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Centrex (ASX:CXM) enters trading halt, signs contract with Ravensdown

The Market Online Deal Room
ASX:CXM      MCAP $48.00M
04 April 2022 16:52 (AEST)

Source: Centrex

Centrex (CXM) has entered a trading halt in regards to an upcoming capital raise.

The Australian exploration and mining company requests that the trading halt is in place until it releases the details of the raise or the commencement of trading on Wednesday, April 6.

In addition to the halt, Centrex announced a new contract signed by its wholly-owned subsidiary.

Fertiliser-focused subsidiary, Agriflex signed a contract with Ravensdown, a leading New Zealand-owned agricultural cooperative company.

The contract is for a 5000 wet tonnes beneficiated phosphate rock trial shipment which has been sold on a free-on-board (FOB) basis, with loading expected in the first half of September, 2022.

However, the trial shipment is conditional upon Agriflex completing certain upgrades to the processing plant and receiving necessary approvals.

In addition, the contract includes a first right of refusal to Ravensdown to purchase 20 per cent of the production at Centrex’s Ardmore phosphate project under a three-year offtake agreement.

Ravenswood may exercise the first right within 45 days of Agriflex providing notice of its good faith estimate of available production for the three-year period.

Centrex Managing Director Robert Mencel said Agriflex was pleased to sign the agreement with Ravensdown which will also help to support New Zealand farmers.

“We hope this is the beginning of a mutually beneficial long term relationship. With the
signing of this agreement, the Ardmore project has 70 per cent of its first three years of production allocated to first class customers,” Mr Mencel said.

Company shares last traded at 21 cents on April 1.

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