Eastinco Mining - trading update and LOI announcement
RNS Number : 3673L
Eastinco Mining and Exploration PLC
12 January 2021
 

 

Eastinco Mining and Exploration PLC

12th January 2021

 

 

12 January 2021

 

 

 

Off-Take Negotiations & Corporate Trading Update

 

Eastinco Mining and Exploration plc ("EME" or the "Company") announces that the Company is in advanced negotiation of an Offtake Agreement, provides a trading statement for the quarter ended 31 December 2020 and provides an update on recent events within Rwanda.

 

Letter of Intent for Metal Production Purchase

The Company has received a Letter of Intent ("LOI") from Kalon Resources ("Kalon"), a wholly owned subsidiary of multi-national Noble Group Holdings, to purchase a significant portion of the future tantalum and tin metal production from the Musasa operations over the next three years. Kalon will pay the prevailing Kigali market prices, currently approximately $110,000/tonne of tantalite concentrate (based on 100% Ta2O5). Payment is to be immediately upon both parties agreeing to the amount and grade of the concentrate and receipt of product, with these terms very beneficial to the Company's cash flow position. The Company will continue to negotiate the final terms of the Offtake Agreement, which will take effect once the temporary health restriction measures are eased and full production achieved.

 

Musasa Site Operations and COVID-19

During the quarter under review numerous positive modifications have been completed on the wash plant, resulting in improved heavy mineral separation. This optimization has been aided by the recruitment of a Rwandan Process Manager, with previous experience in this style of mineral recovery and will continue. A review of the hydro-cyclone and spiral operations, together with improvements to the shaking table launder box capture system has significantly improved the quality of the capture pre-concentrate. The large capacity water pump, ordered from the UK, arrived in late December and is ready for installation. This will ultimately allow for the completion of the commission phase and the commencement of full-time operations.

 

On the 4th of January 2021, the Company was notified that new health measures have been put into place to contain the spread of the COVID-19 virus within Rwanda. These measures include the restricting of movement across district boundaries and staffing limitations for all private and public institutions. A review of the measures will be undertaken by the Cabinet on or around the 18th of January 2021. Without the exclusion as an essential business, the measures significantly impact the Company's ability to fully restaff following the holiday season.  We continue to review and communicate with the relevant authorities to understand the situation and will update the market accordingly.

 

 

Trading Update

The Company is also pleased to announce that it has received approximately £150,000 (or $200,000) of share subscription for cash and services from the issue of 11,604,934 new ordinary shares and 11,604,934 3-pence warrants expiring in August 2024 by a new shareholder, and two existing shareholders. It is anticipated that the shares will be issued and admitted for trading by the 15th of January 2021. This capital is intended to allow for the Company to cover expenditure during the present COVID-19 lockdown until the start of operations. 

 

Executive Chairman, Charles Bray noted, "The receipt of the LOI from Kalon Resources, a strong international partner with global reach is a positive indication that even in the current difficult COVID environment there is strong interest in the development of our operations and products. I see this as an endorsement to our efforts in constructing the project. The additional capital injection provides flexibility and further supports our business model, and intentions to be a revenue producing business as soon as possible in 2021. I look forward to updating shareholders in the near future, once the operations re-commence and we achieve targeted full-time production rates."

 

The Directors take responsibility for this announcement.

 

Enquiries:

 

For further information, please visit http://www.eastinco.com/ or contact:

 

Eastinco Mining & Exploration Plc:

Charles Bray, Executive Chairman - charles.bray@eme-plc.com

Mike Staten, Director - mike.staten@eme-plc.com

 

AQSE Growth Market Corporate Adviser:

Alfred Henry Corporate Finance Limited

Nick Michaels and Jon Isaacs

www.alfredhenry.com

Tel: 0203 772 0021

 

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