Fox Marble Holdings PLC Acquisition of Gulf Marble Investments Limited (6602D)
October 11 2018 - 2:00AM
UK Regulatory
TIDMFOX
RNS Number : 6602D
Fox Marble Holdings PLC
11 October 2018
11 October 2018
Fox Marble Holdings plc
("Fox Marble" or the "Company")
Acquisition of Gulf Marble Investments Limited
Fox Marble, the AIM listed company focused on marble quarrying
and finishing in Kosovo and the Balkans region is pleased to
announce that it has acquired Gulf Marble Investments Limited
(Dubai) its joint venture partner based in the Prilep Alpha Quarry
in Macedonia, including all the rights attached to that
Company.
Under the terms of the original agreement to acquire the Prilep
Alpha quarry in Macedonia in 2013, Gulf Marble Investments Limited
provided the funds to acquire the license to the site and capital
investment amounting to EUR1.7 million, and then entered into an
operating agreement with Fox Marble to operate the quarry. In
compensation Gulf Marble Investments Limited was provided with a
royalty amounting to 40% of the gross revenues received from the
sale of its block marble from the quarry. The acquisition of the
quarry rights in Prilep Alpha was originally announced on the 4
July 2013.
Through the acquisition of 100% of the share capital of Gulf
Marble Investments Limited, Fox Marble will effectively re-acquire
all the 40% gross revenue royalty, as well as all the assets and
capital equipment held by the entity.
As consideration for the acquisition Fox Marble has issued an
Unsecured Convertible Loan Note ("Loan Note") in the amount of
EUR1.785 million. Under the terms of the Loan Note, the holder may
elect to convert at a conversion price of 130% of the 3 month
volume weighted average share price. The Loan Note is repayable
from the 1 October 2020. The Loan Note carries an interest rate of
Libor plus 1.5% payable annually in arrears.
Following the issue of the Convertible Loan Note detailed above
the Company has a total of GBP2.85 million Convertible Loan Notes
outstanding.
Chris Gilbert, CEO, commented "Our arrangements at the time
afforded us the unique opportunity to not only acquire the rights
to a white marble quarry containing the world famous white from the
Prilep region of Macedonia but to develop the quarry to commercial
standards. Our joint venture partners Gulf Marble have been
instrumental in achieving this and we are grateful to them for
helping us reach this goal. We look forward to seeing the benefits
of our increased participation in the Prilep Alpha quarry feeding
through to the bottom line going forward from our activities in
Macedonia"
For more information on Fox Marble please visit
www.foxmarble.net or contact:
Fox Marble Holdings plc
Chris Gilbert, Chief Executive Officer Tel: +44 (0) 20 7380
0999
Fiona Hadfield, Finance Director Tel: +44 (0) 20 7380
0999
Brandon Hill Capital (Broker)
Oliver Stansfield Tel: +44 (0) 20 3463
5000
Cairn Financial Advisers LLP (Nomad)
Liam Murray Tel: +44 (0) 20 7213
Jo Turner 0880
Yellow Jersey PR (PR & IR)
Georgia Colkin Tel: +44 (0) 7825
Katie Bairsto 916 715
Tel: +44 (0) 7946
424 651
Notes to Editors:
Fox Marble (AIM: FOX), is a marble production, processing and
distribution company in Kosovo and the Balkans region.
Its marble products, which includes Illirico Bianco, Illirico
Selene, Grigio Argento and are gaining traction globally both to
international wholesale companies as well as being supplied
directly into luxury residential properties. In the UK these
include among others St George's Homes and Capital and Counties
Plc's Lillie Square development. In Sydney, Australia Rosso Cait,
Alexandrian White and Breccia Paradisea marble have been used in
what is expected to be Australia's most expensive residential
property. These sales serve to demonstrate the desirability of
Fox's premium marble products as the stone of choice in some of the
most prestigious and expensive residential developments around the
world.
Fox Marble holds 40 year mining licences for six separate marble
quarries with a maiden JORC resource indicating an in-situ
valuation of approximately Euro 16.5 billion. Fox has taken three
of the six sites into production (the Drini and Maleshevë quarries,
both in Kosovo and from the Prilep Quarry in Macedonia) and
continues to increase production. Notably, Fox has access to over
300 million cubic metres (over 1bn tons) of premium quality
marble.
Marble demand continues to grow with stable pricing,
predominantly driven by the construction and real-estate
industries, on which Fox is looking to capitalise.
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END
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