TORONTO – MagIndustries Corp. (TSX:MAA) is ending an agreement under which Ameropa AG markets all of the potash produced in the first two phases of the Toronto-based company’s Mengo project in the Republic of Congo.
MagIndustries said Tuesday that the termination becomes effective 180 days after the notice.
The company, which is listed on the Toronto Stock Exchange, is controlled by Evergreen Resources Holding (BVI) Ltd., which acquired 77.6 per cent of its common shares in July 2011.
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MagIndustries said it was in its commercial interest to have “full flexibility” over the marketing of future potash production and that it will be developing “a new distribution strategy to be implemented before the start of production.”
Ameropa is a privately owned Swiss company, headquartered near Basel, that trades in grains and fertilizers.
Evergreen is part of the Evergreen Industries Group, a China-based group that is involved in shipbuilding, marine engineering, natural resources and logistics.
At the time of its takeover offer for MagIndustries, EIG said the Canadian company provided a strategic opportunity to diversify and expand its natural resources business.
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