Kennedy Ventures PLC Completion of long term offtake agreement (8318R)
July 01 2015 - 4:49AM
UK Regulatory
TIDMKENV
RNS Number : 8318R
Kennedy Ventures PLC
01 July 2015
01 July 2015
Kennedy Ventures plc
Completion of long term offtake agreement
Kennedy Ventures plc ("Kennedy Ventures" or "the Company") is
pleased to announce the completion of a long term offtake agreement
between its 75% held African Tantalum (Pty) Limited ("Aftan") and a
major leading manufacturer of electronic components. Kennedy
Ventures is focusing on tantalite production through its stake in
Aftan, which owns and manages the Tantalite Valley Mine ("TVM") in
Namibia.
Offtake Agreement
The leading manufacturer has agreed to take the full production
from Aftan under a long term offtake agreement. Prices are in line
with the market.
Aftan's mine is set to restart operations in July 2015 and to
make first deliveries in October 2015.
The Market for Tantalite and Tantalum
Tantalite concentrates form the vast majority of feedstock for
all tantalum products. As such they critical and unreplaceable
parts of a wide range of modern electronics including computers,
tablets, mobile phones, motor components and video game
systems.
Aside from electronics, tantalum has significant usage in supper
alloys, specialised steels, corrosion resistant equipment and
medicine.
Tantalum's applications are based on its unique physio -
chemical properties. The oxides and metal have extremely high
melting points, high heat conductivity and strong resistance to
corrosive environments. Combined, these factors have entrenched its
international demand and made it an important component of numerous
research projects and new technologies.
Trade pricing is following tantalum markets as per Asian Metals
and Metal Pages.
Peter Hibberd, CEO of Kennedy Ventures commented:
"This is a significant step forward in the realization of
creating a Namibian based producer of tantalite and products. With
operations at the mine due to re-start shortly, we are pleased to
have reached a supply agreement with a true market leader in this
field. Since Aftan will be a high quality, low cost producer these
offtake terms will ensure full sales and lock in profitability. In
addition, this association affords a number of further potential
opportunities to expand the reach of our tantalite business."
ENDS
For further information, please contact:
Kennedy Ventures plc
Peter Hibberd c/o Billy Clegg +44 (0) 020 3757 4983
Cenkos Securities
Derrick Lee / Nick Tulloch +44 (0) 131 220 6939
Peterhouse Corporate Finance +44 (0) 207 469 0935
Peter Greensmith
Camarco
Billy Clegg / Georgia Mann / Zoe Moulton +44 (0) 020 3757 6983
This information is provided by RNS
The company news service from the London Stock Exchange
END
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