RNS Number : 3121Y
Radicle Projects Plc
04 July 2008
4 July 2008
Radicle Projects PLC
("Radicle" or the "Company")
Radicle acquires MIS interests in wheat production project
Radicle (EPIC: RDP.L), the AIM quoted UK company involved in the acquisition and
management of
Australian agribusiness projects, is pleased to announce the acquisition of 1,500
Co-Production
Units in The 2008 Grain Co-production Project (the "Grain Project") for a total cash
consideration of
AU$6.6 million (£3.2 million). Radicle's interest represents approximately 15 per cent.of the Grain Project.
The Grain Project is expected to produce income from the sale of wheat (90%) and Barley
(10%) during
the current financial year. The first crop was planted in the 2007 Australian autumn
planting season and is
well advanced, benefiting from favourable weather conditions since planting. This is a
three year
project. The project is expected to return some 15 per cent of proceeds from the 2008 and
2009 harvests
to investors with the balance held to cover the development of the following year's crop,
while the net
proceeds of the final crop for 2010 will be fully distributed.
The Grain Project is managed by Australian Agricultural Contracts Ltd ("AACL"). The Grain
Project
comprises approximately 125,000 hectares, of which over 100,000 hectares is located in the
wheat
belt of Western Australian. The Grain Project also has smaller fields in South Australian,
Victorian
and New South Wales. Radicle's interest in The Grain Project is forecast to yield
approximately
60,000 tonnes of grain per annum.
ACCL has developed an innovative "contract" arrangement that allows AACL to establish a
network
of grain producers who provide a diverse range of farmers, growing regions and crops
(wheat and
barley). This is in line with Radicle's stated aim of providing a diverse range of
geographic locations for
the production of its crops. .
Radicle has also been paid a fee of AU$900,000 for provision of services to AACL by
securing buyers for
the Grain Project.
An independent valuation of the assets acquired values Radicle's holding
at approximately AU$7.5m (£3.6 million). The Grain Project generated no revenues in the
year to 30
June 2008 while planting costs relating to these assets were estimated to be
approximately AU$5.4 million (£2.6 million).
Tim Bennett, Chief Executive commented, "Wheat is in heavy demand around the world and
this makes
this project an exciting and attractive acquisition. We expect the project to be producing
cashflow for the
group in the current financial year."
--ENDS--
Enquiries:
Radicle Projects PLC
Tel : 020
7016 5300
Michael Finniston, Chairman
Tel: 07968 580
448
Tim Bennett, CEO
Tel: 07969
981 790
Charles Stanley Securities
Tel: 020 7149
6000
Nominated Adviser
Russell Cook/Freddy Crossley
Bishopsgate Communications
Tel : 020 7562 3350
Maxine Barnes / Nick Farmer
This information is provided by RNS
The company news service from the London Stock Exchange
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