REG - Capital Limited - New Contract Award - Geita Gold Mine, Tanzania

CapitalAnnouncement

22/12/2021 07:00

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RNS Number : 4680W  Capital Limited  22 December 2021

 For Immediate Release  22 December 2021

 

 

Capital Limited

("Capital", the "Group" or the "Company")

 

CMS (Tanzania) Limited New Contract Award - Geita Gold Mine, Tanzania

Capital (LSE: CAPD), a leading mining services company focused on the African
markets, is pleased to announce its Tanzanian subsidiary company, CMS
(Tanzania) Limited, has been successfully awarded a surface production
drilling contract with AngloGold Ashanti with its GEITA GOLD MINE LIMITED in
Tanzania.

CMS (Tanzania) Limited is an 80:20 joint venture with local company CK
Washirika Limited. The joint venture, which is fully compliant with the local
content law in Tanzania, demonstrates Capital's commitment to building
capabilities and supporting local communities.

The three-year contract will utilise five rigs from the existing fleet,
together with the acquisition of one new rig during 2022, to continue
provision of blast hole drilling services at the Geita mine, bringing the
total number of rigs operating on site to 25.

The new contract supplements the two existing three-year contracts, a surface
drilling contract for exploration and grade control services and an
underground contract for grade control and exploration drilling services, both
of which were renewed in H1 2021 and are also fully compliant to local content
laws in Tanzania.

This contract further cements Capital's long-term relationship with AngloGold
Ashanti, which started with the provision of grade control drilling services
at the Geita site in 2006 and will now extend to 2025.

The production drilling contract started in December 2021 and is anticipated
to generate revenues of $33 million over the contract term.

Commenting on the new contract awards, Jamie Boyton, Executive Chairman, said:

"We are pleased to maintain our long-standing relationship with AngloGold
Ashanti at their Geita Gold Mine with the award of this new long-term
contract. The contract continues Capital's delivery of production drilling to
the site and reflects the team's excellent operational and safety performance
in providing drilling services to the Geita mine for more than 15 years.
Importantly, the contract award also supports our strategy of building the
sustainability of the business by maintaining the portfolio of long-term
mine-site based clients."

ENDS -

For further information, please visit Capital's website www.capdrill.com or
contact:

Capital Limited
 
+230 464 3250

Jamie Boyton, Executive Chairman
            investor@capdrill.com

Giles Everist, Chief Financial Officer

Conor Rowley, Investor Relations & Corporate Development Manager

Berenberg
 
+44 20 3207 7800

Matthew Armitt

Jennifer Wyllie

Detlir Elezi

Tamesis Partners LLP
 
+44 20 3882 2868

Charlie Bendon

Richard Greenfield

Stifel Nicolaus Europe
Limited
+44 20 7710 7600

Ashton Clanfield

Callum Stewart

Rory Blundell

Buchanan
 
+44 20 7466 5000

Bobby
Morse
                   capital@buchanan.uk.com

James Husband

 

About Capital Limited

Capital Limited is a leading mining services company providing a complete
range of drilling, mining, maintenance and geochemical laboratory solutions to
customers within the global minerals industry, focusing on the African
markets. The Company's services include: exploration, delineation and
production drilling; load and haul services; mining equipment hire and
maintenance; and geochemical analysis. The Group's corporate headquarters are
in Mauritius and it has established operations in Burkina Faso, Cameroon,
Côte d'Ivoire, Egypt, Guinea, Kenya, Mali, Mauritania, Nigeria, Saudi Arabia
and Tanzania.

 

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