BMR Group signs off-take agreement with African Compass International

8th Aug 2016 09:22

(ShareCast News) - BMR Group has signed an off-take and purchase agreement with African Compass International (ACI) to provide funding for the construction of the Kabwe mine in Zambia.The agreement provides for the off-take by ACI over a minimum five-year period, beginning within six months of commissioning of the Kabwe plant, of a minimum of 500 tonnes per month of agricultural grade zinc sulphate heptahydrate, 300 tpm of lead sponge and 300 tpm of LME grade 'A' electrolytic zinc cathodes, each to a specified quality. BMR said it was estimated that sales of the minimum quantities of these three products from the plant, as it is proposed to be configured, would generate gross revenue of at least $750,000 per month at current prices.The agreement also provides that ACI will agree to make available to BMR in September 2016 a trade finance facility of $3.5m, which BMR intends to use to finance in part the construction of the plant at Kabwe. BMR chairman Alex Borrelli said: "We are delighted to have secured an additional loan facility, now agreed at $3.5m, which further substantiates our planned Kabwe operations. Our continuing progress on our schedule of works at Kabwe remains in line for completing the plant construction for commissioning in early 2017."At 0950 BST, BMR shares were up 10.5% to 6.08p.