Business
Increase in Diamond Creek Ownership to 100%
Increase in Diamond Creek Ownership to 100%.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5686G\n Keras Resources PLC\n 30 March 2022\n \n \n \n Keras Resources plc\n ('Keras' or 'the Company')\n \n Keras increases ownership of the Diamond Creek Phosphate Mine in Utah, USA to 100%\n \n \n Keras Resources plc (AIM: KRS) is pleased to announce that it now owns 100% of Falcon Isle Resources LLC and Falcon Isle Holdings LLC (collectively 'Falcon Isle'), having acquired the outstanding 49% minority interests of Falcon Isle from the Helda Living Trust ('HLT'). Falcon Isle owns the high-grade Diamond Creek organic phosphate lease and mine, ('Diamond Creek') and the Spanish Fork processing facility ('Processing Facility') in Utah, USA. Keras has now assumed full management of Falcon Isle and production has recommenced operations at the Processing Facility. \n \n \n \n \n \n As previously announced, Keras \n had been looking to resolve the funding shortfall at Falcon Isle and engaged local US legal representatives to enforce its rights of the terms of the transaction agreed in June 2020, under which Keras secured a 51% stake in Falcon Isle effective 29 December 2020. Further to these discussions, agreement has been reached whereby Keras has purchased the outstanding 49% equity interest in Falcon Isle for \n a total\n \n consideration of US$3.2m including loans repaid to the vendor of Falcon Isle of US\n $1,816,527\n . To preserve cashflow for developing the project, this will be paid in four annual instalments of US$800,000 commencing on 1 July 2022 with the final payment on 1 July 2025. Importantly, concluding this agreement has ensured that the Company avoids a lengthy and costly litigation process in the United States and allows Falcon Isle to recommence operations to meet demand in the key spring season. \n \n \n \n \n The losses in the financial year ended 31 December 2021 attributable to the 49% interest in Falcon Isle acquired were US$24,187.\n \n \n \n \n \n The transaction set out above constitutes a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies as a beneficiary of the HLT is also a director of Falcon Isle. The directors of Keras, all of whom are independent for the purposes of this transaction, having consulted with the Company's Nominated Adviser, consider that the terms of the transaction are f...