Update on Farm Lands of Africa

RNS Number : 6783O

Craven House Capital PLC

23 September 2013

 



23 September 2013

Craven House Capital Plc

("Craven House" or the "Company")

Update on Farm Lands of Africa

The Company is pleased to announce that it has now completed its settlement agreement with Farm Lands of Africa Inc. ("FLAF") ("Settlement Agreement").

The directors believe that this is an extremely beneficial outcome, which has the potential to deliver significantly to the net asset value of the Company. As a result of the settlement, Craven House now holds a 50% stake in Farm Lands of Africa Ltd ("FLAL"), a BVI registered company, which owns 90% of Land and Resources (Guinea) SA ("LRG"). LRG has negotiated lease terms over approximately 9,000 hectares of potential arable farmland and surveyed more than 100,000 further hectares for development.  Craven House now holds an effective 45% stake in LRG.

The completion of the Settlement Agreement has resulted in Craven House receiving $60,000 cash and 20,000,000 shares in FLAL BVI.

Interim Chairman, Mark Pajak, and Non-Executive Director, Alexandra Eavis, have both joined the board of FLAL joining three existing directors. Following resolution of historic shareholder conflicts in FLAF, the Company will now be able to assist FLAL to focus on the agricultural activities of LRG, which have enormous potential.

Mark Pajak, Interim Chairman, commented: "We are delighted to have concluded the Settlement Agreement with FLAF and are now looking forward to helping FLAL and the Guinean Government, who are our fellow shareholders, develop LRG into the valuable and productive asset we have always thought it could be. We look forward to reporting on our progress in due course, with the knowledge that achieving significant uplift in the value of this land will require substantial investment and diligent management in the coming years; which we are confident FLAL can secure and deliver "

For further information please contact:

Craven House Capital Plc:
www.cravenhousecapital.com
Alexandra Eavis Non Executive Director & Company Secretary	Tel: [phone]
Daniel Stewart & Company Plc: (Nominated Adviser & Broker)
Antony Legge/James Thomas	Tel: [phone]

 

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