Operational Update

RNS Number : 8690N

Kennedy Ventures PLC

03 February 2016

 

3 February 2016

Kennedy Ventures plc

("Kennedy Ventures" or "the Company")

Operational Update 

First Delivery to the Offtake Partner Expected in February

Kennedy Ventures plc which is presently focused on tantalite production through its 75% holding in African Tantalum (Pty) Limited ("Aftan"), is pleased to provide a production update to Aftan's Tantalite Valley Mine ("the Mine") in Southern Namibia.

First delivery of the Mine's high grade Tantalite concentrate to the offtake partner is now expected to take place at the end of February 2016. Full receipt of the explosives magazines licences (the "Explosives Licences") has enabled Aftan to take delivery of, and store, explosives at the Mine.

Highlights:

·   Blasting faces had been fully prepared and blasting is now taking place at all four main adits of the Homestead deposit, generating substantial volumes of underground high grade ore. Blasting commenced later than anticipated due to an unexpected delay in receiving the Explosives Licences.

·  Plant tonnages continue to ramp up to the planned 10,500 tonnes per month, with increasingly improved performance and delivery of high grade concentrate. Throughput will be stabilised at 46 tons per hour at an average expected ore feed grade of 400ppm.

·   Demand from the offtake partner remains high with further negotiations taking place to establish a structure to assist utilising near term cash flow to finance new investments in the sector.

Peter Hibberd, CEO of Kennedy Ventures said:

"The Company's investment in Aftan continues to represent the launch pad for Kennedy Ventures to take advantage of further investment opportunities in the sector. After a slight delay, Aftan is now positioned to deliver substantially improved performance from both mine and plant.

Blasting of adit ends now occurs daily with visible tantalite occurring in a number of places and with first delivery to the offtake partner expected at the end of the month it will soon be entering a phase of cash flow generation.

I would like to thank Aftan's mine staff for their continued efforts and dedication as we enter this exciting period for the Company."

ENDS

For further information, please contact:

Kennedy Ventures plc		020 3757 4983
Peter Hibberd c/o Billy Clegg
Cenkos Securities (Nominated Adviser and Joint Broker)		0131 220 6939
Derrick Lee / Nick Tulloch
Shore Capital (Joint Broker)		020 7408 4090
Mark Percy / Toby Gibbs (corporate finance)
Jerry Keen (corporate broking)
		020 7469 0935
Camarco
Billy Clegg / Gordon Poole / Tom Huddart		020 3757 6983

Background on Tantalite / Tantalum

Tantalite concentrates form the vast majority of feedstock for all tantalum products. As such they are critical and unreplaceable parts of a wide range of modern electronics including computers, tablets, mobile phones, motor components and video game systems.

Aside from electronics, tantalum has significant usage in super alloys, specialised steels, corrosion resistant equipment and medicine.

Tantalum's applications are based on its unique physio - chemical properties. The oxides and metal have extremely high melting points, high heat conductivity and strong resistance to corrosive environments. Combined, these factors have entrenched its international demand and made it an important component of numerous research projects and new technologies.

Trade pricing is following tantalum markets as per Asian Metals and Metal Pages.

In August 2012, the US Securities and Exchange Commission adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require companies reporting to the SEC to publicly disclose the origins of the tantalum they buy in order to restrict the use of conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country.  As a result, users of tantalum are encouraged to demonstrate that their supply chain is transparent to ensure that conflict-free tantalum is procured.

It is intended that the tantalum produced by Aftan will be conflict-free.

 

END

 

 

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