REG - Amala Foods PLC - Corporate Update

Amala FoodsAnnouncement

17/02/2022 10:00

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RNS Number : 9843B  Amala Foods PLC  17 February 2022

 

Amala Foods Plc

("Amala" or the "Company")

 

Corporate Update

 

Amala Foods Plc (LON: DISH), a food technology company is pleased to provide a
Corporate Update with regards to ongoing progress and development of the
Company's plant-based Joint Venture business and in addition the latest update
regarding the approach to potentially pivot into a new business direction.

 

Amala Foods Joint Venture

 

The plant-based foods Joint Venture Company has made further progress since
the beginning of the year.  Amala is now supplying its plant-based burger to
a Manila based restaurant owned by a well-known Filipino chef, Robby Goco.
The Company is also preparing to supply another local pizza chain with
plant-based pepperoni. Encouragingly, various other local supply agreements
are at varying stages of progress and the Company is confident that there is a
significant market opportunity in the Philippines and the region.

 

Following management's recent trip to the USA last December, the Company
believes that its product line will be able to compete both in terms of
quality and pricing in the North American marketplace.  The Company is
currently undergoing a regulatory process that will, upon successful
completion, allow its products to be distributed in the USA. Should this be
successful, management expects this to be a major market opportunity for the
Company.

 

Potential Rare Earth Elements (REE) new direction

 

The Company recently published its Half Yearly Report and noted in the
Directors Report that it has received several unsolicited approaches about
utilising the Company's public listing for a different purpose that would
value the Company significantly above its current market capitalisation.  To
that extent the Company has now signed a Term Sheet with Terra Rara UK Limited
("Terra").

 

Terra Rara UK has acquired majority interests in several highly attractive
Rare Earth Elements projects in Africa.

 

The projects are summarized below:

 

1) a 70% interest in the Mungo Rare Earth Elements Project in Angola (MREE
Project). The MREE Project is located approximately 150km from London Stock
Exchange Listed, Pensana Limited's (current market capitalisation £174m)
Longonjo Project and is considered a major carbonatite rare earth and niobium
deposit that has been subject to extensive historical exploration by major
global mining company VALE.

 

Diamond drilling has confirmed the presence of very high grade and broad
intersections of rare earth elements mineralisation, with key results
including:

· 12.9m from surface at 6.54% TREO

· 18m from surface at 5.09% TREO

· 5m at 4.8% TREO

· 51.4m at 3.27% TREO including 9.3m at 4.09% TREO and 4.4m at 4.42% TREO

· 72.90m at 3.09% TREO

· 60m at 2.35% TREO

· 142.4m at 2.55% TREO

Additionally, there is significant and high niobium mineralisation from
diamond drilling including 24m at 3.05% Nb2O5.

 

 

2) an 80% interest in the Nankoma and Gulu Road Rare Earth Elements Projects
in Uganda.

 

The Nankoma Project is located 120km east of the Ugandan capital of Kampala
and along strike and adjoins Australian Stock Exchange listed Ionic Rare Earth
Limited's Mukutu Project (current A$191M market capitalisation) which is
considered a world class ionic adsorption clay rare earth deposit with a JORC
compliant resource of 315Mt and a scoping study which confirmed EBITDA of
US$1.28B and post-tax cashflow of US$766M.

 

The Gulu Road Project is located in a new area where Terra Rara UK Limited has
secured a major landholding over an area considered to be highly prospective
for a major ionic adsorption clay rare earth deposits and which offers the
potential to be first mover in this potentially new globally significant
high-grade rare earth elements mineralisation district.

 

The Term Sheet outlines the basis for a potential transaction subject to an
exclusive due diligence period of thirty days and the execution of a Share
Purchase Agreement.  Should the transaction result in a successful conclusion
the Company would acquire the entire share capital of Terra, the terms of
which currently value the Company at a significant premium to the current
share price. Upon successful conclusion there would also be a change of
management.  The transaction, should it progress, will require the future
approval of the FCA.

 

The Company will update the market as appropriate in due course.

 

Aidan Bishop, Director commented: "It gives me great pleasure to confirm that
the Company's existing plant- based operation continues to gain traction both
in product development and in the early stages of the commercialisation stage
and that we are accreting value for potential monetisation options in the
short-term.

 

We also have a potential complete transformation and pivot opportunity subject
to successful due diligence and future regulatory approval by the FCA with
regards to a key and globally strategic arena in the Rare Earths sector. Rare
Earths Elements are becoming a geo-politically important area given China's
present dominant position on these resources. We anticipate those companies
with exposure to these important assets will command ever increasing strategic
premiums in future years and the opportunity to be involved in this area is
very exciting."

 

 

Enquiries:

 

Jonathan Morley-Kirk, Non-Executive Chairman

jmk@bluebirdmv.com

 

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