Investee Company Operational Update

RNS Number : 5338A

Kennedy Ventures PLC

27 March 2017

 

27 March 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 Tantalite Valley Mine in Namibia ("TVM"), is pleased to provide an operational update from TVM.

Highlights:

•	Successful visit to TVM by a leading manufacturer of tantalum capacitors (the "Customer") as well as Namibian Government officials, with Aftan providing demonstrations of tantalum recovery both at the plant and the product room.
•	One metric tonne of product has been sold by Aftan to the Customer and they have requested an order of a further six metric tonnes for delivery during the quarter to June as part of a quality sampling programme.
•	Aftan's plant upgrades are progressing: -      A solar powered pump was installed to pre-fill the main transfer dam, to reduce diesel usage and to ensure the Plant Water Storage Systems are always available via the Transfer Dam feed. -      Thickener has been mounted and is being commissioned, which aims to reduce silt flowing to the main dam and adding essential water storage capacity. -      Refurbished Crusher Jaws installed, allowing for proper sizing during operations and to bring more consistent feed to the circuit. -      Added Quality Measurement Systems to all sampling points, allowing weekly reviews
•	A meeting between Aftan and local unions has been successful, with full approval for an extended shift granted.
•	Full commercial production at TVM is expected to start in Q2

Aftan's Mine Operations

In mid-February the Customer visited TVM to assess the progress that Aftan has made. Following the meeting, the Customer purchased one metric tonne of end product for testing. The Customer has now followed this initial purchase with a request for 6 metric tonnes for the quarter to June 2017 as part of a quality sampling programme to make certain the product suits their facilities and requirements. Ultimately, subject to the product meeting the Customer's required specifications, Aftan hopes to agree a permanent offtake agreement with the Customer. Furthermore, the Customer has introduced Aftan to the leading global tantalum powder smelter from Germany. The Customer has indicated that it will assist Aftan with developing this relationship.

Aftan has also successfully received approval from local unions to extend the shift time from eight hours to twelve, starting in the second week of April 2017, which is expected to allow full-scale commercial production at the mine to begin thereafter.

Plant Upgrades

As highlighted in the announcement of the 25^th of January 2017, Aftan's plant has undergone a number of upgrades. The Company has since been advised that the most recent progress has been as follows:

•	A solar powered pump was installed to pre-fill the main transfer dam, reducing diesel usage and ensuring the Plant Water Storage Systems are always available via the Transfer Dam feed;
•	Thickener has also been mounted and is currently being commissioned with an expected completion by March end, which is expected to reduce the silt to the main dam as well as adding water storage and distribution to the circuit;
•	Three more James Tables have also been added, improving the mines ability to improve customer demand per specifications;
•	The Crusher Jaws have been refurbished and are being commissioned, to allow proper sizing during operations to bring more consistent feed to the circuit; and
•	Quality Measurement systems have been added to all sampling points, allowing for weekly reviews.

Larry Johnson, CEO of Kennedy Ventures, commented:

"Aftan has made considerable progress in the year to date and is now in a position of strength both at the operational level and with onward sales. Aftan is confident that its product will meet the Customer's quality and specification tests and its work this calendar year means Aftan is now firmly positioned within a world-class supply chain. I expect the time spent over the last 6 months by Kennedy and Aftan ensuring TVM's operations are upgraded to the highest specification, to optimise output and quality - as well as to ensure the TVM is operating efficiently and cost effectively. In turn, we expect this will deliver value creation in the near and long term as Aftan aims for full scale commercial production in Q2 2017.

Aftan's management and I successfully met with the Namibian Miners Union, getting full approval to implement an extended shift from our current eight hours to twelve hours starting the second week of April. This allows Aftan to better utilise its labour, 99% of whom are Namibian, and provide for more wealth creation amongst the local community."

Kennedy Ventures plc
Larry Johnson (CEO), c/o Camarco	Tel: [phone]
Grant Thornton UK LLP (Nominated Adviser) Colin Aaronson Richard Tonthat Daniel Bush	Tel: [phone]
Shore Capital (Broker) Mark Percy / Toby Gibbs (corporate finance) Jerry Keen (corporate broking)	Tel: [phone]
Camarco (PR) Gordon Poole Billy Clegg James Crothers	Tel: [phone]

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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