Business
Diamond Creek Update
Diamond Creek Update.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5399R\n Keras Resources PLC\n 05 November 2021\n \n \n \n 5th November 2021\n \n Keras Resources plc ('Keras' or the 'Company')\n \n Diamond Creek Update\n \n \n \n \n Keras Resources plc (AIM: KRS) announces an update at the high-grade Diamond Creek organic phosphate mine, (Diamond Creek) in Utah, USA, owned by the Company's 51% subsidiary, Falcon Isle Holdings LLC ('Falcon Isle').\n \n \n \n \n From an operational perspective, the 2021 mining campaign has now been completed with 8,520 tons mined and delivered to the laydown area at Diamond Creek. This total was under the previously announced forecast annual tonnage of 10,000 tons, as there was previous inventory available from the 2020 marketing campaign, which preserved both cash flow and storage requirements. Sales since commencement of the project in June 2020 total 3,061 tons. \n \n \n \n \n \n From a financial perspective, the delay in commissioning the Spanish Fork plant and the increased costs associated with those delays, combined with a lack of additional sales to cover those costs and the need to complete the 2021 mining campaign before the winter, has resulted in a need for additional capital to fund Falcon Isle's operations. \n \n \n \n \n \n Since investing in Falcon Isle in July 2020, Keras has complied with all its obligations, as per the transaction announced on 30 July 2020 (the \"Transaction\"). To date Keras has provided approximately US$625,000 in additional working capital to Falcon Isle, which has been funded from Keras's cash reserves. For the past 9 months, Keras has been in discussions with our partner about the capital shortfall, has offered non-dilutionary funding solutions and Keras has offered to acquire additional equity in Falcon Isle. To date we have not found a resolution and this is having a negative impact on the business itself and on Falcon Isle's relationships with key contractors.\n \n \n \n \n \n Under the circumstances, operations at the Spanish Fork processing plant have been temporarily halted until this funding issue is resolved. Having exhausted all efforts to negotiate an amicable solution, Keras has now engaged local US legal representatives to enforce its rights under the terms of the Transaction.&...