Fox Marble completes acquisition of Omega Sivic quarry in Macedonia

18th Aug 2014 12:52

Fox Marble Holdings, the Kosovo-focused marble producer, has entered a sub-lease agreement with Malta-based New World Holdings in relation to the Omega Sivic marble quarry in Prilep, Macedonia, the company announced on Monday.The new quarry is adjacent to the group's existing operations in Prilep and the company said the consideration for the agreement is £1m plus a 40% gross revenue royalty."Following the placing to raise £4.75m last month, we are pleased to already be on track with regards to this acquisition," said Fox Marble's chief executive Chris Gilbert."Sivec is a highly sought after marble and key for the development of Fox Marble's portfolio. We look forward to updating shareholders with the progress of the Prilep Omega Sivec quarry."Fox Marble will pay for and provide all the equipment and staff required to operate the quarry, which the company estimates will require an investment of about £600,000 to reach commercial production.The sub-lease, which grants Fox Marble the exclusive right to quarry, process and sell marble from the quarry, has an initial term of 20 years but can be extended for a further 20 years, the company added.Fox Marble shares were up 3.21% to 16.90p at 11:50 on Monday.DC