4 Jul 2013 07:00
AIM: FOX | 4 July 2013 |
Fox Marble Holdings plc
("Fox Marble" or the "Company")
Acquisition of additional quarry rights
Fox Marble, the AIM listed company focused on marble quarrying in Kosovo and the Balkans region, is pleased to announce that, in line with its long term strategy to expand its portfolio, it has acquired rights to two further quarries, one in Macedonia and the other in Kosovo.
Prilep quarry
Fox Marble has entered into an agreement to operate a quarry in Prilep, Macedonia. The agreement is for a period of 20 years with an irrevocable option to extend the period for a further 20 years thereafter.
The Prilep quarry contains the highly desirable white Sivec marble, currently available from only one other quarry in the world, which lies adjacent to the Prilep quarry. This type of marble has recently been used in a number of prestigious projects, including the construction of the Grand Mosque in Abu Dhabi.
The Prilep quarry is controlled by a local partner who has appointed Fox Marble to operate the quarry on its behalf. Fox Marble will receive 25% of the gross revenue from the sale of all block marble from this quarry, without having to fund the cost of equipping or having to invest in the reopening of the quarry, which has produced white Sivec in the past. Fox Marble will be responsible for the costs associated with extracting the marble from the quarry. Once Fox Marble's production plant is operational, the Company intends to cut and polish the blocks at this facility.
The quarry adjacent to the Prilep quarry currently produces the same white Sivec marble. This white Sivec is priced at between €300 per tonne and €1320 per tonne, dependent on the grade. A cubic metre of white Sivec weighs 2.8 tonnes.
Malesheva quarry
Fox Marble has acquired the rights to the Malesheva quarry in Kosovo from a local company. The licence to the quarry is for 20 years with an irrevocable option to extend the period by a further 20 years thereafter. Fox Marble will pay a royalty of 21% on net revenue generated from the sale of block marble
The Malesheva quarry contains large quantities of grey/white and cream marble, similar to crema marfil. The long term agreement allows Fox Marble to develop and operate the quarry, in order to extract the marble.
Chris Gilbert, Chief Executive of Fox Marble, said: "White Sivec is one of the most desirable marble types in the world today and we believe that demand for the marble will be strong. Our rights extend to 350 hectares across the stone body in this location and our long term tenure will amply reward our shareholders over time."
Enquiries:
Fox Marble Holdings plc | |
Christopher Gilbert, Chief Executive Officer Fiona Hadfield, Chief Financial Officer | Tel: +44 (0) 20 7380 0999 |
Fox Davies Capital Limited (Nomad and Joint Broker) | |
Susan Walker/Jonathan Evans | Tel: +44 (0) 20 3463 5000 |
Sanlam Securities UK Limited (Joint Broker) | |
Lindsay Mair/Richard Goldsmith | Tel: +44 (0) 20 7628 2200 |
Buchanan | Tel: +44 (0) 20 7466 5000 |
Mark Court / Fiona Henson / Sophie Cowles | www.buchanan.uk.com |
Notes to editors:
Fox Marble Holdings PLC is an AIM quoted natural stone extraction company operating in Kosovo and the Balkans region, with headquarters in the United Kingdom.
The Company has been granted mining licences in relation to five separate marble quarries and completed a maiden JORC resource indicating an in-situ valuation of approximately Euro 16.5 billion. Established in 2011, Fox Marble has access to over 300 million cubic metres of premium quality marble including white breccia and honey yellow onyx.
Fox Marble also has rights to extract grey marble from the Drini quarry and cream and white grey marble from the Malesheva quarry, both in Kosovo and white Sivec marble from the Prilep quarry in Macedonia.