TIDMBMN
RNS Number : 9478J
Bushveld Minerals Limited
05 April 2018
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.
5 April 2018
Bushveld Minerals Limited
("Bushveld" or the "Company")
Lemur Resources Q1 Operational Update
Bushveld Minerals, the AIM-listed integrated vanadium producer
with additional investments in coal, power and tin, is pleased to
provide an operational update in respect of Lemur Holdings Limited
("Lemur"), Bushveld's coal and energy subsidiary that is developing
an integrated thermal coal mining and independent power project in
Madagascar.
Highlights:
-- Load, demand and transmission routing studies completed
-- Discussions with Madagascan government regarding Concession initiated
-- Social and Environmental Impact Assessment ("SEIA") commenced
-- Consultants appointed to support engagement with financial
institutions for project financing
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"Notwithstanding Bushveld Minerals' focus on its flagship
vanadium platform, the Company is committed to progressing the
Lemur project as an integrated coal mining and power project, a
configuration that it believes is key to unlocking the significant
value inherent in the project. We believe the Imaloto Power Project
is key for the southwestern region of Madagascar. The design and
location of the Project would immediately increase the country's
baseload power supply by approximately 15 per cent, with the option
to scale up to supply more power to new electricity users in the
region in the longer term."
"I am therefore pleased to see significant progress made on the
project - particularly now that it is in process of completing a
bankable feasibility study. Moreover, I am delighted to note the
positive cooperation with the Madagascan government as we advance
discussions on the concession for the power project alongside the
various studies that are an important part of the bankable
feasibility study."
Prince Nyati, CEO of Lemur Resources Limited, commented:
"Lemur is focused on building on the achievements made in 2017,
key among these was the signing of a 30 year PPA with JIRAMA which
is a statutory precondition to receiving a concession for the Power
Project from the government. The process to obtain the concession
is underway and is a top priority for 2018. Likewise, Lemur will
focus on completing the Social and Environmental Impact Assessment.
These approvals will be pursued together with the Bankable
Feasibility Study and discussions with potential partners for
project financing.
"A key strategy for Lemur is for the asset to supply sustainable
and affordable baseload power by using locally produced fuel to
provide power to the southwestern region of Madagascar. This is
critical for local industry, manufacturing and economic development
in the region."
Lemur, through its Madagascan subsidiary Imaloto Power Project
SARL. executed in November 2017 a binding Power Purchase Agreement
("PPA") with state-owned utility, Jiro sy Rano Malagasy ("JIRAMA")
as part of the Imaloto Power Project. The power plant will be
located at the mine-mouth of Lemur's coal deposit, which has a JORC
compliant resource of approximately 136 million tonnes of coal. The
addition of a power component will support Lemur's plans to unlock
the value of the coal asset, while at the same time secure a
reliable electricity off-take backed by a government entity for the
people of Madagascar.
The load, demand and transmission routing study primarily
focussed on understanding the load demand in the catchment area as
well as to align the design and phasing of the power plant capacity
and transmission with actual demand in the catchment area. These
studies are critical to concluding the bankable feasibility study
("BFS") of the Project.
Discussions with the Government of Madagascar on obtaining a
Concession for the Project are at an advanced stage, with the
Concession Agreement currently under legal review by the parties'
respective legal teams.
We have commenced the SEIA which is supported by Worley
Parsons/Advisian. The advisers are currently preparing the formal
submission to the Environmental Ministry. We have conducted
procurement of financial advisory consultants to support engagement
with financial institutions for project financing. The financial
advisers will among other things, prepare the financial modelling
and structuring. They will also assist with the credit enhancement
and risk management.
Figure 1: Imaloto Power Project Timeline
http://www.rns-pdf.londonstockexchange.com/rns/9478J_-2018-4-5.pdf
Objectives for 2018:
-- Obtain the concession for the Project
-- Conclude the SEIA Study
-- Pursue funding and credit enhancement options for the
Project, which have already been initiated
-- Secure additional offtakes above the current demand from JIRAMA
-- Seek to conclude coal offtakes with third parties - the coal
mine is viable with only supplying coal to the Power Project.
Notwithstanding, supplying coal to third parties provides early
cashflows prior to commissioning of the power plant
-- Further explore strategic partnerships for the Project
(technical, commercial and financial)
-- The projected power project commissioning date is 2021
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief
Executive Officer
Chika Edeh, Head of Investor
Relations
Lemur Resources Limited
Prince Nyati,
Chief Executive Officer,
Lemur Resources Limited +27 (0) 11 268 6555
SP Angel Corporate Finance
LLP +44 (0) 20 3470 0470
Nominated Adviser & Broker
Ewan Leggat
Richard Morrison
Alternative Resource
Capital +44 (0) 207 186 9004
Joint Broker
Alex Wood
Blytheweigh
Financial PR
Tim Blythe / Nick Elwes +44 (0) 207 138 3204
Gabriella von Ille +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is an AIM listed integrated vanadium producer
with additional investments in coal, power and tin.
The Company's flagship vanadium platform includes a 59.1 per
cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd a
primary vanadium mining and processing company; the Mokopane
Vanadium Project and the Brits Vanadium Project. The coal platform
comprises the wholly-owned Imaloto Coal Project, which is being
developed as one of Madagascar's leading independent power
producers. The Company's tin interests are held through its
shareholding in AIM listed AfriTin Mining Limited.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owned high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage solutions provider.
Whilst the demand for vanadium remains largely anchored in the
steel industry, Bushveld Minerals believes there is strong
potential for an imminent and significant global vanadium demand
surge from the fast-growing energy storage market, particularly
through the use and adoption of Vanadium Redox Flow Batteries.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be
accessed on the website: www.bushveldminerals.com.
About Lemur Resources Limited
Lemur Resources is a wholly owned subsidiary of Bushveld
Minerals and is the company's coal and power platform. The Imaloto
Project is located in the southwest of Madagascar and consists of a
136 million tonne coal resource (90 per cent of which is of JORC
compliant Measured and Indicated). The Project also includes an
initial 60MW mine mouth coal power plant as well as over 200km of
new transmission lines, developed in parallel as one of
Madagascar's leading independent power producers.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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