Aminex plc
("Aminex" or "the Company")
Financial and Operational Update
Aminex Becomes a Debt Free Producing Company
Aminex PLC ("Aminex" or the "Company")
is pleased to announce that it has repaid its corporate loan facility in full
and is now a debt-free producing company. The Company is arranging the release
of fixed and floating charges, which comprised the security package for the
loan.
Aminex confirms, following the exercise of warrants in May
2017, that all outstanding warrants have now been exercised and anti-dilution
provisions are no longer applicable. These warrants were issued as part of the
corporate loan agreement.
Ndovu Resources Ltd., Aminex's Tanzanian operating
subsidiary, continues to be paid for its Kiliwani North gas sales, despite some
delays in 2017, in US Dollars and this has facilitated early final repayment of
all outstanding corporate debt.
Operations
Production at Kiliwani North during 2017 has averaged
approximately 15 million cubic feet per day for the first five months of
2017.
The Company intends to re-enter the Kiliwani North 1 well to gather
downhole data later in the year and shareholders will be advised when this has
been implemented.
Work on the updated basin model for the Ruvuma acreage is
ongoing to evaluate deeper targets and liquids potential in the Basin. This
information will be incorporated in the Ntorya 3 drilling programme in order to
maximise target potential at greater depths. A development plan is
in preparation and the Company is working directly with the Tanzanian Petroleum
Development Corporation ('TPDC'). This will include early production
opportunities to be implemented prior to a longer-term project for tying a
fully appraised and developed gas field into the Madimba gas processing plant
and the national pipeline system.
The Company has noted and continuously monitors recent
political uncertainties which have arisen in the Tanzanian mining industry.
These are not believed to affect Aminex's domestic gas supply business, which
is for local consumption with gas metered and sold at wellhead by both TPDC and
Ndovu on a daily basis. Aminex as ever works closely with the TPDC and with the
Ministry of Energy and Minerals.
Jay Bhattacherjee, CEO of Aminex, commented:
"We are very pleased to be able to report the continued
progress which Aminex is making towards becoming a major player in East
Africa. Final repayment of the corporate loan facility is a major
milestone for Aminex and we would like to thank the debt providers who have
strongly supported the Company over the last four years. The
Company is financially robust, generating cashflow from production, has a very
exciting upcoming development programme and is looking to grow."
Ends