REG - Keras Resources PLC - Nayéga Update

Keras ResourcesAnnouncement

09/05/2024 07:00

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RNS Number : 6915N  Keras Resources PLC  09 May 2024

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

 

09 May 2024

 

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

 

Nayéga Update

 

Keras Resources plc (AIM: KRS) is pleased to announce that, following the
cooperation agreement signed with the Republic of Togo (the "State") on 17 May
2023 ("Agreement") related to the Nayéga Manganese mine ("Nayéga") in
Northern Togo, that activities have recommenced at Nayéga and the State,
through its 100% owned investment company Société Togolaise de Manganèse
("STM")  is currently managing a public-private partnership award procedure
("Tender") to appoint a contractor to manage all activities at Nayéga.

The services expected from the successful bidder include the management of all
mining and processing activities at Nayéga and a total logistics solution
from mine to port.  The tender process closes on 7 June 2024 and requires the
successful applicant to be fully mobilised within 6 months of the tender
award.  The State has already mobilised personnel at Nayéga to ensure that
the infrastructure, including water pipelines and access roads are in
operational condition to ensure timeous re-establishment of operations at
Nayéga.

 

The timing of the Tender process is very advantageous with regards the
manganese market which has rebounded recently from a prolonged low price
environment and the Nayéga mine, which is effectively production ready will
be able to produce into this rebound in a short period of time.

 

As announced in 2023, Keras has advisory and brokerage agreements with the
State where the Company will be paid an advisory fee of 1.5% of gross revenue
generated from the Nayéga mine for the provision of advisory services for 3
years and 6.0% of gross revenue generated from the Nayéga mine for the
provision of brokerage services for the lesser of 3.5 years or 900,000 tonnes
of beneficiated manganese ore produced and sold from Nayéga.

 

Graham Stacey, CEO of Keras, commented, "The mobilisation of key staff at
Nayéga and the issue of a request for tender for the management of the
Nayéga operation is a significant step forward in the development of this
asset which the Company fully supports and is very much in line with the 2023
cooperation Agreement we have with STM and sets a clear picture of how the
asset will now be developed to benefit all stakeholders including Keras. We
look forward to working closely with the management team of STM.

 

The progress at Nayéga is very positive for Keras from an additional cashflow
perspective and will underpin what has been a hugely productive 6 months at
the Company's flagship operation in Utah, USA where its subsidiary Falcon Isle
Resources Corp, now operating from its 100% owned facility in Delta, is
finalising the construction of a fully integrated granulator plant to produce
Phosul® granules under the joint venture with partners, Phosul LLC. The
Phosul® production line will augment the already installed processing
infrastructure producing sized dry rock phosphate products from the high-grade
Diamond Creek phosphate mine.  I look forward to updating shareholders on a
continuous basis as we move forward on these two fronts."

 

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 rock
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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