Capital Limited New Contract Award - Firefinch, Mali (9687E)
12 November 2020 - 6:00PM
UK Regulatory
TIDMCAPD
RNS Number : 9687E
Capital Limited
12 November 2020
For Immediate Release 12 November 2020
Capital Limited
("Capital", the "Group" or the "Company")
New Contract Award - Firefinch, Mali
Capital (LSE: CAPD), a leading mining services company focused
on the African markets, is pleased to announce the award of a new
contract and subsequent mobilisation of an initial four drill rigs
to Firefinch Limited's ("Firefinch") Morila Gold Mine ("Morila") in
Mali. The rigs are part of Capital's existing West African fleet
and will undertake an extensive delineation program under a
two-year preferred contractor agreement between Firefinch and
Capital. The first rig is now on site, with the balance scheduled
to arrive during the current quarter.
Firefinch (ASX: FFX), rebranded from Mali Lithium earlier this
month, recently announced the acquisition of Morila, a
transformational transaction which immediately transitions the
company to a gold producer. Morila, previously owned by Barrick
Gold Corporation and AngloGold Ashanti, has historically produced
7.4moz of gold. The acquisition includes a 4.5mtpa plant, 1.3moz of
gold resources and established on-site infrastructure including
mill, crushers, diesel power station, laboratory and associated
support infrastructure. Current gold production from the processing
of tailings provides immediate cash flow to support ongoing
redevelopment of the mine.
Firefinch intends to invest heavily in drilling programmes at
the mine and surrounding targets, citing it had been more than a
decade since any major drilling programs had been undertaken on the
Morila licenses. As such, it will immediately commence drilling all
four deposits at and around the mine. Firefinch intends to commence
mining operations from the satellite pits in 2021.
Under the preferred contractor arrangement, Capital and
Firefinch will work closely together on the drill programmes and
assess opportunities for additional services as the mine
transitions back to traditional mining operations.
The contract with Firefinch further strengthens Capital's
footprint in Southern Mali, complementing our existing long-term
contracts with Hummingbird Resources (Yanfolila) and Resolute
Mining (Syama).
Commenting on the trading update, Jamie Boyton, Executive
Chairman, said:
"Capital looks forward to assisting Firefinch in its transition
into a mid-tier gold producer in Mali through our preferred
contractor agreement at their recently acquired Morila Gold Mine.
Firefinch has a robust plan for drilling activity at the mine and
adjacent targets in the immediate future, and we are excited to be
working closely with them on these programmes. Given our capability
to provide a complete range of mining services, we will also work
with Firefinch to identify other opportunities for service delivery
as Morila transitions back into traditional mining activities."
- ENDS -
For further information, please visit Capital Limited's website
www.capdrill.com or contact:
Capital Limited +230 464 3250
Jamie Boyton, Executive Chairman investor@capdrill.com
André Koekemoer, Chief Financial Officer
Rick Robson, Executive - Corporate Development
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Wyllie
Detlir Elezi
Tamesis Partners LLP +44 20 3882 2868
Charlie Bendon
Richard Greenfield
Buchanan +44 20 7466 5000
Bobby Morse capital@buchanan.uk.com
Kelsey Traynor
James Husband
About Capital Limited
Capital Limited is a leading mining services company providing a
complete range of drilling, mining, maintenance and geochemical
laboratory solutions to customers within the global minerals
industry, focusing on the African markets. The Company's services
include: exploration, delineation and production drilling; load and
haul services; mining equipment hire and maintenance; and
geochemical analysis. The Group's corporate headquarters are in
Mauritius and it has established operations in Botswana, Burkina
Faso, Côte d'Ivoire, Egypt, Guinea, Mali, Mauritania, Nigeria,
Saudi Arabia and Tanzania.
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