand for beef in sub-Saharan Africa and add value to its other agricultural businesses, including two grain processing facilities in Mozambique.

Agriterra, where another Edmonds company CAMEC has a major holding, wants Mozbife to be able to process 5,000 head of cattle a year in the next two years, says Groves. The placing represents 11.9 per cent of the enlarged company, which reports progress at its Chimio and Tete maize operations and has strengthened its board with the addition of Euan Kay, who has run its Desenvolvimento E Comercializacao Agricola division for five years.

Agriterra shares, which plunged from 27p to 0.63p last year, now trade at 4.8p. That values the company at £22.7 million.