2 Jun 2010 07:00
Equatorial Palm Oil plc / Index: AIM / Epic: PAL / Sector: Food Producers
2 June 2010
Equatorial Palm Oil plc ('EPO' or 'the Company')
Shipment of palm oil processing mill
Equatorial Palm Oil plc, the AIM listed Liberian focussed sustainable oil palm plantation developer, is pleased to announce that the Company's first palm oil processing mill is now in transit from Malaysia and is expected to be delivered to Liberia by the end of July. On arrival at Monrovia, the mill will then be transported by road to the Palm Bay Plantation ('Palm Bay'), which is the first of three areas scheduled for production within the Company's 169,000 hectare land position.
The oil processing mill, with a rated throughput of five tonnes of fresh fruit bunches per hour, was manufactured by Modipalm Engineering Sdn. Bhd, a leading Malaysian manufacturer of palm oil mills. Crude Palm Oil ('CPO') will be produced from fruit obtained from the on-going reactivation of 3,000 hectares of plantation at EPO's Palm Bay Plantation in Liberia, providing cash flow for the Company in Q4 2010.
EPO Chairman Michael Frayne said, "The mill will allow us to generate revenues from fruit bunches harvested from 3,000 hectares of existing plantation currently being rehabilitated at Palm Bay and represents an essential step in establishing EPO as a producer of CPO. Having initiated the rehabilitation process at Palm Bay, commenced establishment of our seedling nurseries and now employing over 200 people to work across EPO's plantations, we are moving towards our first production and sale of CPO. Revenues generated will be reinvested in our active development plan which is aimed at maximising the value of our c.169,000 hectare land position. Importantly, sales will further improve our balance sheet which was recently boosted by the £5 million investment by BioPalm Energy Ltd, a fully owned subsidiary of Indian conglomerate The Siva Group."
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For further information please visit www.epoil.co.uk, www.modipalm.com.my, or contact:
| Michael Frayne | Equatorial Palm Oil plc | Tel: 020 7766 7555 |
| Peter Krens | Mirabaud Securities LLP | Tel: 020 7484 3510 |
| Pascal Keane | Shore Capital & Corporate Limited | Tel: 020 7408 4090 |
| Edward Mansfield | Shore Capital & Corporate Limited | Tel: 020 7408 4090 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Paul Youens | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
Notes to editors:
About Equatorial Palm Oil
EPO's objective is to become a producer of sustainable, low-cost CPO and to this end it has extensive operations located near the coast in Liberia, West Africa. The Company's operational strategy is expected to be implemented through three core business activities: the rehabilitation of existing oil palm plantations; the development of new plantations; and the development of out-grower small holdings. The Company has secured Government ratified Investment Agreements in Liberia for the investment, rehabilitation and participation by the Group over a sizeable acreage of existing oil palm plantations. EPO's operations have already commenced at the Butaw Plantation and Palm Bay Plantation.