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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Union | LSE:URL | London | Ordinary Share | AU000000UCL4 | ORD NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 0.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
Union Resources Limited Joint Venture to Accelerate Development of Namibian Phosphate Key Points * A joint venture with Bonaparte Diamond Mines and Tungeni Investments will provide strategic and operational benefits that will consolidate development of significant portions of the off shore Namibian phosphate deposits. * Strongly complementary capabilities will allow lower cost and lower risk development while increasing coverage of a potentially large new mineral province. It will give the parties access to over 8000 km2 of highly prospective territory Union Resources Limited (UCL) is pleased to announce that it has entered into a Joint Venture Agreement (JVA) with Bonaparte Diamond Mines (BON) and the Namibian company Tungeni Investments (Tungeni) to jointly develop UCL's, BON's and Tungeni's combined marine phosphate tenements off the coast of Namibia. In the terms of the JVA, licenses held by UCL in its Sandpiper project and those held by BON/ Tungeni in their Meob and Rocky Point Projects will be transferred to a Joint Venture company to be held 42.5% each by BON and UCL and 15% by Tungeni. The Meob project holds licenses adjacent to UCL's Sandpiper project. Significant terms of the JVA are provided in the Appendix. The partners are firmly of the opinion that the Joint Venture (JV) will result in strategic and operational advantages that will benefit shareholders by generating greater value at lower risk than could be achieved by the companies acting individually. UCL's MD Frank Reid said "The JV offers the partners a more efficient, low risk and more cost-effective opportunity to rapidly develop a world-class rock phosphate project." Strategically, the JV will be very well placed to rapidly develop a new phosphate province in Namibia, and will control an area of up to 8000 km2 of the most prospective areas. As the JV emerges as a substantial, non-government, independent producer of rock phosphate, it will become attractive as a supplier to downstream customers for rock phosphate who are not vertically integrated back to their own mines. Initial pilot plant investigation has shown that a good merchant grade phosphoric acid can be produced via standard phosphoric acid circuits using material from the area. The JV will also provide significant operational advantages. It will allow for a co-operative approach to accessing and developing limited shore-based infrastructure in Namibia and will allow a coordinated approach to regulatory requirements such as permitting and environmental management. Furthermore, the skills and data sets that exist within the partners' organizations are complementary, and combined with administrative and regulatory streamlining, will greatly accelerate project development. Dr. Reid added, "With several new phosphate projects recently being announced, the accelerated implementation expected to result from the JV will confer a significant market advantage." UCL has significant experience with large resources companies and access to excellent project development and processing skills. It also has existing relationships with critical technology providers. BON has substantial experience in marine resource development and mining in the Namibian off-shore environment, while the Namibian partner, Tungeni, has sound experience in guiding corporate development in Namibia. The nature of the resource will also facilitate rapid implementation, since the deposit is geologically uncomplicated, comprising unconsolidated phosphatic sediments. Beneficiation of the run of mine material appears to be quite simple with concentrate for pilot plant work being prepared by screening and sizing with hydro-cyclones. The rapid development of an initial 3 mtpa rock phosphate operation is a top priority for the JV management team, with a substantial increase to 6 mtpa from the combined tenements, subject to market demand. Management of the JV Partners considers that the project has a realistic potential to be in production by 2011. BON's MD Mike Woodbourne said:" The combined assets and experience base of the JV companies provides us with the best prospect of seizing the key market advantage of becoming the next large phosphate producer". Tungeni's MD Tonata said "We welcome the opportunity to develop a new mining sector in Namibia, which has been independently rated as one of the top investment destinations in Africa". James Collins-Taylor Chairman Notes to the Editor: Bonaparte Diamond Mines NL ("BON") is an Australian Securities Exchange (ASX) - listed Australian company. Its principal activities are diamond mining and diamond and phosphate exploration. Its relevant expertise includes marine mining exploration. BON has projects in Namibia, South Africa and Australia. Tungeni Investments cc ("Tungeni") is a Namibian company. Tungeni is a joint venture partner with BON in the Meob Phosphate Project in Namibia, holding a 30% interest. Appendix 1 Significant Terms BON, UCL and Tungeni have agreed to associate in a JV for the purpose of commercial development and exploitation of their respective marine phosphate exploration licences off the coast of Namibia. The significant terms of the JV Agreement (JVA) are as follows: 1. JV company - A Namibian registered joint venture company (PHOSCO), to be owned 42.5% Bonaparte, 42.5% Union and 15% Tungeni , will be registered within 30 days of execution. 2. Transfer of licenses - Exclusive exploration licenses held by Union in its Sandpiper project (EPL3414 , EPL3415) and those held jointly by Bonaparte and Tungeni in their Meob Project (EPL3323, EPL4009, EPL4021 and EPL applications EPL4010, EPL4059, EPL4060) will be ceded and transferred to PHOSCO by due process with the Namibian Ministry of Mines and Energy. Bonaparte and Tungeni must jointly contribute a minimum of 4 granted exploration licenses to PHOSCO. In the event that two or more of the BON/ Tungeni licenses under application are not granted then to make up this minimum then they will cede additional licenses from their other jointly held, granted exclusive prosecting licenses. 3. Shareholders agreement - a shareholders' agreement , base terms for which are agreed in the JVA , will be put in place within 3 months following incorporation of PHOSCO to regulate shareholders' rights and obligations as well as the management and business activities of PHOSCO. 4. Bonaparte will assist Union and will fund 50% of all direct costs to achieve definition and classification of a JORC compliant Mineral Resource in Union's Sandpiper Project licence areas. Bonaparte will be appointed to manage this process. 5. Bonaparte will continue at its sole cost to complete its 2008 sampling programme within its Meob Project licence area EPL3323 up to classification of a Mineral Resource in accordance with the JORC Code in respect of all or part of such area. 6. Thereafter, exploration and development costs on all licenses in PHOSCO will be shared equally between Bonaparte and Union up to bankable feasibility study with Tungeni's costs contribution being accrued as a loan. Thereafter Tungeni will contribute pro rata to costs with a loan to be repaid from first cash flow from PHOSCO. 7. BON and UCL shall each be entitled to a management fee for input of specialist services to PHOSCO, at an agreed schedule of fees and total of which shall not exceed 15% of actual operating costs for PHOSCO in any one year 8. Union will pay all the costs and expenses related to the completion of its acquisition of the UCL Licenses and disclosed interest of related 3rd parties shall be accommodated outside PHOSCO. Bonaparte will pay all costs related to application and issue of its licenses in the Meob Project area. 9. PHOSCO will take over the obligation to pay a royalty, equal to 3% of gross revenue (capped at US$10 million) derived from the sale of product mined from the Union Licenses. 10. Any party may withdraw from this JVA within 2 years if: 11. a. Either Union or Bonaparte/Tungeni are unable to complete and report classification of at least an Inferred Mineral Resource of greater than 50 million tonnes at greater than 10% P2O5 concentration, in accordance with the JORC Code in respect of all or part of their respective licenses; or b. If Renewal of Union's EPL3414,or 3415 and Bonaparte/Tungeni's EPL3323 is not granted or if all or part of these licenses is not converted to a mining licence. 11. This JVA will be conditional on the approval of its terms by the Minister responsible for the administration of the Minerals (Prospecting and Mining) Act 1992 of Namibia within 12 calendar months following its execution or such later date as the Parties may agree in writing. 12. UCL BON and Tungeni agree that they will, at an appropriate time, transfer ownership of PHOSCO to a non-Namibian vehicle in order to facilitate quotation of PHOSCO's shares upon the official list of a recognised stock exchange. 13. The Joint Venture agreement will be governed by the laws of Western Australia For further information: Australia: Union Resources Limited Mr John Lemon - Company Secretary Phone: +61 7 3833 3833 London: Hanson Westhouse Limited Bill Staple or Martin Davison 020 7601 6100 Bankside Consultants Simon Rothschild or Louise Mason 020 7367 8888 END
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