Kennedy Ventures PLC Investee Company Operational Update (5338A)

TIDMKENV

RNS Number : 5338A

Kennedy Ventures PLC

27 March 2017

27 March 2017

Kennedy Ventures plc

Investee Company Operational Update

Kennedy Ventures plc ("Kennedy Ventures" or "the Company"), the AIM quoted investment company who, through its stake in African Tantalum (Pty) Limited ("Aftan"), has an interest in the Tantalite Valley Mine in Namibia ("TVM"), is pleased to provide an operational update from TVM.

Highlights:

 
 --   Successful visit to TVM by a leading manufacturer 
       of tantalum capacitors (the "Customer") as 
       well as Namibian Government officials, with 
       Aftan providing demonstrations of tantalum 
       recovery both at the plant and the product 
       room. 
 --   One metric tonne of product has been sold 
       by Aftan to the Customer and they have requested 
       an order of a further six metric tonnes for 
       delivery during the quarter to June as part 
       of a quality sampling programme. 
 --        Aftan's plant upgrades are progressing: 
             *    A solar powered pump was installed to pre-fill the 
                  main transfer dam, to reduce diesel usage and to 
                  ensure the Plant Water Storage Systems are always 
                  available via the Transfer Dam feed. 
 
 
             *    Thickener has been mounted and is being commissioned, 
                  which aims to reduce silt flowing to the main dam and 
                  adding essential water storage capacity. 
 
 
             *    Refurbished Crusher Jaws installed, allowing for 
                  proper sizing during operations and to bring more 
                  consistent feed to the circuit. 
 
 
             *    Added Quality Measurement Systems to all sampling 
                  points, allowing weekly reviews 
 --   A meeting between Aftan and local unions has 
       been successful, with full approval for an 
       extended shift granted. 
 --   Full commercial production at TVM is expected 
       to start in Q2 
 

Aftan's Mine Operations

In mid-February the Customer visited TVM to assess the progress that Aftan has made. Following the meeting, the Customer purchased one metric tonne of end product for testing. The Customer has now followed this initial purchase with a request for 6 metric tonnes for the quarter to June 2017 as part of a quality sampling programme to make certain the product suits their facilities and requirements. Ultimately, subject to the product meeting the Customer's required specifications, Aftan hopes to agree a permanent offtake agreement with the Customer. Furthermore, the Customer has introduced Aftan to the leading global tantalum powder smelter from Germany. The Customer has indicated that it will assist Aftan with developing this relationship.

Aftan has also successfully received approval from local unions to extend the shift time from eight hours to twelve, starting in the second week of April 2017, which is expected to allow full-scale commercial production at the mine to begin thereafter.

Plant Upgrades

As highlighted in the announcement of the 25(th) of January 2017, Aftan's plant has undergone a number of upgrades. The Company has since been advised that the most recent progress has been as follows:

 
 --   A solar powered pump was installed to pre-fill 
       the main transfer dam, reducing diesel usage 
       and ensuring the Plant Water Storage Systems 
       are always available via the Transfer Dam 
       feed; 
 --   Thickener has also been mounted and is currently 
       being commissioned with an expected completion 
       by March end, which is expected to reduce 
       the silt to the main dam as well as adding 
       water storage and distribution to the circuit; 
 --   Three more James Tables have also been added, 
       improving the mines ability to improve customer 
       demand per specifications; 
 --   The Crusher Jaws have been refurbished and 
       are being commissioned, to allow proper sizing 
       during operations to bring more consistent 
       feed to the circuit; and 
 --   Quality Measurement systems have been added 
       to all sampling points, allowing for weekly 
       reviews. 
 

Larry Johnson, CEO of Kennedy Ventures, commented:

"Aftan has made considerable progress in the year to date and is now in a position of strength both at the operational level and with onward sales. Aftan is confident that its product will meet the Customer's quality and specification tests and its work this calendar year means Aftan is now firmly positioned within a world-class supply chain. I expect the time spent over the last 6 months by Kennedy and Aftan ensuring TVM's operations are upgraded to the highest specification, to optimise output and quality - as well as to ensure the TVM is operating efficiently and cost effectively. In turn, we expect this will deliver value creation in the near and long term as Aftan aims for full scale commercial production in Q2 2017.

Aftan's management and I successfully met with the Namibian Miners Union, getting full approval to implement an extended shift from our current eight hours to twelve hours starting the second week of April. This allows Aftan to better utilise its labour, 99% of whom are Namibian, and provide for more wealth creation amongst the local community."

 
 Kennedy Ventures plc 
 Larry Johnson (CEO), c/o           Tel: [phone] 
  Camarco                            4983 
 Grant Thornton UK LLP (Nominated   Tel: [phone] 
  Adviser)                           5100 
  Colin Aaronson 
  Richard Tonthat 
  Daniel Bush 
 Shore Capital (Broker)             Tel: +44 (0) 207 
  Mark Percy / Toby Gibbs            408 4090 
  (corporate finance) 
  Jerry Keen (corporate broking) 
 Camarco (PR)                       Tel: +44 (0) 203 
  Gordon Poole                       757 4980 
  Billy Clegg 
  James Crothers 
 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCDZLFLDXFEBBQ

(END) Dow Jones Newswires

March 27, 2017 02:00 ET (06:00 GMT)