Rose Gypsum progresses in Tendering Round in Cuba

RNS Number : 0680D

Rose Petroleum PLC

04 July 2016

 

Rose Petroleum plc

("Rose" or the "Company")

Rose Gypsum wins tendering process to exclusively negotiate gypsum transaction in Cuba

Following its announcement on 3 May 2016, the Company is pleased to provide an update on its Cuban activities.

The Company's wholly owned subsidiary, Rose Gypsum Limited ("Rose Gypsum"), has been participating in a competitive and exhaustive tender process to manufacture calcined gypsum, interior panels and ceiling panels and other gypsum based materials for the construction industry in Cuba.

The Board of Rose is now delighted to announce that Rose Gypsum has been selected from a number of tendering companies, to exclusively proceed into the next stage of the process which is the detailed negotiations phase.

Rose Gypsum has been selected on the grounds of its technical and professional expertise, following its negotiations with both Empresa Materiales De Construccion Ciego de Avila ("EMC"), the local state company responsible for the project and the Cuban Ministry of Construction ("MICONS"). The commencement of negotiations is scheduled to take place in Cuba in July. Rose Gypsum is negotiating to become the joint operator, distributor and manufacturer on the project.

The negotiation process will be exclusively between EMC and Rose Gypsum, and although there is no guarantee that a deal will be completed, this is a very significant achievement and milestone for Rose in Cuba.

If Rose Gypsum is successful in completing the deal, it would become the sole manufacturer of gypsum related products operating in Cuba.  Rose Gypsum will be well positioned to meet the domestic demand in these products, driven by the significant growth in tourism and construction.  This opportunity will be further enhanced by any future lifting of current trade embargoes.

Matthew Idiens, CEO commented "I am delighted with the progress we have made and I'm extremely excited about the opportunity we have to be involved in the rapidly expanding construction industry in Cuba and the redevelopment of the country.  I am looking forward to the next phase of the negotiations and hope that we can conclude a successful transaction.

"With all the ongoing turmoil in both Europe and the oil market, I believe this opportunity would add significant value to our asset portfolio."

For further information, please contact:

Matthew Idiens (CEO) Chris Eadie (CFO)	Rose Petroleum plc	Tel: [phone] Tel: [phone]
Jeremy Porter / Richard Short	Allenby Capital	Tel: [phone]
Graham Herring / Tim Metcalfe	IFC Advisory	Tel: [phone]

 

END

 

 

MSCGMGGNMFRGVZZ