Last checked at 3 Jul 2015 14:26
Kennedy Ventures PLC
03 July 2015
Kennedy Ventures plc
Related Party Loan
Kennedy Ventures plc ("Kennedy Ventures" or the "Company"), which is focused on tantalite production in Namibia through its 75% holding in African Tantalum (Pty) Limited ("Aftan"), announces that on 13 November 2014 the Board approved an interest-free and unsecured loan facility of up to £200,000 (the "Loan") from Westleigh Investments Holdings Limited ("WIHL"). To date, £142,000 has been drawn down and applied towards enabling Aftan to enter into the offtake agreement announced by the Company on 1 July 2015 and certain other costs associated with facilitating the recommencement of operations at the Tantalite Valley Mine in Namibia.
WIHL is a company in which Giles Clarke and Nick Harrison, both of whom are directors of Kennedy Ventures, hold a beneficial interest of 73.28% and 26.72% respectively and as such the Loan is classified as a related party transaction under the AIM Rules for Companies.
The independent directors consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
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
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.