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Agriterra yesterday announced that it has raised US$7m by way of a placing to fund expansion.

Focussing on agriculture and associated civil engineering projects in southern Africa, AIM listed Agriterra has issued a highly encouraging operations update, detailing progress at their major developments, mainly in Mozambique.The share price has suffered in recent months following management changes at the Group’s Compagri operations but today’s update gave the shares a deserved boost.

Agriterra (LON:AGTA) give operations update on production in southern Africa

Focussing on agriculture and associated civil engineering projects in southern Africa, Agriterra (listed on AIM) yesterday gave an operations update, detailing progress at their major developments, mainly in Mozambique.

The AIM listed company focussed on the agricultural sector in central and southern Africa issued an operations update on its maize processing, milling and cattle ranching operations in Mozambique.

Results for the period from 1st July 2008 to 31st May 2009 highlight the shift in strategy to agricultural sector and huge opportunity in central and southern Africa.

The central and southern African agricultural company announced a conditional placing of 63.9m new ordinary shares to both new and existing shareholders to raise £3.2m.
The funds are being raised to expand its subsidiary’s cattle ranching and feedlot production business in sub-Saharan Africa to meet the growing demand for beef in the area.

Agriterra’s investment in Mozambique agriculture looks to follow a low risk cash generative model and is a genuine socially responsible investment opportunity that looks to be creating wealth amongst the agricultural community in Africa.