24 May 2011 10:50
CONSOLIDATED GENERAL MINERALS PLC
Joint Venture with the CalMe group
24 May 2011 - Consolidated General Minerals plc ("CGM" or the "Company") announces that it has entered into an agreement whereby Cal.Me S.p.A. ("Calme") and the Company will jointly build and operate a clinker grinding mill and cement packing plant in the Sofala Province, Mozambique. Calme, a private family managed company, is a leading cement and lime producer in Italy with a strong engineering culture. Calme will be the joint venture's EPCM contractor.
The plant will have a design capacity of 110 tonnes per hour and will supply quality cement at a reasonable price to the growing local market and certain export markets in landlocked Zimbabwe, Zambia, Malawi and the Katanga Province (DRC). Calme and CGM have agreed to a minimum equity funding commitment of USD 8 million. CGM's minimum equity commitment is USD 4 million. The balance of the project funding will be raised from third party financial institutions.
Engineering design is well advanced and preparatory work on the industrial site in Beira, including an environmental impact study has been initiated. Construction of the plant is expected to take approximately 12 to 14 months after securing the necessary approvals primarily the environmental license.
Commenting on the agreement Robert Adair, Chairman of CGM said: "We are pleased to have our first project under our investing policy now in progress. We are very positive about our future relationship with the Calme group and look forward to commencing construction of the plant shortly. The Company has a number of additional projects in development aligned to the investing policy and we look forward to progressing these in the near term."
For further information contact:
Consolidated General Minerals plc |
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Robert Adair, Chairman | + 44 (0)7872 930 114 |
Jean-Pierre Conrad, Executive Director | + 41 (0)79 601 51 59 |
Brewin Dolphin (Nomad) |
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Alex Dewar | + 44 (0)131 529 0276 |
Threadneedle Communcications |
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Laurence Read | + 44 (0)20 7653 9855 |
Notes to Editors:
Consolidated General Minerals plc's ("CGM") investment policy is to create shareholder value by identifying and acquiring holdings in businesses and ventures active in natural resources with a particular focus on the minerals (including industrial minerals) and metals sectors. At 31 December 2010 CGM had net assets of $20.9 million and no long-term debt or borrowings. As of the date of this release, the Company has approximately USD 20.3 million of cash on hand.