27 Sep 2010 08:11
Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining
27 September 2010
Beacon Hill Resources Plc ('Beacon Hill' or 'the Group')
Off-take Agreement and Strategic Investment at Mozambique Coal Mine
Beacon Hill Resources plc (AIM:BHR), the AIM listed resource group, is pleased to provide an update regarding the proposed off-take and strategic partnership with Global Coke Limited ('Global Coke') with regard to Minas Moatize, its Mozambique coal mine, announced on 19 July 2010.
The process to complete the agreements with Global Coke is on-going and all parties remain confident that these will be concluded shortly. They are in an advanced stage with the delay in their finalisation primarily due to the numerous international jurisdictions that the agreements cover. All parties have reconfirmed their desire to conclude the transaction, including the agreed valuation of the US$55 million investment and terms of the off take agreement. Accordingly the Board looks forward to updating the market on progress in the near future.
Beacon Hill Chairman Justin Lewis said, "All parties remain confident that we can finalise the transaction in the near future. Once this happens, the agreements will represent a further step in devolping our Mozambique coal assets and generating defined cash flow. The off-take at gate will allow us to focus primarily on the extraction process and the construction of our open pit operation scheduled to be completed next year. In line with this, the confirmation of the funding arrangements will dramatically de-risk the project financially and will allow investors to clearly understand the potential value uplift through our structured development path."
For further information on the Group, visit: www.bhrplc.com or contact:
| Justin Lewis | Chairman, Beacon Hill Resources Plc | +61 (0) 3 8637 1540 +61 439 162369 |
| William Vandyk | Astaire Securities Plc | +44 (0) 20 7492 4750 |
| Charles Vaughan | Astaire Securities Plc | +44 (0) 20 7492 4750 |
| Hugo de Salis | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
| Susie Callear | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
**ENDS**