Royal Mail RMG Letter revenue in the 3 months to the 24th June fell 7% but GLS continued to perform strongly, with volumes up 10% and revenue up 11%. The Quality of Service performance has been so bad and has impacted the company to such an extent that on the 1st June Ofcom commenced an investigation into it for the 2017-18 financial year. The outlook for addressed letter volume is not good and the expected decline of between 4-6% per annum may be exceeded and in GLS margins may be impacted by continuing labour market pressures. One brighter area was parcels where revenue rose 6% and volume 7%.
Talk Talk Communication Group TALK delivered strong customer and Headline revenue growth in the first quarter to the 30th June as momentum continued. Performance and demand in the various divisions is described as being strong or solid. Taking into account the ongoing cost reduction programme,this is expected to produce annual EBITDA growth of 15%.
Dairy Crest Group DCG updates that sales of its four key brands in the 3 months to the 30th June were 6% higher than last year. The two largest brands, Cathedral City and Clover, continued to outperform with revenue growth of 10%. This was true generally for spreads which continued to go from strength to strength, whilst the butter market remains challenging. The full year outlook remains unchanged.
Galliford Try GFRD expects to report strong pre-exceptional results, after a strong underlying performance for the year to the 30th June. At Linden Homes the average private sales price, rose 4% to £367,000.and a further significant improvement in margins is expected. A total of 3,442 units were completed, up from 2017’s 3,296 units.
Clinigen Group CLIN has performed strongly in the year to the 30th June, with reported revenue rising by 26%. Commercial medicines had an excellent year. It is anticipated that results will be in line with market expectations and that in the coming year there will be further growth across all parts of the business.
Cadence Minerals #KDNC – Bacanora Lithium #BCN announces strategic investments of US$90m & proposed placing to raise US$100m.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the strategic investments announced today by Bacanora Lithium (AIM:BCN). Conditional strategic investments have been agreed with the State General Reserve Fund of Oman (“SGRF”), the sovereign wealth fund of the Sultanate of Oman and from Bacanora’s off-take partner, Hanwa Co., LTD (“Hanwa”), for a combined total of US$90m (‘the Investments’). The Investments comprise US$65m from SGRF and US$25m from Hanwa and are part of the proposed funding package for the development of an initial 17,500 tpa lithium carbonate (“Li2CO3”) operation at the Sonora Lithium Project in Mexico (“Sonora” or the “Project”) and are conditional on the full US$460m construction funding required for the Project (“Construction Funding”) being in place. These investments follow on from the US$150m senior debt facility previously secured with Red Kite Mine Finance, one of the leading specialist mining lenders.
- SGRF’s commitment to conditionally invest US$65m upon completion will further validate Sonora’s potential to become a leading supplier of high value lithium products to fast-growing industries, such as electric vehicles and energy storage, and once completed will significantly strengthen Bacanora’s funding platform for the construction of a 17,500tpa Li2CO3 operation
- Hanwa’s stated intention to conditionally invest US$25m upon completion will further validate the quality of battery grade (+99.5%) Li2CO3 produced at Sonora and upon completion will secure access to the Japanese market
- The Investments follow the US$150m senior debt facility secured with RK Mine Finance, one of the leading specialist mining lenders – see announcement of 4 July 2018
- Upon completion the Investments will bring the combined equity and debt funding commitments secured to date to US$240m – 52% of the US$460m required for Stage 1 production of 17,500 tpa of Li2CO3 at Sonora, comprising US$420m capital costs and US$40m for working capital
- SGRF’s commitment is alongside an off-take agreement which, upon completion of the investment will provide SGRF with the option to buy 10,000 tpa of Li2CO3 once capacity at Sonora is expanded to 35,000 tpa of Li2CO3 as part of Stage 2 of the Project
- The Conditional Strategic Investments follow the favourable Feasibility Study which assigned a pre-tax US$1.253 billion NPV8 to a 35,000 tpa battery grade Li2CO3 operation at Sonora; a pre-tax Internal Rate of Return of 26.2%; and Life of Mine operating costs of US$3,910/t of Li2CO3.
The full strategic investment release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13719306.html
Cadence Minerals also notes that Bacanora Lithium has announced a proposed placing to raise gross proceeds of US$100m by way of a placing (the “Placing”) of new ordinary shares in the Company (the “Placing Shares”). The combination of the Placing proceeds and the initial US$25m drawdown from the previously announced US$150m Red Kite Mine Finance senior debt facility (“RK Facility”) will give the Company sufficient funds to begin construction on the Project, the intended commissioning for which is in Q1 2020.
- The primary purpose of the Placing is to provide Bacanora with sufficient funds to begin construction of the Project by ordering the long lead items and beginning the required civil works.
- The gross proceeds from the Placing will allow the Company to continue towards its stated intention of commissioning the Project during Q1 2020.
- The issue of the Placing Shares is structured as a placing of new ordinary shares pursuant to the authorities granted at the Company’s General Meeting held on 16 February 2018.
- The timing of the closing of the Bookbuild and the final number and allocation of the Placing Shares to be issued are to be determined at the discretion of the Company and the Bookrunner.
- Following the closing of the Bookbuild, a further announcement will be made confirming final details of the Placing.
Bacanora is a lithium exploration and development company. Cadence holds approximately 8% of Bacanora’s equity and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.
The full placing release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13719307.html
Cadence Minerals CEO Kiran Morzaria commented: “Following on from last week’s senior debt funding package announcement, today sees Bacanora take two additional and hugely significant steps towards the start of the construction phase of the Sonora Lithium project in Q3 2018.”
“Securing additional backing from existing strategic partner Hanwa and new funding from a blue chip investor of the calibre of SGRF further underscores the quality and longevity of the Sonora Lithium project. Along with the $100m placing, Bacanora looks set to complete its funding package by early 2019. On behalf of myself and Cadence Minerals, we congratulate Peter Secker and his team for achieving this milestone today”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
– Ends –
For further information:
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £20 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identiﬁed by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reﬂect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
Zafar Karim, executive Chairman of Legendary Investments PLC (LON:LEG), explains to Proactive Investors how they unlock private opportunities which aren’t available to public investors.
Want to learn more about swing trading? Check out www.vectorvest.co.uk/swingtradejuly.
Finsbury Food FIF Once you read that the group has done well in accelerating the reshaping of its asset footprint during the year to the 30th June, you know that it has had problems. Meaningless jargon is always a sign of a management lost for words even if it does manage to claim that its performance has been resilient. In fact so resilient that sales, taking into account closed businesses, declined by 3.4% and even the 50% owned European business saw a drop of 0.7%. On a like for like basis group sales rose by 2.4% and FIF is confident that it will deliver profits in line with expectation. The trading environment was very challenging with unprecedented commodity and labour inflation.
Inland Homes INL updates that growth in both revenues and homes delivered and under construction was strong during the year to the 30th June. Good quality also helped customer demand to remain strong, as did an average affordable selling price of 293,000 per unit. Open market completions rose by 46.3% and revenue by 66.7% but as for the future there seems to be a cloud on the horizon, with forward sales as at the trading update down by 23.1%
Plant Health Care PHC Is on track to achieve full year revenue expectations, which would represent 30% growth over 2017. In Brazil, Harpin αβ was launched in February 2018 for use on sugarcane and demonstration field trials showed an average yield increase of over 20% whilst n the USA, an agreement has been reached which will give Harpin αβ access to the large corn seed treatment market. First sales will be in the second half of 2018. The planted area of corn has now reached 90 million acres and significant growth is expected thereafter.
TP Group TPG claims it has made a strong start to 2018 with the completion of a number of major contracts during the half yer to the 30th June. A new manufacturing facility in Manchester has also been completed and it continues to be active in the acquisition field.
Andalas Energy and Power Plc, the AIM listed upstream oil and gas and energy company (AIM: ADL) is pleased to provide an update following the completion of its acquisition of its interest in Eagle Gas Limited, which is the owner of 66 2/3% of Southern North Sea Licence P2112 (see announcement of 30 April 2018). The update is based on information supplied by the Operator and follows completion of the first phase of the work programme outlined by Andalas on 30 April 2018.
- Southern North Sea Licence P2112 contains the undrilled gas prospect known as Badger:
- The acreage is prospective for gas from multiple Carboniferous reservoirs.
- The prospect is geologically analogous to other producing fields in the Southern North Sea
- Phase one of the work programme is now complete.Petroleum Geo-Services ASA (“PGS”) has completed the pre-stack depth migration (PSDM) reprocessing of the 3D seismic data:
- The 3D Seismic data is based on two PGS multi-client surveys that were merged and reprocessed by PGS in 2015.
- Phase two of the work programme is now underway:
- Seismic interpretation has commenced that will estimate resource volumes and exploration well location.
- In parallel the operator has commenced the preparation of the farm-out material.
Simon Gorringe, CEO of Andalas Energy and Power PLC said:
“We recently attended a project review meeting with Eagle’s technical team, which confirmed the work programme is on schedule and during which the operator presented the latest results of the PSDM work by PGS.
“The work to date continues to validate our opinion that the licence has excellent gas prospectivity and we now look forward to the completion of the work programme, which will include the operator assessment of the resource volumes and the recommendation for the location of the potential exploration well. We look forward to announcing the results of Eagle’s work with further updates on this and on our other projects over the summer.”
For further information, please contact:
|Simon Gorringe||Andalas Energy and Power Plc||Tel: +62 21 2965 5800|
|Roland Cornish/ James Biddle||Beaumont Cornish Limited
|Tel: +44 20 7628 3396|
|Colin Rowbury||Novum Securities Limited
|Tel: +44 207 399 9427|
|Christian Dennis||Optiva Securities Limited
|Tel: +44 20 3411 1881|
|Stefania Barbaglio||Cassiopeia Services Ltd||Stefania@cassiopeia-ltd.com|
Hotel operator Hydro Hotel, Eastbourne (HYDP) reported flat interim revenues of £1.51m in the six months to April 2018, during a period where building repairs were undertaken. Higher overheads and maintenance costs meant that the loss increased from £153,000 to £200,000. There is £635,000 in the bank.
AfriAg Global (AFRI) has raised £300,000 at 0.1p a share in order to finance its new investing strategy of investing in medicinal cannabis businesses.
Panther Metals (PALM) has signed an option agreement to acquire gold exploration properties in Ontario. The total potential consideration is C$133,000 (£77,000) in cash and the issue of 19.15 million shares at 0.3p each, locked-in for six weeks. A non-refundable payment of C$30,000, one-half cash and one-half shares, has been paid. Due diligence needs to be completed within eight weeks.
NQ Minerals (NQMI) has entered into two marketing and off-take agreements, combined with a $10m secured prepayment facility with Traxys Europe. The off-take agreements relate to all lead and zinc concentrates from the Hellyer project in Tasmania in the first five years of production.
Pelican House Mining (PHM) had nearly £49,000 in the bank at the end of June 2018. The former Hellenic Capital acquired a 15% stake in Might Oak Explorations last month.
Melissa Sturgess and Michael Langoulant have been appointed as directors of Imperial Minerals (IMPP) and James Hamilton and Russell Hardwick have resigned.
Wheelsure Holdings (WHLP) has received approval for the Tracksure locking device from the Italian State Railway.
Clean Invest Africa (CIA) plans to buy out the other shareholders in CoalTech LLC. Due diligence has commenced prior to making an offer for the 97.5% of CoalTech not owned by the clean technology investment company. The initial investment was $500,000.
Frontier IP (FIPP) investee company Pulsiv Solar has won a UK government grant worth £130,00, which will be put towards a £289,000 project to compete the development of its solar micro-inverter by next April. Frontier IP owns 18.9% of the University of Plymouth spin-out.
Kestrel Partners continues to build up its stake in broadcast software provider Pebble Beach Systems (PEB) and it has taken it from 16.6% to 17.4%. Continuing operations moved back into operating profit in 2017, even though revenues fell from £10.9m to £10.3, but the £500,000 was not enough to cover interest charges and rationalisation costs. Net debt was still £10.3m after getting some proceeds from the sale of the Vislink hardware business. The revolving credit facility is £15m.
Medical imaging technology developer Polarean Imaging (POLX) has raised £800,000 at 16p a share, following last month’s investor symposium. This provides additional cash to support phase III clinical trials in the US and invest in further development.
Veltyco (VLTY) has decided not to go ahead with the potential acquisition of sportsbook operator Ruleo Alpenland.
Telit Communications (TCM) has agreed to sell its automotive division to TUS International for $105m and the deal should be completed by the end of 2018. In 2017, this business made a $10.1m contribution to EBITDA before group overheads. This deal will more than wipe out the current net debt of $25m. The focus will be the Internet of Things operations.
Online women’s fashion retailer Sosandar (SOS) continues to build up its sales. The reported interim revenues were £1.35m. Like-for-like interim revenues grew by 268%. The company remains loss-making but the gross margin improved from 37.8% to 49.4%. There was £4.6m in the bank at the end of March 2018 and this will help to finance further increase in the product range as well as continued losses. There is a database of more than 54,000 customers and 11,407 of those were repeat customers in the period.
Duke Royalty Ltd (DUKE) is raising £44m at 44p a share to fund the pipeline of royalty financing opportunities. There are already four new potential royalty partners requiring £27.5m. These include healthcare, foods and media businesses. Within 12 months, Duke expects to increase its dividend yield. Last December Duke raised £20m at 40p a share.
Itaconix (ITX) is raising £3.4m at 2p a share, which was a 70% discount to the suspension price. Trading in the shares will start again on Monday 16 July. The speciality polymers designer will have enough cash for 12 months, assuming shareholders vote in favour of the share issue. Revenues have been building up slowly and last year they nearly doubled to £553,000. The loss was £11.9m.
One year after it joined AIM, superyacht painting and maintenance services provider GYG (GYG) says that first half trading was weaker than expected. There were delays in refits and fewer new build projects were won. First half revenues of around €25.1m are lower than the two previous first half outcomes. It appears that the interim loss will be more than €1m. There are €12.1m of orders expected to be completed in the second half with a further €25m of “high probability prospects”. The 2017 revenues were €62.6m.
Marlowe (MRL) is raising £20m at 475p a share in order to finance further acquisitions in the critical asset management services sector.
Tristel (TSTL) says that its full year pre-tax profit should be at least in line with the £4.4m forecast, up 8%. Higher investment in gaining US approvals for disinfection products has held back profit growth, but it is expected to accelerate in 2018-19 when a pre-tax profit of £5.2m is forecast.
ReNeuron (RENE) has signed a three-month exclusivity agreement with a major pharma company to potentially out-licence the global rights, excluding China, of its hRPC retinal stem cell technology platform. A non-refundable payment of $2.5m will be received with a further $2.5m due if the deal goes ahead. There was £34.7m in the bank at the end of March 2018 and this should last well into 2020 even though there will be significant spending on trials, including the phase III trial of the CTX cell treatment for stroke disability.
Xpediator (XPD) has acquired Import Services Ltd, which operates a logistics and warehousing business at the Port of Southampton, for up to £12m. The business, which made a 2017 profit of £1.7m, fits well with Xpediator’s existing business in the port and has a good management team that can help the enlarged operations to grow. It should be earnings enhancing in the first full year. A placing raised £7m at 70p a share.
Fifteen-month figures from healthcare services provider Totally (TLY) include five months from the Vocare acquisition but that was still enough to generate revenues of £42.5m. A full 12 months of Vocare should increase revenues to £85m but Totally would still be loss-making. There is further restructuring and integration required. Cost savings should help Totally move into profit in 2019-20. Net cash was £10.2m at the end of March 2018.
Collagen Solutions (COS) improved its revenues in the second half, compared with the first half, but full year revenues were still 6% lower at £3.83m. There is still £5.02m in the bank. There was growth in EMEA. The eight year clinical study for cartilage repair product ChondroMimetic was successful.
Full year figures from managed communications services provider AdEPT Telecom (ADT) were better than expected. Managed services were more than two-thirds of revenues, which were 35% ahead at £46.4m. Underlying pre-tax profit was one-third higher at £7.7m. Net debt was £17.6m at the end of March 2018.
Strategic Minerals (SML) generated sales of $696,000 from the Cobre magnetite operations in the three months to June 2018, but the suspension of a major contract will hit the current quarter. There was $2.09m in the bank at the end of June 2018 and a payment of $375,000 has subsequently been received.
ECR Minerals (ECR) has raised £650,000 at 0.7p a share and that provides enough cash until the third quarter of 2019. The development programme at the Blue Moon target in Victoria, Australia will be accelerated.
An international mining company has agreed to subscribe $250,000 for shares in Orosur Mining Inc (OMI) and that will help to finance further exploration at the Anza project in Colombia. The subscription is at 5.2p a share, double the market price at the time of the agreement.
Fishing tackle retailer Fishing Republic (FISH) expects interim revenues to decline from £4.1m to £3.4m following the closure of five underperforming stores. Like-for-like store sales were 22% lower and online sales also fell. Inventory levels have fallen.
Clear Leisure (CLP) has started operations at its crypto currencies mining data centre in Serbia.
Battery technology and advanced materials developer Ilika (ILK) has raised £4m at 20p a share and an open offer could raise up to £1m more. The cash will finance the costs of developing battery technology for the automotive market. There was £2.8m in the bank at the end of April 2018.
N4 Pharma (N4P) reported disappointing results from the pharmacokinetic data for the clinical trial for reformulated sildenafil, which is better known as Viagra. The plan is to improve the speed at which the drug takes effect but the formulation has not meet the targets set.
Ariana Resources (AAU) says that the Kiziltepe mine produced 7,171 ounces of gold in the second quarter of 2019 and it is still on course to produce 20,000 ounces of gold for the whole year.
Trading remains tough at replacement windows supplier Safestyle UK (SFE) although order intake has firmed in recent weeks. This follows the loss of staff to a competitor that is being sued by Safestyle. It will take until next year to rebuild the team. Thee will be a loss this year even before £6m of restructuring costs. This will use up the cash in the bank.
Next Fifteen Communications (NFC) is paying an initial £2.2m for Technical Associates Group, which is a technical content and digital marketing business. This deal increases the group’s exposure to the industrial engineering sector.
More director changes at Quarto Group Inc (QRT) with Andy Cumming appointed as senior independent non-executive chairman. Major shareholder Laurence Orbach has stepped down as executive chairman and will become a non-executive director. Chief operating officer Ken Fund has joined the board.
Nicholas Lyth has resigned from the board of Sealand Capital Galaxy Ltd (SCGL) having been a director for 17 months.
China-focused healthcare investor Cathay International Holdings (CTI) says that the first half sales and profit will be lower than expected but it hopes to make up the shortfall in the second half. Healthcare subsidiary Lansen has appointed a new chief executive and there have been operational changes, while regulation changes also continue to hit sales in the first quarter. The company’s hotel operations are trading ahead of expectations. The interim will be published in late August.
The music industry is booming, but its outdated and costly music rights system needs to change
The music business has always had a tough reputation. Gonzo journalist Hunter S. Thompson described it as “…a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men dielike dogs.”
That may not be accurate. However, where there is a negative reputation stems from the exploitation of artists. Stories abound of musicians not receiving their fair share of royalties. For example, Solomon Linda, composer of the song that became “The Lion Sleeps Tonight,” was paid only 10 shillings for his work. That’s about 78 pence in today’s money.
In the past, underpayment was often deliberate. But then, as now, lost income was also the result of the cumbersome, byzantine system of music rights registration and supporting laws across both performance and mechanical rights. The Music Modernization Act, passed recently by the House Judiciary Committee in the US will provide significant improvements by reforming mechanical licencing laws to fully support artists and rights owners.
Outdated, slow and often inaccurate
The title to any given piece of music and performance is recorded in multiple, often-conflicting and/or incomplete records of who owns the rights to what music in what territory and for what type of use.
In Europe alone, 28 collection societies collect royalties for public performance rights and mechanical recordings in 28 different markets. This lack of transparency combined with the centralised nature of the industry has led to slower royalty payments or paid inaccurately. As a result, there continues to exist disconnect between the owners of music content, the artists themselves, and the end consumer.
This environment has a negative impact on all participants, with high cost base of administration, revenue leakage for rights owners and complex processes underpinning a convoluted ecosystem.
Artists are not the only victims of this antiquated system. Recording companies and music publishers spend significant amounts of their overhead tracking their artists’ rights. Often, artists must wait for up to two years after their work is purchased before they get paid.
It has not gone unnoticed. There was an industry attempt, the Global Repertoire Database, which aimed to create a single, industry-standard database containing a global view of rights ownership. However, although the sentiment was borne from a desire to create a shared, authoritative means to track and pay royalties, the effort failed.
The ongoing need for a better system of rights ownership information management remains to be fulfilled and arguably the benefits and need for such a solution is ever increasing.
Until recently, data was collected and maintained manually, country by country, with a disconnect between composer and performer. Now things don’t have to be run this way. With some reengineering, the digital network that has turned every smartphone, tablet, and computer into a music store – and music into a business that is growing at pace, with global digital music leading the charge with revenues worth US$14.5 billion, forecast to grow at 11.8% CAGR to US$18.6 billion by 20211 – can also be used to protect the rights of artists, publishers, labels, and other copyright owners. This process is both thorough and secure
Blockchain technology, it really could work
In the US, the Music Modernization Act will fast track mechanical licencing laws into the digital age. This will include streaming and on- demand mechanicals. In existing US law, digital service providers such as Spotify pay both performance and mechanical rights for streaming and downloads…
Link here for full PWC article
Further to detailed information provided in the RNS dated 17 April 2018, Tertiary Minerals plc, the AIM traded company building a strategic position in the fluorspar sector, now provides an update on the Exploitation (Mine) Permit re-assessment for the Company’s Storuman Fluorspar Project in Sweden.
- The Swedish Mining Inspectorate (“Mining Inspectorate”) has now received the opinion of The County Administrative Board of Västerbotten (“CAB”) in response to the recent supplementary reports submitted by the Company in connection with its application for a Mine Permit.
Ø Natura 2000 area: The CAB is satisfied with the supplementary in-depth analysis and has concluded that a supplementary Natura 2000 permit is not required.
Ø Tailings Storage Facility (“TSF”): The CAB is not satisfied that the mitigation measures proposed by the Company enable the co-existence of reindeer husbandry and the TSF operation. The CAB has expressed the view that the proposed TSF location should be protected to secure reindeer husbandry.
Ø The CAB has therefore advised against grant of the Mine Permit in its current form.
- The Company has now been asked to provide comments regarding the CAB’s opinion back to the Mining Inspectorate.
Commenting today, Managing Director, Richard Clemmey said: “I am pleased that the CAB has accepted that we do not require an additional Natura 2000 permit, which would be a costly and time consuming process. It is however disappointing that the CAB has not accepted the extensive mitigation measures proposed for the TSF location. Whilst we, our Swedish consultants and our lawyers remain of the strong opinion that the mitigation measures proposed are more than adequate to enable the co-existence of reindeer husbandry and the TSF operation, we, together with our consultants and lawyers, now need to review the CAB’s response in full and decide on the best course of action in order to overcome this hurdle”.
Tertiary Minerals plc
Richard Clemmey, Managing Director
Patrick Cheetham, Executive Chairman
+44 (0) 1625 838 679
SP Angel Corporate Finance LLP
Nominated Adviser & Broker
Ewan Leggat/Lindsay Mair
+44 (0) 20 3470 0470
Background Information – Storuman Mine Permit
The Company submitted its Exploitation (Mine) Permit application in July 2014 to the Swedish Mining Inspectorate and following an extensive consultation process the 25-year Exploitation (Mine) Permit was granted on 18 February 2016.
However, as a consequence of the Supreme Court’s decision to overturn the grant of a third-party mining company’s Mine Permit in the south of Sweden (Norra Karr Mine Permit – rare earth element project, owned by Leading Edge Minerals) the government returned the Storuman Mine Permit case, along with many other cases, back to the Swedish Mining Inspectorate for re-assessment in December 2016. The re-assessment is intended to consider the impact of mining in the concession area on a wider surrounding area. Earlier in 2017 the Swedish Mining Inspectorate requested additional information from the Company relating to the original Environmental Impact Assessment (EIA) and the wider area. The Company provided the additional information to the Swedish Mining Inspectorate in the form of an updated EIA in May 2017. The additional information was accepted by the Mining Inspectorate which subsequently invited all stakeholders to provide comments on the application and additional information, the deadline for responses was 27 October 2017.
In response to stakeholder responses the Swedish Mining Inspectorate requested further detail from the Company in relation to the impact of proposed operations on the Natura 2000 and reindeer herding within the wider surrounding area and were granted a deadline of 16 April 2018 to respond. Given that the level of detail required for the wider area has changed in response to the new case law, the Company engaged with its Swedish legal advisors, the Swedish Mining Inspectorate and The County Administrative Board of Västerbotten to establish the requirements prior to the work being executed and submitted.
The supplementary reports and legal statement were submitted to the Mining Inspectorate on 16 April 2018. Any ratification of the grant of the mining concession will, however, be open to appeal and the Company will therefore not spend any further money on exploration or development of the Storuman Project until the matter is resolved.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Notes to Editors
Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration and development company building a significant strategic position in the fluorspar sector. Fluorspar is an essential raw material in the chemical, steel and aluminium industries. Tertiary controls two significant Scandinavian projects (Storuman in Sweden and Lassedalen in Norway) and a large deposit of strategic significance in Nevada, USA (MB Project).
The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.