LONDON, UK, Dec. 3 /CNW/ - Namibian Minerals Corporation (Namco) today
announced that it had finalised a US$25 million Project Loan facility from
HSBC Equator Bank plc (HSBC)and Nedbank Africa, a division of Nedcor Bank Ltd.
(Nedcor) for the Company's second marine diamond mining system for operation
off the coast of Namibia. The Nedcor portion of the Project Loan is
underwritten by Credit Guarantee Insurance Corporation of Africa Ltd. (CGIC),
in co-operation with the South African Government.
The US$25 Project Loan is expected to cover the entire cost of
construction of the marine diamond mining system Nam II, a 100 tonnes per hour
processing plant, additional vessel equipment including Nam II's launch and
recovery system and software control system, commissioning costs and financing
fees. The Project Loan is repayable over six years and has a fixed interest
rate of 6.75% p.a.
Namco is the project manager for the design, construction and
commissioning of the project, which is scheduled to start commissioning in the
third quarter of 2000. Construction of the Nam II mining system is well
advanced in Cape Town, South Africa. Nam II, weighing 160 tonnes, is based on
the same design principles as the present NamSSol, which has been operating
off the Namibian coast since April 1998. Nam II's enhancements including a
1.8 megawatt dredge pump, two rotating cutters and water jets to access
diamond bearing material in varying geological terrain. Nam II is designed to
operate in water depths of up to 200 metres and penetrate eight metres of
sediments including clay and sandstone layers. The ability to recover over
1000 tonnes per hour is a further technological innovation, allowing
profitable mining even in lower grade areas.
The Company has concluded a charter agreement over an 8000 tons former
British Royal Navy vessel, which is currently being converted at the Owners'
cost in Gdansk, Poland. The vessel will be renamed MV Ya Toivo, in honour of
Namibia's first Minister of Mines and Energy, The Hon. Andimba Toivo ya Toivo,
MP, who is presently the Minister of Labour.
Construction of Nam II is scheduled for completion in February 2000.
Vessel modifications will continue throughout the first quarter of next year
and the vessel is expected to sail to Cape Town in the second quarter.
Commissioning is targeted to commence third quarter.
The Company is increasing its 1999 production target of 260 000 carats to
a minimum of 400 000 carats in 2000. By the end of 2000 the Company expects to
achieve a production rate in excess of 500 000 carats on an annualised basis,
reflecting rising production from Nam II and the consolidation of Ocean
Diamond Mining (ODM). Further production increases are planned from the
introduction of additional mining systems into ODM's Mining Licences.
"Our NamSSol technology has revolutionised the marine diamond industry.
Nam II builds on this success boosting capability and improving mining
economics. It will be the world's largest and most effective subsea diamond
mining system", said Alastair Holberton, Chairman and CEO of Namco.
Namco is the largest independent marine diamond producer operating off
the coast of Namibia using proprietary leading-edge marine mining technology.
The Company recently announced its successful acquisition of ODM, Africa's
third largest marine diamond producer. Earnings for the nine months ended 30
September 1999 were US$16 million, US$0.42 per share. The Company paid its
first dividend earlier this year.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF NAMIBIAN
MINERALS CORPORATION
(Signed)
J.A.Holberton Chairman & Chief Executive Officer
Neither The Nasdaq Stock Market, The Toronto Stock Exchange, nor the
Namibian Stock Exchange has reviewed the information herein and do not accept
responsibility for the adequacy or the accuracy of the above.
This Media Release contains forward looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such forward
looking statements are operational factors, general economic conditions and
the risk factors detailed from time to time in the Company's periodic reports
and registration statements filed with the Securities and Exchange Commission.
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For further information: please contact Megan Williams on tel
+ 44 171 824 8900 or email mwilliams@nam-corp.com
PHIL |
