Dekeloil Public Limited Cashew Processing Project Update (0891W)
30 July 2018 - 4:01PM
UK Regulatory
TIDMDKL
RNS Number : 0891W
Dekeloil Public Limited
30 July 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
30 July 2018
DekelOil Public Limited ("DekelOil" or the "Company")
Cashew Processing Project Update
DekelOil Public Limited, the West African focused agricultural
company, is pleased to announce the appointment of a new senior
management team at Capro CI S.A ('Capro') to oversee the
development of the large scale raw cashew nut ("RCN") processing
project at Tiebissou in Cote d'Ivoire. The team has been ratified
by Capro's board and includes executives who played a key role in
the successful construction and commissioning of DekelOil's
70,000tpa mill at its 100% owned palm oil project in Ayenouan, Cote
d'Ivoire. Operations at Tiebissou are targeted to commence in Q3
2019 at an initial rate of 10,000tpa. As announced on 26 June 2018,
DekelOil has an option to acquire a 58% interest in Capro.
Capro's new senior management team includes:
-- Mr Eyal Timmor who has been appointed local CEO. Between
2013-2016, Mr Timmor was CEO of the Company's subsidiary, DekelOil
Côte d'Ivoire SA, during which he played an integral role in
DekelOil's transition from a development to a production
company.
-- Mr Karl Heinz Schmelzer, a highly experienced engineer, who
will oversee equipment procurement and construction, including
civil works. Mr Smeltzer performed a similar role for DekelOil's
palm oil project at Ayenouan.
-- Mr Busamwar Shyam Rajeshwar, who as Mill Manager will be
responsible for managing the mill at Tiebissou. Mr Rajeshwar has
extensive experience operating cashew processing operations in
India, including with Olam International, the third largest
agri-business in the world.
-- Mr Eldad Erel, the current CEO of Capro, who will assume the
position of Executive Director and will be responsible for
overseeing raw cashew procurement as feedstock for the mill from
local smallholders in the area.
The Capro team is currently working on completing the tendering
process and the final financing package for the cashew plant at
Tiebissou. The total cost to build and commission the 10,000 tpa
plant is estimated at US$15 million, which is made up of US$6
million for working capital and US$9 million for the construction
of the processing plant. To date Capro has secured US$12.5 million
financing, including a 7-year US$5.0 million plant development
interest only loan from BIDC at a rate of 8.5% for the first 24
months; and a US$7.5 million RCN stock financing loan with an
interest rate of 8.7%. Capro is currently considering offers for a
US$2.5 million capital facility from a number of Côte d'Ivoire
local banks, as well as a credit line facility with a local bank
for up to approximately US$1.8 million with an 8% interest
rate.
DekelOil Executive Director Lincoln Moore said, "We know Capro's
new management have the credentials to deliver the initial
10,000tpa cashew processing plant at Tiebissou on time and on
budget, as it includes members of the team which played a key role
in the construction and commissioning of our palm oil project at
Ayenouan within just 12 months of DekelOil's Admission to AIM in
2013. Thanks to a major shortfall in in-country cashew processing
capacity, attractive margins associated with generating value-add
cashew products, and a 13-year corporate tax exemption, Tiebissou
has the potential to become a major source of revenues and profits
for DekelOil for many years to come. With this in mind, we look
forward to providing further updates on the completion of the
tendering process and the final finance package, ahead of embarking
on the construction phase of the plant in the next few months."
** ENDS **
For further information please visit the Company's website or
contact:
DekelOil Public Limited
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Cantor Fitzgerald Europe (Nomad and
Joint Broker)
David Foreman
Richard Salmond +44 (0) 207 894 7000
VSA Capital (Joint Broker)
Andrew Monk (Corporate Broking) +44 (0) 203 005
Andrew Raca (Corporate Finance) 5000
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Megan Dennison
Frank Buhagiar +44 (0) 207 236 1177
Further information
Tiebissou is being developed by Pearlside Holdings Ltd
("Pearlside") through its wholly owned subsidiary Capro CI SA
('Capro'). As announced on 26 June 2018, DekelOil has secured an
option to acquire 58.5% of the existing issued share capital of
Pearlside. Subject to DekelOil electing to exercise its option,
Tiebissou will become DekelOil's third project in Côte d'Ivoire
alongside Ayenouan, which produced 38,736 tonnes of Crude Palm Oil
in 2017; and Guitry, a second 'seed to oil' palm oil project which
is currently under development.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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