Operations Update (2574D)
March 21 2011 - 3:00AM
UK Regulatory
TIDMCGM
RNS Number : 2574D
Consolidated General Minerals PLC
21 March 2011
CONSOLIDATED GENERAL MINERALS PLC
Planned Construction of a Cement Plant in Mozambique
21 March 2011 - Consolidated General Minerals plc ("CGM" or the
"Company") announces that since the appointment of new management
it has made rapid progress towards implementing the investment
strategy approved by shareholders at the AGM on 16 December
2010.
CGM's first investment is planned to be the construction of a
clinker grinding and cement packing plant in the port of Beira,
Mozambique. The plant will have a design capacity of 110 tonnes of
cement per hour and will be built for an estimated capital cost of
US$24 million. It is anticipated that the plant will supply the
growing local market and certain export markets in landlocked
Zimbabwe, Zambia, Malawi and Katanga Province (DRC).
CGM is in advanced discussions for the formation of a
joint-venture with Calme SpA, a private Italian cement producer to
build and operate the Beira plant. The joint-venture's intention is
to develop and operate a number of similar cement facilities in
other countries in sub-Saharan Africa. The Company has also
initiated discussions for debt finance to support the project.
CGM has purchased a 10 acre site for the construction of the
cement plant in the immediate vicinity of the port of Beira with
good access to road and rail infrastructure for a maximum
consideration of US$880,000, subject to certain qualifying events .
It is anticipated that the land will be owned by the joint-venture
company. Engineering design is well advanced and preparatory work
on the site, including an environmental impact study will be
initiated in the coming weeks.
CGM is confident of obtaining approval to commence construction
of the plant from the Council of Ministers in Mozambique in the
near future once the simplified environmental report and management
plan have been approved. Once the necessary governmental approvals
have been received the construction of the plant is expected to
take 15 months.
The Company is awaiting guidance from the London Stock Exchange
as to whether the suspension in trading of the Company's ordinary
shares will be lifted prior to 31 March 2011, failing which trading
of CGM's ordinary shares on AIM will be cancelled. The Company
believes that its venture in Mozambique represents sufficient
progress aligned to its investing policy to create shareholder
value by identifying and acquiring holdings in businesses and
ventures active in natural resources with a particular focus on the
minerals (including industrial minerals) and metals sectors.
However if Company's admission to AIM is cancelled, the Company
will seek admission of its shares within the next 12 months on a
European or North American exchange either by applying for
admission or through a corporate transaction.
For further information contact:
Consolidated General Minerals plc
Robert Adair +44(0)7872 930 114
Chairman
Jean-Pierre Conrad +41 (0)79 601 51 59
Chief Executive
Brewin Dolphin (Nomad)
Alex Dewar +44(0) 131 529 0276
Threadneedle Communcications
Laurence Read +44 (0)20 7653 9855
Notes to Editors:
Consolidated General Minerals plc's ("CGM") investment policy is
to create shareholder value by identifying and acquiring holdings
in businesses and ventures active in natural resources with a
particular focus on the minerals (including industrial minerals)
and metals sectors. At 31 December 2010 CGM had cash of US$21.1
million, net assets of $20.9 million and no long-term debt or
borrowings. As of the date of this announcement, CGM had cash of
US$20.5 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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