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7 Dec 2010 07:00
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7 December 2010
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Weatherly International plc
('Weatherly' or the 'Company')
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Operations Update
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HIGHLIGHTS
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Β·; Heads of Agreement with prime contractor for Matchless copper mine in Namibia.
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Β·; Mobilisation of contractors at both Otjihase and Matchless.
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Β·; Initial export licence for copper concentrate granted by government of Namibia.
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Β·; Proceeds from sale of Kombat have been received.
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CENTRAL OPERATIONSΒ
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Further to its recent announcements concerning the re-start of mining at its Otjihase and Matchless copper mines in Namibia (the 'Central Operations'), Weatherly today announces the signing of a heads of agreement with Shali, a local mining contractor. Under the heads of agreement, Shali is contracted to carry out all of the mining activities at the Matchless mine. Shali will invoice Weatherly on a $/t of ore basis for ore delivered to the surface stockpile, with appropriate governance mechanisms in place to control safety and dilution. The first of the Shali employees have mobilised this week to prepare the site for a restart of mining activity in early Q1 2011.
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Meanwhile at Otjihase, the prime local contractor, Breda Mining Contractors, now has approximately 35 people working underground to prepare for production restart. Another contractor, Fraser Alexander Pty Ltd, has employees on site preparing the tailings storage facility and backfill plant for use.
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Further appointments are expected in the coming weeks with respect to ore transport from Matchless to Otjihase, concentrate transport, concentrator maintenance and operation, and laboratory services. All these appointments are consistent with Weatherly's philosophy of awarding discrete manageable contractsΒ to improve accountability and maximize operating efficiencies while retaining direct control of elements such as mine planning and grade control.
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Weatherly's application to export concentrate from Namibia for processing for the period up until the end of March 2011 has been granted. Export permits are only granted for 6 month increments for Q4/Q1 and Q2/Q3. Weatherly therefore has a permit to export until end of March 2011 and will routinely apply each February and August for 6 month extensions.
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SALE OF KOMBAT
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Weatherly is pleased to confirm that it has received the final payment of US$3m from the sales of Kombat, in accordance with the revised payment schedule announced on 4 November 2010.
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Β ENDS
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For further information, please contact:
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Rod Webster, Chief Executive Officer, Weatherly International Plc
+44 (0) 20 7917 2989
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Samantha Harrison / Jen Boorer, Ambrian Partners Limited
+44 (0) 20 7634 4700
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Carina Corbett, 4C Communications (Investor Relations)
+44 (0) 20 7559 6715
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