United Cacao Limited SEZC Pivotal Environmental Certification Approval (1373R)
December 07 2016 - 2:00AM
UK Regulatory
TIDMCHOC TIDMUCL
RNS Number : 1373R
United Cacao Limited SEZC
07 December 2016
7 December 2016
United Cacao Limited SEZC
("United Cacao" or the "Company")
Pivotal Environmental Certification Approval Granted &
Trading Update
United Cacao Limited SEZC (AIM: CHOC), the AIM-quoted cacao
plantation company based in Peru, is pleased to announce that the
General Directorate for Agricultural Environmental Affairs
("DGAAA") - a division of the Peruvian Ministry of Agriculture -
has approved the Company's soil study report that was originally
submitted on 30 December 2014. The DGAAA is the relevant regulatory
authority for agricultural land titles in Peru.
The approved soil study is the final element for completion of
the Company's environmental certification programme known as the
Proyecto de Adecuacion de Manejo Ambiental ("PAMA") submission. The
PAMA is an environmental document issued by the Peruvian Government
that certifies and accredits United Cacao's agricultural practices
and activities and confirms that such activities comply with the
country's environmental rules and regulations. The Company
submitted the original terms of reference for the PAMA on 9
September 2013; these terms of reference were approved and further
clarified by the DGAAA on 9 October 2013 and 6 December 2013,
respectively. Furthermore, the Public Participation Plan ("PPP") of
the PAMA was completed and approved on 15 October 2014.
United Cacao now looks forward to the submission and subsequent
DGAAA approval of its PAMA. In light of the fact that all requisite
information, in particular the soil report and PPP, has now been
approved by the DGAAA and that the Company has followed the
original approved terms of reference, the Company expects final
ratification of its PAMA in 2017.
Anthony Kozuch, Executive Director, commented:
"This is an important milestone for the Company. Approval of the
soil study allows the Company to officially submit the PAMA, which
is the definitive environmental certification programme requested
by the Peruvian authorities."
Dennis Melka, Group Managing Director, commented:
"We are immensely pleased to have secured this critically
important approval from the Peruvian authorities in Lima. We wish
to thank our shareholders, the local community, and the regional
authorities in Loreto and Tamshiyacu whose support has been
invaluable in the approval process. We can now move forward with
confidence as we create one of the world's largest cacao
estates."
In addition, the Company is pleased to provide an update to
shareholders on the progress of its operations in Peru:
-- The Board of Directors, as part of the recent
re-organization, commissioned an agronomist study by CIRAD, a
renowned French agricultural institute, to provide an independent
review of the field operations and status of the estate. The
results of this analysis were completed on 2 December 2016 and
confirmed that the estates are: (i) located in an optimal growing
environment for cacao; (ii) well-planted with proper supporting
infrastructure; and, (iii) overseen by an organised and
professional field team on the ground. The report is positive
overall on the agricultural prospects of the operation.
-- The Group has planted a total of 1,843 hectares (4,554 acres)
to date, of which 1,643 hectares (4,059 acres) is planted corporate
estate and 200 hectares (494 acres) relates to the Programa Alianza
Producción Estratégica Cacao ("PAPEC"), the Company's innovative
small-farmer programme. The Company is now focused on developing
production from the existing planted areas of its estate. Any
further expansion of the planted corporate estate and PAPEC is
subject to the procurement of additional capital.
-- The Company continues to target a production yield at
maturity of between 2.0 and 2.75 tonnes of cacao per hectare, which
is broadly in line with similar corporate estates in the Peru. The
Company is adopting some advanced planting and grafting practices,
which, if successful, might significantly increase the expected
yield, however the advanced nature of these practices may lead to
both a delay in reaching maturity or a shortfall in yield. Further
updates will be provided as the plantation develops.
-- The Company has also planted 400 hectares (988 acres) of high
premium, fine flavor Sacha Gold cacao. This variety has not been
planted before on such a large corporate scale and as yet there is
no certainty that it will achieve the predicted yield. Management
continues to monitor the performance of the blend and will provide
periodic updates as to progress.
For more information please visit www.unitedcacao.com or
contact:
+1 345 815
United Cacao Limited SEZC 2710
Dennis Melka, Group Managing
Director
Anthony Kozuch, Executive Director
Strand Hanson (Financial & Nominated +44 (0) 20
Adviser) 7409 3494
James Harris / James Spinney
/ Ritchie Balmer
+44 (0) 20
Beaufort Securities (Joint Broker) 7382 8300
Jon Belliss / Elliot Hance
Kallpa Securities SAB (Joint
Broker) +51 1 630 7500
Ricardo Carrion
+44 (0) 20
Tavistock (PR Adviser) 7920 3150
Niall Walsh / Jos Simson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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