19 Oct 2010 07:09
| Press Release | 19 October 2010 |
Pan Pacific Aggregates plc
("PPA" or the "Company")
Pan Pacific Aggregates Selected to Negotiate an Agreement
to Operate Shaw Sand and Gravel Pit
Pan Pacific Aggregates plc (AIM:PPA), an operator of quarries in British Columbia, today announces that at a council meeting at District of Mission last night, the District approved a recommendation that "staff be authorized to negotiate and execute an agreement with Pan Pacific Aggregates Ltd to extract aggregate from Shaw Pit over a ten year period"
Shaw Pit is an existing sand and gravel pit owned and operated by the District Of Mission.
In November 2009 the District advertised a Request for Proposals (RFP) asking for financial offers to take over the operation of the pit, together with solutions which met a number of technical issues in order to bring the operation up to current best practice, such as a new access road and noise reduction measures.
PPA made two financial offers of which one has been recommended out of a total seven received. This offer gives the District the highest net present value and appears to meet all technical requirements. PPA's winning offer involves paying for the first 350,000 marketable tonnes up front with a payment of C$525,000 (C$1.50 per tonne) on entering into the agreement. Once this material is exhausted PPA will pay for further reserves on a royalty basis of C$1.50 per tonne
It is expected the agreement will last for ten years and involves extraction and processing of approximately 2,500,000 tonnes over this period.
Further details can be found under the District of Mission website: www.mission.ca
It is expected that negotiations should lead to an agreement being signed in Q1 2011 with production commencing in Q2 2011.
The District of Mission is located adjacent to the City of Abbotsford on the north bank of the Fraser River.
- Ends -
For further information:
| Pan Pacific Aggregates plc |
|
| William Voaden, Managing Director | Tel: +44 (0) 20 7398 7715 |
Nomad and Joint Broker:
| Matrix Corporate Capital LLP |
|
| Louis Castro / Tim Graham | Tel: +44 (0) 20 3206 7000 |
Joint Broker:
| XCAP Securities PLC |
|
| John Grant / Tim Burge / David Newton | Tel: +44(0) 20 7101 7070 |
| VSA Capital Limited |
|
| Andrew A Monk | Tel: +44 (0) 20 7096 9580 |
Media enquiries:
| Abchurch Communications Limited |
|
| Henry Harrison-Topham / Nick Probert | Tel: +44 (0) 20 7398 7715 |
| nick.probert@abchurch-group.com | www.abchurch-group.com |
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