Amala Foods PLC Corporate Update (9843B)
February 17 2022 - 5:00AM
UK Regulatory
TIDMDISH
RNS Number : 9843B
Amala Foods PLC
17 February 2022
Amala Foods Plc
( " Amala " or the " Company")
Corporate Update
Amala Foods Plc (LON: DISH), a food technology company is
pleased to provide a Corporate Update with regards to ongoing
progress and development of the Company's plant-based Joint Venture
business and in addition the latest update regarding the approach
to potentially pivot into a new business direction.
Amala Foods Joint Venture
The plant-based foods Joint Venture Company has made further
progress since the beginning of the year. Amala is now supplying
its plant-based burger to a Manila based restaurant owned by a
well-known Filipino chef, Robby Goco. The Company is also preparing
to supply another local pizza chain with plant-based pepperoni.
Encouragingly, various other local supply agreements are at varying
stages of progress and the Company is confident that there is a
significant market opportunity in the Philippines and the
region.
Following management's recent trip to the USA last December, the
Company believes that its product line will be able to compete both
in terms of quality and pricing in the North American marketplace.
The Company is currently undergoing a regulatory process that will,
upon successful completion, allow its products to be distributed in
the USA. Should this be successful, management expects this to be a
major market opportunity for the Company.
Potential Rare Earth Elements (REE) new direction
The Company recently published its Half Yearly Report and noted
in the Directors Report that it has received several unsolicited
approaches about utilising the Company's public listing for a
different purpose that would value the Company significantly above
its current market capitalisation. To that extent the Company has
now signed a Term Sheet with Terra Rara UK Limited ("Terra").
Terra Rara UK has acquired majority interests in several highly
attractive Rare Earth Elements projects in Africa.
The projects are summarized below:
1) a 70% interest in the Mungo Rare Earth Elements Project in
Angola (MREE Project). The MREE Project is located approximately
150km from London Stock Exchange Listed, Pensana Limited's (current
market capitalisation GBP174m) Longonjo Project and is considered a
major carbonatite rare earth and niobium deposit that has been
subject to extensive historical exploration by major global mining
company VALE.
Diamond drilling has confirmed the presence of very high grade
and broad intersections of rare earth elements mineralisation, with
key results including:
-- 12.9m from surface at 6.54% TREO
-- 18m from surface at 5.09% TREO
-- 5m at 4.8% TREO
-- 51.4m at 3.27% TREO including 9.3m at 4.09% TREO and 4.4m at
4.42% TREO
-- 72.90m at 3.09% TREO
-- 60m at 2.35% TREO
-- 142.4m at 2.55% TREO
Additionally, there is significant and high niobium
mineralisation from diamond drilling including 24m at 3.05%
Nb2O5.
2) an 80% interest in the Nankoma and Gulu Road Rare Earth
Elements Projects in Uganda.
The Nankoma Project is located 120km east of the Ugandan capital
of Kampala and along strike and adjoins Australian Stock Exchange
listed Ionic Rare Earth Limited's Mukutu Project (current A$191M
market capitalisation) which is considered a world class ionic
adsorption clay rare earth deposit with a JORC compliant resource
of 315Mt and a scoping study which confirmed EBITDA of US$1.28B and
post - tax cashflow of US$766M.
The Gulu Road Project is located in a new area where Terra Rara
UK Limited has secured a major landholding over an area considered
to be highly prospective for a major ionic adsorption clay rare
earth deposits and which offers the potential to be first mover in
this potentially new globally significant high-grade rare earth
elements mineralisation district.
The Term Sheet outlines the basis for a potential transaction
subject to an exclusive due diligence period of thirty days and the
execution of a Share Purchase Agreement. Should the transaction
result in a successful conclusion the Company would acquire the
entire share capital of Terra, the terms of which currently value
the Company at a significant premium to the current share price.
Upon successful conclusion there would also be a change of
management. The transaction, should it progress, will require the
future approval of the FCA.
The Company will update the market as appropriate in due
course.
Aidan Bishop, Director commented: "It gives me great pleasure to
confirm that the Company's existing plant- based operation
continues to gain traction both in product development and in the
early stages of the commercialisation stage and that we are
accreting value for potential monetisation options in the
short-term.
We also have a potential complete transformation and pivot
opportunity subject to successful due diligence and future
regulatory approval by the FCA with regards to a key and globally
strategic arena in the Rare Earths sector. Rare Earths Elements are
becoming a geo-politically important area given China's present
dominant position on these resources. We anticipate those companies
with exposure to these important assets will command ever
increasing strategic premiums in future years and the opportunity
to be involved in this area is very exciting."
Enquiries:
Jonathan Morley-Kirk, Non-Executive Chairman
jmk@bluebirdmv.com
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