EPO Signs Up Port Access

RNS Number : 5832V

Equatorial Palm Oil plc

10 August 2015

 



10 August 2015

EQUATORIAL PALM OIL plc

("EPO", the "Company" or, together with its subsidiaries, the Group)

EPO Signs Up Port Access

Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa, announces that its operating subsidiary LIBINC Oil Palm Inc ("LIBINCO") has signed a lease agreement with the National Port Authority of Liberia ("NPA") to lease land in order to build a palm product export facility at the port of Buchanan, which is 24km from EPO's Palm Bay estate.

The land leased at the port of Buchanan measures approximately 4.5 acres (the "Site") and is in close proximity to the wharf from which it is intended that vessels will load EPO's produce for onward shipping to its customers.

EPO's palm products, crude palm oil, crude palm kernel oil and palm kernel cake, will be trucked from Palm Bay estate to the port of Buchanan and stored at a tank farm which the Group intends to build on the Site.  In time, the tank farm will hold up to 10,000MT of palm oil. Construction of the perimeter fencing to delineate the leased land will begin immediately.

Geoffrey Brown, Executive Director of EPO, commented:

"This is a significant milestone for the Company. LIBINCO has been in discussions with the NPA for the lease of land at the port of Buchanan for over two years. The storage facility is a key infrastructure asset for the successful export of the Company's oil palm products. We are delighted to have this lease agreement now in place which further de-risks our operations."

The commercial terms of the lease agreement with the NPA include:

·      25 year term which may be renewed after 12 years for a further 13 years;

·      LIBINCO has the right to install all necessary infrastructure and security measures on the Site; and

·      Right of access and easements granted in favour of LIBINCO, allowing the loading of its products on ships berthed in the port.

Blocklisting

EPO also announces the cancellation with immediate effect of the blocklisting of the remaining 18,362,754 unallotted ordinary shares of 1 pence each in respect of warrants issued by the Company to placees at the time of its admission to AIM (the "Blocklisting"). The warrants that were the subject of the Blocklisting have now expired. No allotments have been made under this scheme since the Company's last Blocklisting update released on 13 February 2015.

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For further information, please visit www.epoil.co.uk or contact:

Equatorial Palm Oil plc Geoffrey Brown (Executive Director)	[phone]
Strand Hanson Limited (Nominated Adviser) James Harris / Andrew Emmott / James Bellman	[phone]
Mirabaud Securities LLP (Broker) Peter Krens	[phone]

Notes to editors:

Equatorial Palm Oil plc is an AIM listed crude palm oil developer with palm oil estates in Liberia, West Africa.  The Company was founded in 2005 and is focused on becoming a global, sustainable producer of high quality palm oil to regional and international markets.

With a significant land position in Liberia through its operating subsidiary LPD, the Company is geographically well positioned to serve the international and regional markets and is committed to making a positive impact on the communities in which it operates through investment in local schools, health clinics, housing and infrastructure. 

The Company's largest shareholder and 50:50 joint venture partner in LPD is Kuala Lumpur Kepong Berhad ("KLK"). KLK is one of the largest palm oil producers in the world and the Company will greatly benefit from their many years of expertise in oil palm development.

 

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