Agreement Executed to Acquire Mobile Cruising and Screening Plant and Equipment for Tshimpala Project in Malawi
Force Commodities (Force or the Company) (ASX Code: 4CE) is pleased to announce that it has entered into an agreement with Malawian based engineering and construction company, Shire Civils Limited (Shire), for the acquisition of mobile crushing and screening equipment that is proposed to be used at the high-grade lead and silver Tshimpala Project, located in the Dowa District of the Republic of Malawi (Tshimpala Project).
The mobile crushing and screening equipment comprises a Metso Locotrack LT 106 Mobile Jaw Crusher, LT106, a Metso Locotrack LT 1213 Mobile Rotary Crusher and a Metso Locotrack ST 4.8 Mobile Screen capable of throughput of up to 250 tonnes per hour and producing four different sized products through the triple deck screens.
In addition, under the agreement, Shire will also be engaged to establish the platforms for the mobile equipment at the processing site, transportation of the mobile equipment from Lilongwe to the processing site, full commissioning of the mobile equipment and training of the Company’s planned employees from the surrounding communities, who will operate the equipment.
The second hand mobile crushing equipment is located in Lilongwe and is approx. 45km from the Tshimpala Project. The equipment has only 520 hrs operating hours (mobile jaw crusher and mobile screen) and 820hrs operating hours (mobile rotary crusher).
The mobile crushing and screening equipment, which is to be provided under an operating lease agreement with Shire, with equal payments scheduled over the initial 12 months of operations, was originally purchased as new, at a total cost of US$1.6m.
Shire is an established Malawian based engineering and civils construction company with over 55 years of operating experience in the country.
Shire has a large fleet of mobile plant and construction equipment, and operates aggregate quarries and has fully equipped modern materials testing laboratories in Lilongwe along with professional support staff and services in the fields of structural design, geology and geo-technical investigations as well as land surveying and mining
Commissioning and delivery of the mobile plant and equipment by Shire is scheduled to be completed at the Tshimpala Project site in the December 2019 quarter.
Commenting on the execution of the agreement to purchase the mobile crushing and screening equipment with Shire, Force Commodities Managing Director Jason Brewer said:
“Force is very pleased to be an investor in Malawi and in the Tshimpala Project through its shareholding in Swiss based TerraCare AG.”
“I’ve had the pleasure of being in-country over the past few weeks and meeting with a number of key stakeholders and have been very impressed with the overall investment environment and opportunities.”
“The progress being made with the various stakeholder engagements and material contracts being entered into, is an indication of the strength of the people we have involved at the Tshimpala Project and the in-country capabilities of local contractors and industry specialists.”
“We look forward to working with Shire in advancing the Tshimpala Project.”
Force Commodities Limited
Tel: +61 (0) 8 6426 1421
Chapter One Advisors
Tel: +61 433 112 9036
Forward looking statements
Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
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