North River Resources Plc Company Update (1584I)
August 26 2016 - 1:00AM
UK Regulatory
TIDMNRRP
RNS Number : 1584I
North River Resources Plc
26 August 2016
North River Resources plc / Ticker: NRRP / Index: AIM / Sector:
Mining
North River Resources plc
("North River" or the "Company")
Company Update
Update on Namib Mining Licence application and proposed
empowerment legislation in Namibia, and the appointment of
directors to the Board of Namib Lead & Zinc Mining
(Proprietary) Limited ("NLZM)
North River Resources plc, the AIM quoted resource company,
wishes to advise that NLZM, its wholly owned Namibian subsidiary,
provides the following update on its proposal submitted to the
Namibian Ministry of Mines and Energy ("the Ministry") in respect
of its Namib Project ("the Project") mining licence
application.
NLZM's proposal is made pursuant to the Ministry having given
NLZM a Notice of Preparedness to Grant a mining licence (as
initially announced on 1 February 2016), such proposal to relate to
certain supplementary terms and conditions on which such mining
licence is to be granted.
Mining licence proposal submitted to Ministry of Mines and
Energy
As also previously announced on 26 April 2016, NLZM had
submitted a formal proposal to the Ministry in respect of its
mining licence application. The proposal, on NLZM's structure and
composition, sought to address the Government of the Republic of
Namibia's objectives of poverty eradication by: (i) providing an
opportunity for local ownership of the Namib Project; (ii)
participation by historically disadvantaged Namibians in the
management of the Namib Project; and (iii) implementing a corporate
social responsibility strategy (the "ML Supplementary Conditions
Proposal").
As per the process set out in the Notice of Preparedness to
Grant, the Ministry then had 30 days to review and respond to the
Company on its ML Supplementary Conditions Proposal. As previously
announced, the Ministry informed NLZM on 2 June 2016 that it was
still reviewing the ML Supplementary Conditions Proposal and that
it would respond to NLZM within a further 30 days, being on or
before 2 July 2016.
The Ministry has now advised that their review continues in
progress and that it will respond as soon as possible. No revised
date or timeframe within which the Company can expect to receive a
response has been given by the Ministry. While the Company looks
forward to continuing to work with the Ministry on agreeing the
terms and conditions to the grant of the mining licence, the
duration and outcome of these discussions remain uncertain and the
final issue of the Mining Licence on commercially acceptable terms
cannot be guaranteed.
Proposed National Equitable Economic Empowerment Bill ("NEEEF
Bill" or "Bill")
In conjunction with agreeing terms & conditions attaching to
the Mining Licence, the Company also continues to examine the
implications of the Government of the Republic of Namibia's
proposed introduction of broad based empowerment legislation. As
previously announced, a first draft of the NEEEF Bill was published
in February 2016 for a period of public consultation and can be
found on the website of the Office of the Prime Minister
(www.opm.gov.na/web/opm/neee-bill). Following an extended period of
public consultation, a second draft of the NEEEF Bill is now under
further review and stakeholder consultation. The second draft of
the NEEEF Bill clarifies that the legislation would apply to both
existing and new business but otherwise remains largely unchanged
from the first draft. Indications from the Namibian Government
suggest that this proposed legislation will go ahead and be enacted
into law but timing remains uncertain. If enacted, the NEEEF Bill
will set out obligations for companies, irrespective of sector, in
respect of, inter alia, ownership and management participation by
previously disadvantaged Namibians. Certain obligations under the
draft Bill are inconsistent with those laid down under the terms
& conditions to the Notice of Preparedness to Grant. The extent
to which the NEEEF Bill would place additional obligations on the
Namib Project remains unclear. It is an area on which the Company
and Namibian mining industry as a whole will seek and need further
clarity in due course.
Appointment of new directors to the Board of Namib Lead &
Zinc Mining (Pty) Ltd ("NLZM")
The Company is pleased to announce that Asser Kapere, Ratonda
Katjivikua, and Francois du Plessis have been appointed to the
board of directors of wholly owned Namibian company, NLZM, the
holder of the Namib project. Mr Kapere has been appointed Chairman
of this board.
Asser Kuveri Kapere (65) is currently Chairman and founder of
the Erongo Development Foundation, a non-profit organisation aimed
at facilitating financial resources, technical assistance and other
means of support from donor agencies to community members and
organisations involved in poverty alleviation efforts in the Erongo
Region. Mr Kapere has in the past served in several senior
political positions and offices in Namibia following independence,
including in the Cabinet as Deputy Minister for Works, Transport
and Communication from 2002 to 2004 and then Chairman of the
National Council of Namibia from December 2004 to 2015.
Ratonda Engelhardine Katjivikua (48) was Human Relations Manager
and then Corporate Relations Manager for Langer Heinrich Uranium
(Pty) Ltd, a uranium mining company in Namibia which is a member of
the Paladin Energy Ltd group from October 2006 to December 2015
where she had wide ranging involvement in the management team,
including strategic planning, human resources and organisation
development, stakeholder relations, and corporate social
development programmes.
Francois du Plessis (45) is a qualified UK solicitor and member
of the management team of Greenstone Capital LLP, the UK based
investment advisor to Greenstone Resources, the Company's largest
cornerstone investor. Mr du Plessis has over 11 years' experience
in the mining sector and was previously a Senior Associate at the
law firm Maitland Advisory LLP in both Paris and London before
becoming Strata Capital LLP's general counsel in 2008 where he was
an integral part of the formation of Zanaga Iron Ore Company and
Ncondezi Coal Company. Mr Du Plessis joined Greenstone in 2014.
James Beams is also a director of NLZM.
North River CEO James Beams commented "I am very pleased with
the new appointments to the board of NLZM. North River is at a
critical juncture as we seek to advance our mining licence
application and take the Namib Project forward to a construction
decision, and the combined skills and experience of the new board
members of NLZM will greatly strengthen the leadership of the
group".
**ENDS**
For further information please visit www.northriverresources.com
or contact:
James Beams North River Resources Tel: +44 (0)
Plc 20 7025 7047
Andrew Emmott / Ritchie Strand Hanson Limited Tel: +44 (0)
Balmer 20 7409 3494
Jonathan Williams / RFC Ambrian Limited Tel: +44 (0)
Kim Eckhof 20 3440 6800
About North River Resources: North River Resources (AIM ticker:
NRR) is a multi-asset mining exploration and development company
with projects located in Namibia and Mozambique. The Company's
primary focus is bringing its flagship Namib project into
production. The Namib project is the restart of a high grade
zinc-lead underground mine located in Namibia.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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