Equatorial Palm Oil plc Amendment to Concession Agreements (7534Z)
March 17 2017 - 2:00AM
UK Regulatory
TIDMPAL
RNS Number : 7534Z
Equatorial Palm Oil plc
17 March 2017
17 March 2017
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
Amendment to Concession Agreements
Extension of Tax and Duty Free Periods
Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil
development and production company with operations in Liberia, West
Africa today updates the market that its tax and duty free
allowance has been extended for a further five years under
concession agreements granted to the Company's Liberian
subsidiaries in 2008 for the development of two existing oil palm
estates at Palm Bay and Butaw (the "Concession Agreements.").
The Concession Agreements became effective on 6 August 2008 and
were for a term of 50 years. In accordance with the Concession
Agreements, the Company's Liberian subsidiaries were granted
certain tax and duty free status for the first 7 years of its
operations ("Rehabilitation Term").
As a consequence of factors outside of the Company's control,
which resulted in slower than planned development of the concession
areas, the Government of Liberia ("GOL") has approved an amendment
to the Concession Agreements for both of the Company's Liberian
subsidiaries being Libinc Oil Palm Inc. and Liberia Forest Products
Inc.
The amendments, which were ratified by the Liberian legislature
and authorised by the President of Liberia, extend the
Rehabilitation Term for a further 5 years from 27 February 2017 for
Libinc Oil Palm Inc and 14 March 2017 for Liberia Forest Products
Inc, which are the dates on which the amendments to the Concession
Agreements became effective by being published into handbills. The
extension of the Rehabilitation Term by 5 years has resulted in the
Concession Agreements also being extended by a similar period and
both shall now end on 6 August 2063 being the fifty-fifth
anniversary of the effective date of the Concession Agreements.
Since 2008, the Company has spent over US$100m in developing its
oil palm operations in Liberia. With crude palm oil production
scheduled to commence during the second half of 2018 from our new
60 metric tonne per hour palm oil mill currently being built on
Palm Bay estate, this timely extension to the Rehabilitation Term
reinforces the GOL's commitment to foreign investors.
Geoffrey Brown, Executive Director of EPO, commented:
"We are extremely pleased that the GOL has approved these
amendments to the Concession Agreements as it will have a huge
positive impact on our operations and also benefit the communities
amongst whom we operate.
The sustainable palm oil business is a long-term commitment to
the GOL and its people and the Company continues with its
unwavering support to reinvigorate the agricultural industry
through partnering with all stakeholders."
For further information, please visit www.epoil.co.uk or
contact:
Equatorial Palm Oil plc +44 (0) 20 7016
Geoffrey Brown (Executive Director) 9885
Strand Hanson Limited (Nominated
Adviser) +44 (0) 20 7409
James Harris / James Bellman 3494
Mirabaud Securities LLP (Broker) +44 (0) 20 7484
Peter Krens 3510
Notes to editors:
Equatorial Palm Oil plc is an AIM listed crude palm oil
developer and producer with palm oil estates in Liberia, West
Africa. The Company was founded in 2005 and is focused on becoming
a global, sustainable producer of high quality palm oil to regional
and international markets.
With a significant land position in Liberia through its
operating subsidiary LPD, the Company is geographically well
positioned to serve the international and regional markets and is
committed to making a positive impact on the communities in which
it operates through investment in local schools, health clinics,
housing and infrastructure.
The Company's largest shareholder and 50:50 joint venture
partner in LPD is Kuala Lumpur Kepong Berhad ("KLK"). KLK is one of
the largest palm oil producers in the world and the Company will
greatly benefit from their many years of expertise in oil palm
development.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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