KRS Keras Resources Plc

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

09 May 2024

Keras Resources plc ('Keras' or the 'Company')

Nayéga Update

Keras Resources plc (AIM: KRS) is pleased to announce that, following the cooperation agreement signed with the Republic of Togo (the "State") on 17 May 2023 ("Agreement") related to the Nayéga Manganese mine ("Nayéga") in Northern Togo, that activities have recommenced at Nayéga and the State, through its 100% owned investment company Société Togolaise de Manganèse ("STM")  is currently managing a public-private partnership award procedure ("Tender") to appoint a contractor to manage all activities at Nayéga. 

The services expected from the successful bidder include the management of all mining and processing activities at Nayéga and a total logistics solution from mine to port.  The tender process closes on 7 June 2024 and requires the successful applicant to be fully mobilised within 6 months of the tender award.  The State has already mobilised personnel at Nayéga to ensure that the infrastructure, including water pipelines and access roads are in operational condition to ensure timeous re-establishment of operations at Nayéga.

The timing of the Tender process is very advantageous with regards the manganese market which has rebounded recently from a prolonged low price environment and the Nayéga mine, which is effectively production ready will be able to produce into this rebound in a short period of time.

As announced in 2023, Keras has advisory and brokerage agreements with the State where the Company will be paid an advisory fee of 1.5% of gross revenue generated from the Nayéga mine for the provision of advisory services for 3 years and 6.0% of gross revenue generated from the Nayéga mine for the provision of brokerage services for the lesser of 3.5 years or 900,000 tonnes of beneficiated manganese ore produced and sold from Nayéga.

Graham Stacey, CEO of Keras, commented, "The mobilisation of key staff at Nayéga and the issue of a request for tender for the management of the Nayéga operation is a significant step forward in the development of this asset which the Company fully supports and is very much in line with the 2023 cooperation Agreement we have with STM and sets a clear picture of how the asset will now be developed to benefit all stakeholders including Keras. We look forward to working closely with the management team of STM.

The progress at Nayéga is very positive for Keras from an additional cashflow perspective and will underpin what has been a hugely productive 6 months at the Company's flagship operation in Utah, USA where its subsidiary Falcon Isle Resources Corp, now operating from its 100% owned facility in Delta, is finalising the construction of a fully integrated granulator plant to produce Phosul® granules under the joint venture with partners, Phosul LLC. The Phosul® production line will augment the already installed processing infrastructure producing sized dry rock phosphate products from the high-grade Diamond Creek phosphate mine.  I look forward to updating shareholders on a continuous basis as we move forward on these two fronts."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

**ENDS**

For further information please visit www.kerasplc.com, follow us on Twitter @kerasplc or contact the following:

Notes:

Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic rock phosphate mine in Utah, US. Diamond Creek is one of the highest-grade organic phosphate deposits in the US and is a fully integrated mine to market operation with in-house mining and processing facilities. The operation produces a variety of organic phosphate products that can be tailored to customer organic fertiliser requirements.

The Company is focused on continuing to increase market share in the fast-growing US organic fertiliser market and build Diamond Creek into the premier organic phosphate producer in the US.