Investee Company Operational Update

RNS Number : 8454Z

Kennedy Ventures PLC

20 December 2017

 

20 December 2017

Kennedy Ventures plc

Investee Company Operational Update

Kennedy Ventures plc ("Kennedy Ventures" or "the Company) the AIM quoted investment company who, through its stake in African Tantalum (Pty) Limited ("Aftan"), has an interest in the Namibia Tantalite Investment Mine ("NTI" or the "Mine") in Namibia, is pleased to provide an operational update.

Highlights:

·    Aftan's third shipment of industry leading high purity tantalum has been sent to its customer, a global North American leading tantalum consumer and end user of our tantalum ore ("the Customer"), with a fourth shipment currently being tested by a third party before being sent

·    Drilling commenced on two exploration campaigns in the Homestead and Lepidolite locations to evaluate further resource potential around the NTI mine

·   The MSA Group, Aftan's competent person, have drilled over 400 metres, with cores being cut and organised to be sent out to ALS Laboratories before the year end. Aftan has employed a second geologist, experienced in exploration, for approximately one quarter to aid this program

·     Further successful plant upgrades and purchases:

o  Installation of dam under the thickener for improved water recirculation

o  Installation of larger slurry pumps for increased run time efficiency and through put maximisation

o  Bulk Diesel Tanks installed, with first diesel delivery expected before year end

o  Two additional boreholes drilled

o  Additional water pumps fitted and installed

o  Further solar panels have been installed

o  Two 60k litre dams have been purchased

·     A successful visit by the Customer and a second potential customer took place in Q4 2017. The second potential customer began an audit of the NTI mine and intends to continue discussions with the Company in Q1 2018

·   In conjunction with its own preliminary studies, Aftan has engaged with a third party environmental expert to consider the safest and most efficient way of using water from the nearby Orange River in order to aid increased production at the NTI mine

Aftan continues to focus on delivering its shipments of industry leading quality tantalum from the NTI mine to the Customer and is pleased to note that a third shipment has been delivered to the Customer. Aftan is currently having a fourth shipment assay tested by a third party and will update shareholders upon its final delivery to the Customer.

In line with its production requirements defined by its Customer, Aftan continues to upgrade the NTI mine with the successful installation of a dam under the thickener to capture water from the Mine's cyclone which is then recirculated back into the system. Aftan has also installed larger slurry pumps with improved wear casings and impellors which will continue improving the Mine's run time efficiency and through put. Bulk Diesel Tanks have also been installed with first diesel delivery expected before year end. Aftan has also added two more boreholes, additional pumps, solar panels and two 60k litre dams to the plant which will be installed in the near future.  

Aftan was delighted this quarter to host the Customer, as well as a second potential customer, at the Mine. The Company is also pleased to note that the second potential Customer began an audit of the Mine and wishes to meet with Aftan in Q1 2018 to continue supply discussions.

As Aftan continues to consider future-proofing of the Mine and meet the production ramp up schedule, it has contracted a third party Environmental expert to begin the process of achieving certified rights to bring water from the Orange River as well as to establish certification to move potentially hazardous materials.

Aftan has also secured a new agreement with a local supplier for fixed pricing of all of Aftan's Personal Safety Equipment and for a consignment of repeat usage items. This reduces lead time and improves working capital, moving Aftan to a fixed cost model and increasing Aftan's local country spend.

Larry Johnson, CEO of Kennedy Ventures, commented:

 "Significant progress continues at the Mine and our Customer continues to be impressed by the upgrades and potential for scale. Plant efficiencies continue to improve and production from the Mine has steadily increased as a result of the substantial investment this year in improving equipment and processes. I am confident we will soon start to realise the inherent value from our investment in Aftan."

Kennedy Ventures plc
Larry Johnson (CEO), c/o Camarco	Tel: [phone]
finnCap (Nominated Adviser and Joint broker) Christopher Raggett / Scott Mathieson / Anthony Adams (corporate finance) Simon Johnson (corporate broking)	Tel: [phone]
Shore Capital (Joint broker) Mark Percy / Toby Gibbs (corporate finance) Jerry Keen (corporate broking)	Tel: [phone]
Camarco (PR) Gordon Poole / Billy Clegg James Crothers	Tel: [phone]

The data included in this press release may vary as operations continue, and also due to the factors involved in operating in the geography.  These factors could include inclement weather, social issues and shut downs for technical works undertaken among others.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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