New Contract Award - Geita Gold Mine, Tanzania

RNS Number : 4680W

Capital Limited

22 December 2021

 

For Immediate Release

22 December 2021

Capital Limited

("Capital", the "Group" or the "Company")

CMS (Tanzania) Limited New Contract Award - Geita Gold Mine, Tanzania

Capital (LSE: CAPD), a leading mining services company focused on the African markets, is pleased to announce its Tanzanian subsidiary company, CMS (Tanzania) Limited, has been successfully awarded a surface production drilling contract with AngloGold Ashanti with its GEITA GOLD MINE LIMITED in Tanzania.

CMS (Tanzania) Limited is an 80:20 joint venture with local company CK Washirika Limited. The joint venture, which is fully compliant with the local content law in Tanzania, demonstrates Capital's commitment to building capabilities and supporting local communities.

The three-year contract will utilise five rigs from the existing fleet, together with the acquisition of one new rig during 2022, to continue provision of blast hole drilling services at the Geita mine, bringing the total number of rigs operating on site to 25.

The new contract supplements the two existing three-year contracts, a surface drilling contract for exploration and grade control services and an underground contract for grade control and exploration drilling services, both of which were renewed in H1 2021 and are also fully compliant to local content laws in Tanzania.

This contract further cements Capital's long-term relationship with AngloGold Ashanti, which started with the provision of grade control drilling services at the Geita site in 2006 and will now extend to 2025.

The production drilling contract started in December 2021 and is anticipated to generate revenues of $33 million over the contract term.

Commenting on the new contract awards, Jamie Boyton, Executive Chairman, said:

"We are pleased to maintain our long-standing relationship with AngloGold Ashanti at their Geita Gold Mine with the award of this new long-term contract. The contract continues Capital's delivery of production drilling to the site and reflects the team's excellent operational and safety performance in providing drilling services to the Geita mine for more than 15 years. Importantly, the contract award also supports our strategy of building the sustainability of the business by maintaining the portfolio of long-term mine-site based clients."

ENDS -

For further information, please visit Capital's website www.capdrill.com or contact:

Capital Limited     [phone]

Jamie Boyton, Executive Chairman    [e-mail]

Giles Everist, Chief Financial Officer

Conor Rowley, Investor Relations & Corporate Development Manager

Berenberg    [phone]

Matthew Armitt

Jennifer Wyllie

Detlir Elezi  

Tamesis Partners LLP    [phone]

Charlie Bendon 

Richard Greenfield

Stifel Nicolaus Europe Limited   [phone]

Ashton Clanfield

Callum Stewart

Rory Blundell

Buchanan    [phone]

Bobby Morse    [e-mail]

James Husband

About Capital Limited

Capital Limited is a leading mining services company providing a complete range of drilling, mining, maintenance and geochemical laboratory solutions to customers within the global minerals industry, focusing on the African markets. The Company's services include: exploration, delineation and production drilling; load and haul services; mining equipment hire and maintenance; and geochemical analysis. The Group's corporate headquarters are in Mauritius and it has established operations in Burkina Faso, Cameroon, Côte d'Ivoire, Egypt, Guinea, Kenya, Mali, Mauritania, Nigeria, Saudi Arabia and Tanzania.

 

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