Maputo, Mozambique, 28 Oct – The US$5.1 million obtained by Agriterra Ltd from the sale of 63.95 million shares will be applied to expanding its cattle business in Chimoio, Mozambique, the company said recently.
Agriterra has two ranches with a combined area of 21,000 hectares and, according to the statement, plans to expand this operation by increasing the number of total from 750 to 10,000 over three years and within two years plans to produce 5,000 head of cattle per year.
The Dombe ranch, with 20,000 hectares, was, according to the statement, a good buy, as it has good grazing, has easy access to water and is located near DECA, the company’s grain processing plant.
Agriterra also plans to use some of the capital to develop the infrastructures of its cattle rearing business by building an abbatoir near the two ranches and has already acquired a 200 hectare plot near Chmoio.
Agriterra’s business, which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange, is focused on the sale and processing of agricultural products following the acquisition of the companies Desenvolvimento e Comercialização Agrícola Limitada (DECA) and Compagri Limitada and cattle production with the acquisition of Mozabife Ltd.
Agriterra signed a memorandum of understanding to acquire Equatorial Biofuels (Guernsey) Limited, a palm oil producer based in Liberia. (macauhub)