Murray River Organics Group Limited (ASX:MRG) (“the Group”) today announces it has signed an agreement for the sale of 113ha of planted conventional citrus and wine grapes at its Nangiloc property
to a subsidiary of Costa Group Holdings Ltd (ASX:CGC) ("Costa") for $4.5m.
Coupled with surrounding vacant land, the sale comprises 390 ha of MRO’s 3,040 ha Nangiloc property, which is effective from 1 October 2020.
The parcel includes citrus and wine grape plantings with final settlement of the sale subject to registration of a plan of subdivision, which is anticipated to complete in early 2021.
MRG’s Managing Director, Valentina Tripp said: “This is another important milestone for the group to realise its vision to become a leading integrated organic branded food business. The funds will be used to pay down debt and allow the business to focus on growth in our branded portfolio.”
Under the terms of the sale, Costa will take responsibility for the operations and management of the parcel to be sold, including responsibility for operational costs, and entitlement to crops. The Group will lease the property to Costa until the sale is finalised.
The remaining 2,650 hectares of the Nangiloc property is the subject of a feasibility study, Project Magnum, focusing on optimum crop combinations and a potential localised desalination plant water
solution.
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