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21 Apr 2010 12:15
21 April 2010
Watermark Global PLC ("Watermark" or the "Company")
Clarification Statement
Watermark, the AIM quoted Company which focuses on the treatment of Acid Mine Drainage (AMD) in South Africa, previously announced (10.56 am on 20 April 2010) that in respect of the funding of its South African operations and the regulatory delays being experienced: "The company is unsure as to when this confirmation may be received but has secured short term measures to ensure the Company is sufficiently funded during this time."
Watermark would like to clarify this statement.
In order for the mines in the Central Basin to continue with their underground mining operations and to protect the Environmental Critical Level (ECL) it is imperative that an interim solution be implemented which will entail the establishment of an underground pump station and the refurbishment of the existing High Density Sludge (HDS) plant to treat the AMD emanating from the Central Basin. In order to address the short term needs for the Western Basin a pipeline should be constructed (7,7km) to connect the two basins which will extract and treat all the water from both basins through the newly established pump station and refurbished HDS plant.
WUC's expertise and information will be required by the mines to execute the above-mentioned interim plan and through this arrangement WUC will be able to charge the mines a management fee on a monthly basis.
WUC will thereby generate revenue in the short term whilst working together with the mines and Government in the establishment of the Public Private Partnership (PPP) to address the long term solution. This arrangement is however dependent on a decision from Government to proceed with the interim solution. Although the Company has been able to obtain short term financing whilst awaiting Government's decision on the model to address the issue of AMD with the mines, this funding is temporary and should the decision be delayed by more than three weeks the board will need to re-assess the Company's financial position.
Enquiries:
| Watermark Global | ||
| Dirk Kotze, Chief Financial Officer | Tel: + 44(0) 20 7233 1462 | |
| dkotze@watermarkglobalplc.com | ||
| Charles Zorab, Investor Relations | Tel: + 44(0) 20 7233 1462 | |
| czorab@watermarkglobalplc.com | ||
| Nominated Adviser | ||
| Cenkos Securities | ||
| Elizabeth Bowman/Beth McKiernan | Tel: +44(0) 20 7397 8900 | |
| Financial PR | ||
| Bishopsgate Communications | ||
| Robyn Samuelson/Giang Nguyen | Tel: +44(0) 207562 3350 |
watermark@bishopsgatecommunications.com
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