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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Baobab Res. | LSE:BAO | London | Ordinary Share | GB00B19HQ991 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMBAO
RNS Number : 4177D
Baobab Resources PLC
29 January 2015
BAOBAB RESOURCES PLC
PROJECT UPDATE
29 JANUARY 2015
Baobab Resources plc (AIM: BAO) ('Baobab' or the 'Company') is pleased to provide the following update regarding the equipment, procurement, construction ('EPC') partner selection process and the participation interest of the International Finance Corporation ('IFC'), the Company's joint venture partner in the Tete Project.
EPC PARTNER SELECTION PROCESS & TEST WORK
The Company is nearing the conclusion of the selection process of a Chinese partner to conclude the Feasibility Study, to perform pilot scale test work and to provide an EPC contract proposal with industry standard process performance guarantees. Baobab has been in detailed discussions with leading steel industry specialists Sinosteel Equipment & Engineering ('Sinosteel') and The China Metallurgical Group Corporation ('MCC'). The Company expects to announce the outcome of this process in due course.
Baobab has also been conducting bench scale test work on a 1.5t iron ore sample with Beijing Shenwu Environment & Energy Technology Company Limited ('Shenwu'). Shenwu is one of the largest hi-tech enterprises in China, specialising in research, development and marketing of energy-saving and emission reduction innovation technologies. The test work is trialling an alternative reduction technology to the well-established rotary kiln process. Results are anticipated during March, after the Chinese New Year holiday period.
IFC DILUTION & CONTINUING COMMITMENT
The IFC has elected not to contribute its 15% of project expenses towards the Unincorporated Joint Venture ("UJV") for the 2014 calendar year. In terms of the provisions of the Unincorporated Joint Venture Agreement between Baobab and the IFC, the IFC will incur a dilution in their percentage participation rights in the UJV from the current 15% to 12.88%. The IFC remains a 3% shareholder in the PLC.
The IFC has given the Company the necessary assurances of its long term commitment to the development of Baobab's Tete project and that it intends to contribute its 12.88% of project expenses for the 2015 calendar year.
Commenting today, Ben James, Baobab's Managing Director, said: "With the technical merits of the project well-established in the PFS and subsequent DFS test work, Baobab's management team has been focused on investigating opportunities to reduce the initial capital expenditure required. By adopting Chinese procurement, a more technically and commercially favourable path to production may now be pursued. A process guarantee on the selected flow sheet will not only deliver enhanced project economics through improved capital efficiencies, but will also, by way of accessing associated financial institutions, significantly reduce the timeframe to financial close and subsequent project execution.
'The Company is also pleased to have the on-going support of IFC, an ideal development partner for a project of this scale in Africa."
ENQUIRIES
__________________________________________________________________________________
Baobab Resources plc Ben James: Managing Director +258 21 486 404 Jeremy Dowler: Chairman +44 1372 450529 Frank Eagar; Finance Director +27 76 753 5377 Canaccord Genuity Limited Neil Elliot +44 207 523 8000 Chris Fincken Tavistock Emily Fenton / Nuala Gallagher +44 20 7920 3150
ABOUT BAOBAB RESOURCES PLC
Baobab Resources is an exploration and development company focused on the Tete pig iron and ferro-vanadium project in Mozambique, in which the International Finance Corporation holds a 12.88% participatory interest. The Company has been listed on the AIM of the London Stock Exchange (ticker BAO) since 2007.
ABOUT SHENWU
The Beijing Shenwu Environmental & Energy Technology Corporation ('Shenwu') is one of the largest hi-tech enterprises in China specialising in the research, development and marketing of energy-saving and emission-reduction technology for global fossil fuel, ore resources and renewable energy consumption market.
ABOUT SINOSTEEL & MCC
Sinosteel Equipment & Engineering ('Sinosteel') is the engineering and construction subsidiary of Sinosteel Corporation, a Chinese state owned enterprise, primarily involved in mining, trading, equipment manufacturing and engineering. Sinosteel Corporation has extensive international experience and is directly involved in mining, with operations in Australia and South Africa. The company also provides equipment covering all aspects from mining to iron and steel making (including rotary kilns, sintering plants, submerged-arch furnaces, continuous casters and rolling equipment and power co-generation plants). In addition, the company offers refractories for the steel making, petrochemical, non-ferrous, cement, and glass industries.
The China Metallurgical Group Corporation ('MCC') is a publicly listed, state owned enterprise based in Beijing, China, and is one of the country's largest equipment manufacturers, engaging in EPC, natural resources exploitation, papermaking, equipment fabrication and real estate development. MCC is active internationally with mining/processing related EPC contracts and investments in Africa, Australia, Pakistan, Afghanistan and Papua New Guinea (the latter being the Ramu nickel / cobalt operation under construction where rotary kilns will be used for direct reduction).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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