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11 May 2011 15:05
Watermark Global Plc
("Watermark" or "the Company)
11 May 2011
The Board of Watermark (AIM: WET.L) notes the recent share price movement and wishes to provide shareholders with an update on the situation regarding the Acid Mine Drainage ("AMD") project in South Africa, currently being progressed by its wholly-owned subsidiary, Western Utilities Corporation (Pty) Ltd. ("WUC")
WUC submitted its long term sustainable solution to the Department of Water Affairs (DWA) in February 2010 based on the completion of its Bankable Feasibility Study and the Final Scoping Report of the Environmental Impact Study in 2009. After numerous discussions with the various regulators, a revised proposal was submitted in July 2010 which addressed concerns raised by the DWA on the initial submission. The Minister of Water Affairs appointed an Inter-Ministerial Committee (IMC) to evaluate various proposals and implement an action plan. In February 2011, the DWA, through the IMC, appointed the Tans-Caledon Tunnel Association (TCTA), which is a quasi state organization tasked with implementation of critical infrastructure with specific reference to bulk water supply, as its implementation agent. TCTA's role is to implement a short term solution to prevent AMD from causing further damage to the environment. WUC has been discussing with the TCTA to assist in the short term solution whilst at the same realizing value for its shareholders. However, the Group has focussed, and will continue to focus, on the implementation of a long term sustainable solution. It is our understanding that the long term solution will form part of a DWA tender process in which WUC has every intention to participate.
The board is still of the view that WUC has a significant advantage over its competitors. Unfortunately Watermark cannot provide defined timeframes associated with the short and long term solutions or the processes to be followed. These timeframes will be determined by DWA but it is anticipated that both the short term solution and the long term tender will commence in 2011.
The Company hopes to release its financial results for the year ended 31 December 2010 in the last week of May 2011.
Enquiries:
| Investor Relations | ||
| Charles Zorab | Tel: + 44(0) 20 7233 1462 | |
| czorab@watermarkglobalplc.com | ||
| Nominated Adviser: Cenkos Securities | ||
| Ian Soanes/Elizabeth Bowman | Tel: +44(0) 20 7397 8900 |
Copyright Business Wire 2011
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