Transense Technologies wins Anglo American contract - UPDATE

Transense Technologies, provider of sensor systems to transport and industrial markets, has secured a contract with a subsidiary of mining giant Anglo American and proposed a fundraising at a discount to its recent share price.Under the contract, Transense will provide Anglo's subsidiary Kumba Iron Ore with its iTrack vehicle tyre monitoring systems to its Sishen mine in South Africa over the next year.The contract is for a total sale value of approximately £1.0m. The supply of services and consumables is expected to yield ongoing sales of approximately £0.5m after the first year. In order to facilitate the Kumba deployment, Transense's Translogik tyre-management arm has been working with Anglo's electrical service contractor, Trysome, who supply certified technicians for on-site installation and repair services to the mining industry."We are delighted that after extensive testing and trials of the Translogik iTrack system we have secured this high-profile contract," said Transense's Chief Executive Officer, Graham Storey. "To our knowledge this is the largest single deployment of tyre monitoring systems to the mining industry anywhere in the world."Also on Friday, Transense proposed a share placing with institutional shareholders to raise £3.2m and an open offer to raise up to a further £1.05m both at the price of 7.5p, a marked discount to recent highs. The company said the proceeds of the placing and offer to be used principally for sales and field support, quality control and for working capital purposes.Shares in Transense were down 24% to 8.38p at 11:42 on Friday.RD