REG - Keras Resources PLC - Commissioning of Integrated Delta Processing Plant

Keras ResourcesAnnouncement

03/06/2024 07:00

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RNS Number : 7496Q  Keras Resources PLC  03 June 2024

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

 

3 June 2024

 

Keras Resources plc ('Keras' or the 'Company')

 

Commissioning of Integrated Delta Processing Plant

Keras Resources plc (AIM: KRS) ("Keras") is pleased to announce that dry
commissioning ("C1"), of its Integrated Granulator Plant ("Granulator Plant")
at its newly acquired Delta processing facility ("Delta") has commenced on
schedule. C1 involves energisation of motors for directional checking,
start-up sequencing, instrument set-up and confirmation that all installed
items meet design requirements under no-load conditions without dry feed
materials or binding and dust control liquids. With all equipment installed,
C1 is a significant milestone for Keras's 100% owned Falcon Isle Resources
Corp ("Falcon Isle").

 

Given the scale of what was required to transition from an outsourced
production and ownership model operating from three rental facilities to the
Company's wholly owned, fully integrated production facility at Delta in just
four months, which was underpinned by the conclusion of the Phosul Utah LLC
joint venture ("JV") as announced on 22 January 2024, has been an outstanding
achievement by the project team as well as the Company's supportive funding
partners.

 

The project team will now work towards wet commissioning under load conditions
with granulator binder fluids ("C2") during the first half of June 2024 which
will initially comprise test granulation of Falcon Isle's rock phosphate
before introducing the additional constituents of the Phosul® final product.
The Granulator Plant has a nameplate capacity of 5 tonnes per hour of finished
product. At steady-state single shift operation, the Granulator Plant is
planned to produce approximately 520 tons per month ("tpm"), working towards
upgrading to double shift operations during the fourth quarter of 2024 to
produce approximately 920tpm of saleable bulk Phosul® granules. The Phosul®
formula comprises 80% of 50 mesh PhosAgri feed produced from ore mined at the
Diamond Creek mine, Falcon Isle's wholly owned, high grade organic phosphate
mine. Falcon Isle currently holds inventory of approximately 4,250tons of 50#
PhosAgri product, sufficient to cover Granulator Plant operations for the rest
of 2024 which, importantly, will have a positive impact on cashflow with all
mining and crushing costs already expensed.

 

Graham Stacey, CEO of Keras, commented, "Having made the decision to migrate
operations from Spanish Fork, acquiring the Delta Property and achieving C1
commissioning on schedule in the space of four months has been an outstanding
achievement from both our project team but also with the support of our
funding partners.

 

As we now move into C2 commissioning and build up to steady-state commercial
production of Phosul® granules, the value add of the Phosul Utah LLC JV will
underpin our traditional PhosAgri markets and significantly increase the
footprint of our sales in North America. Having the Phosul LLC team as
partners, who have five years of both producing and importantly marketing
Phosul® from their Sugar City, Idaho facility is key to achieving our growth
strategy and we look forward to working with their team going forward.

 

As always, I encourage shareholders and potential investors to view our social
media posts to get a sense of the physical progress achieved in Delta to date.
I look forward to updating shareholders on progress as we now move towards the
final commissioning and ramp-up phase of the integrated Granulator Plant."

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under Article 7 of the Market
Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the
domestic law of the United Kingdom by virtue of the European
Union (Withdrawal) Act 2018 (as amended). Upon the publication of this
announcement via the Regulatory Information Service, this inside information
is now considered to be in the public domain.

 

**ENDS**

 

For further information please visit www.kerasplc.com
(http://www.kerasplc.com/) , follow us on Twitter @kerasplc or contact the
following:

 

 Graham Stacey                         Keras Resources plc             info@kerasplc.com

 Nominated Adviser & Joint Broker      SP Angel Corporate Finance LLP  +44 (0) 20 3470 0470

 Ewan Leggat / Caroline Rowe

 Joint Broker                          Shard Capital Partners LLP      +44 (0) 207 186 9900

 Damon Heath / Erik Woolgar

Notes:

Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic phosphate
mine in Utah, US. Diamond Creek is one of the highest-grade organic
phosphate deposits in the US and is a fully integrated mine to market
operation with in-house mining and processing facilities. The operation
produces a variety of organic phosphate products that can be tailored to
customer organic fertiliser requirements.

 

The Company is focused on continuing to increase market share in the
fast-growing US organic fertiliser market and build Diamond Creek into the
premier organic phosphate producer in the US.

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