Last checked at 1 Jul 2015 09:49
01 July 2015
Kennedy Ventures plc
Completion of long term offtake agreement
Kennedy Ventures plc ("Kennedy Ventures" or "the Company") is pleased to announce the completion of a long term offtake agreement between its 75% held African Tantalum (Pty) Limited ("Aftan") and a major leading manufacturer of electronic components. Kennedy Ventures is focusing on tantalite production through its stake in Aftan, which owns and manages the Tantalite Valley Mine ("TVM") in Namibia.
Offtake Agreement
The leading manufacturer has agreed to take the full production from Aftan under a long term offtake agreement. Prices are in line with the market.
Aftan's mine is set to restart operations in July 2015 and to make first deliveries in October 2015.
The Market for Tantalite and Tantalum
Tantalite concentrates form the vast majority of feedstock for all tantalum products. As such they 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 supper 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.
Peter Hibberd, CEO of Kennedy Ventures commented:
"This is a significant step forward in the realization of creating a Namibian based producer of tantalite and products. With operations at the mine due to re-start shortly, we are pleased to have reached a supply agreement with a true market leader in this field. Since Aftan will be a high quality, low cost producer these offtake terms will ensure full sales and lock in profitability. In addition, this association affords a number of further potential opportunities to expand the reach of our tantalite business."
ENDS
For further information, please contact:
Kennedy Ventures plc
Peter Hibberd c/o Billy Clegg +44 (0) 020 3757 4983
Cenkos Securities
Derrick Lee / Nick Tulloch +44 (0) 131 220 6939
Peterhouse Corporate Finance +44 (0) 207 469 0935
Peter Greensmith
Camarco
Billy Clegg / Georgia Mann / Zoe Moulton +44 (0) 020 3757 6983