Ambrian PLC Project Update and Related Party Transaction (6263U)
July 30 2015 - 11:00AM
UK Regulatory
TIDMAMBR
RNS Number : 6263U
Ambrian PLC
30 July 2015
Ambrian plc
("Ambrian" or the "Company")
Project Update and Related Party Transaction
The board of Ambrian is pleased to confirm that mechanical
completion of the Beira cement plant and of the newly-installed
electricity substation in Mozambique (together, the "Plant"), in
which the Company has an interest through its subsidiary, Cimentos
de Beira Limitada ("CdB"), occurred on 29 July 2015. Testing of the
electricity substation will now proceed and a timetable will be
agreed with the state power utility for connection of the
substation to the main grid. This is expected to occur during the
first half of August, facilitating hot commissioning of the Plant
and commercial production by the end of the month.
As outlined in the Company's admission document dated 17
February 2015, mechanical completion of the Plant was originally
scheduled for the end of March and, in accordance with the
announcement issued by the Company on 15 May 2015, this timetable
was subsequently revised to the end of June. The further delay was
attributable to a number of factors, including various issues with
contractors, availability of qualified staff and response time from
regulatory bodies. As a consequence of these delays and certain
cost overruns, the Company now anticipates that cost to completion
of the Plant will increase from US$42.5 million to US$45.5
million.
However, the board of Ambrian believes that mechanical
completion is a key milestone in the progress towards commercial
production from the Plant and that the market for cement in central
Mozambique remains strong and will continue to grow. To ensure
early production is achieved on the best possible commercial terms,
CdB has recruited a commercial director who is familiar with the
cement market in central Mozambique and who will assume this role
prior to commercial production.
The board of Ambrian also confirms that Jean-Pierre Conrad,
Chief Executive Officer of the Company, made an advance of
EUR300,000 (the "Advance") to CGM (UAE) FZE ("CGM") on 24 June
2015. CGM is a wholly-owned subsidiary of Ambrian. The purpose of
the Advance was to expedite payment of certain invoices and
expenses incurred in connection with the Plant, specifically
payments to contractors and suppliers in order to allow work on key
aspects of the facility to be completed. No interest is payable by
the Company or its subsidiaries in respect of the Advance, which is
repayable by the Company on or before 31 December 2015.
In addition, Mr Conrad made two advances totalling CHF 200,000
(the "Initial Advances") to Ambrian Resources AG ("ARAG"), prior to
the completion of the Company's acquisition of the shareholding of
Consolidated General Minerals plc in Ambrian Metals Limited and Mr
Conrad's appointment as Chief Executive Officer of the Company.
ARAG is an 80% subsidiary of Ambrian and is a service company
through which certain of Ambrian's employees were previously
seconded to Consolidated General Minerals plc. The purpose of the
Initial Advances was to expedite payments of certain invoices and
expenses incurred by Ambrian Resources AG. No interest is payable
by the Company or its subsidiaries in respect of the Initial
Advances, which are repayable by the Company on or before 31
December 2015.
The Advance is classified as a related party transaction under
the AIM Rules for Companies. Accordingly, the independent directors
consider, having consulted with the Company's nominated adviser,
that the terms of the transaction are fair and reasonable insofar
as its shareholders are concerned.
For further information, please contact:-
Ambrian plc
Roger Clegg +44 (0)20 7634 4700
Cenkos Securities plc
Neil McDonald +44 (0)131 220 9771
Nick Tulloch +44 (0)131 220 9772
Notes to Editors
Ambrian is active in the physical trading of industrial metals
and minerals and holds a substantial interest in a cement mill in
Mozambique. Supported by its offices in London, Shanghai, Taipei
and Singapore, with further support from a network of agents in
North and South America, Asia and the Middle East, Ambrian provides
producers and consumers with its marketing insight whilst
emphasizing the financing and risk management aspect of its trading
activities. Investing directly in industrial assets supports and
strengthens Ambrian's physical marketing and value added activities
whilst diversifying its revenue base. Ambrian is quoted on the AIM
section of the London Stock Exchange under the ticker symbol
AMBR.
Further information on Ambrian plc is available on the Company's
website: www.ambrian.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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