Last checked at 1 Sep 2015 08:22
1 September 2015
Kennedy Ventures plc
("Kennedy Ventures" or the "Company")
Aftan Purchases Remaining 40% Stake in Tantalite Valley Project
Kennedy Ventures, which is focused on tantalite production in Namibia through its 75% holding in African Tantalum (Pty) Limited ("Aftan"), is pleased to announce that Aftan has entered into a purchase agreement (the "Agreement") with Magnum Mining and Exploration Limited ("Magnum") to acquire the remaining 40% interest in the Tantalite Valley Project ("TV Project") in Namibia, a mine which it is intended will be brought back into production of tantalite, for a cash consideration of R7 million (c.£0.35m).
All conditions associated with the Agreement have been met and following completion, which is expected to occur on or before 7 September 2015, Aftan will own 100% of the TV Project through its two subsidiaries.
Tantalite Valley Project and the Tantalum Market
The Tantalite Valley Project will be Aftan's first mine to come into operation. Mining from the high grade ores at the mine site in southern Namibia is on track to commence in Q3 2015, with first delivery of production from Aftan to its offtake partner, a leading manufacturer of electronic components on track, for the beginning of Q4 2015.
Tantalum's usage is based on its unique properties and ability to perform under high temperatures while remaining chemically inert. As such it is virtually indispensable for a wide range of modern electronics applications such as computers, tablets, mobile phones, motor components and gaming systems. It has further application in alloys, medicine and specialised equipment production.
Peter Hibberd, CEO of Kennedy Ventures commented:
"We are pleased to conclude this agreement at this time as the Tantalite Valley Mine is being prepared for production. The re-commissioning of the mine is on track and within budget to commence production in the current quarter. This agreement enables Aftan to become sole owners of the operating and title companies and will create further value for Kennedy Ventures' shareholders."
ENDS
For further information, please contact:
Kennedy Ventures plc | 020 3757 4983 | |
Peter Hibberd c/o Billy Clegg | ||
Cenkos Securities (Nominated Adviser and Joint Broker) | 0131 220 6939 | |
Derrick Lee / Nick Tulloch | ||
Shore Capital (Joint Broker) | 020 7408 4090 | |
Mark Percy / Toby Gibbs (corporate finance) | ||
Jerry Keen (corporate broking) | ||
Peterhouse Corporate Finance (Joint Broker) Duncan Vasey | 020 7469 0935 | |
Camarco | ||
Billy Clegg / Georgia Mann / Tom Huddart | 020 3757 6983 |
Notes to editors
Tantalite concentrates form the vast majority of feedstock for all tantalum products. As such they are critical and unreplaceable parts of a wide range of modern electronics including computers, tablets, mobile phones, motor components and video game systems.
Aside from electronics, tantalum has significant usage in super alloys, specialised steels, corrosion resistant equipment and medicine.
Tantalum's applications are based on its unique physio - chemical properties. The oxides and metal have extremely high melting points, high heat conductivity and strong resistance to corrosive environments. Combined, these factors have entrenched its international demand and made it an important component of numerous research projects and new technologies.
Trade pricing is following tantalum markets as per Asian Metals and Metal Pages.
In August 2012, the US Securities and Exchange Commission adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require companies reporting to the SEC to publicly disclose the origins of the tantalum they buy in order to restrict the use of conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country. As a result, users of tantalum are encouraged to demonstrate that their supply chain is transparent to ensure that conflict-free tantalum is procured.
It is intended that the tantalum produced by Aftan will be conflict-free.