Trading Statement

RNS Number : 1477G

Equatorial Mining & Exploration PLC

27 February 2018

 

27^th February 2018

Equatorial Mining & Exploration Plc ("EME" or the "Company")

Trading Update and Announcement of Planned Fund Raise

In the Trading Update dated 11^th December 2017, the Company announced that its wholly owned Nigerian subsidiary, EME Mine Nigeria Limited ("EME Mine") had expected sales of coal shortly to commence from its recently acquired St Leonard Mine.  The Directors are pleased to announce that they have sold a trial amount of 400 tonnes of coal. The customer has declared that our coal is suitable for them to commence negotiations for a long term supply agreement; however this will be conditional on EME committing to a minimum tonnage per month.

EME wishes to commit to this proposed agreement and position itself to supply coal into the growing demand within Nigeria.  As a result,  the Board has determined that it will be necessary for EME Mine to commence the immediate expansion of the St Leonard Mine and the opening of a second mine at a new site a short distance away.  Both these mines will enable us to produce at an average of up to 500 tonnes per day.

During the four-year period of our involvement in Nigeria, we have been fortunate in that the demand for coal has improved and the price per tonne has steadily increased.  In addition, our continued work in Nigeria has enabled us to develop strong relationships and better understand the opportunities available in this resource rich country.  The Board believes that the coal industry will continue to be a good area for EME to develop its business and the sector can allow very strong margins on successfully mined product. 

Our in-country operating margins are supported by the relatively low cost of staffing, plenty of available labour combined with the competitive costs for fuel and machine hire.  Local relationships are important to the Company and the Board is pleased to report that the communities local to our mine are extremely friendly, cooperative and enthusiastic in their support for EME's continued operations in the area.

Fund raise.

To date the Board has managed to proceed on an extremely tight budget and the fabric of Equatorial Mining & Exploration Plc remains intact.  However, for us to go forward and to capitalise on the opportunity at the existing and the new planned mine, the Board has determined that a minimum of £50,000 is required.  The funds are expected to be raised via a placing of convertible loan notes subject to a final closing date of 9^th March 2018. 

In the event that the funds are raised, the proposed offtake agreement is signed, and excavation commences by the end of March, then EME is expected to report conservatively, a profit before tax for the year to 31 December 2018 of £380,000. 

Enquiries:

Equatorial Mining & Exploration Plc: Nicholas Nelson, Executive Chairman	[e-mail]
NEX Exchange Adviser and Broker Alexander David Securities James Dewhurst	[phone]

The Directors take responsibility for this announcement.

 

END

 

 

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