Dwyka Signs Services Agreement in Connection with Philippines Daguma and Bonanza Coal Projects
Further to Dwyka’s announcement on 7 May 2008 that it had entered into an option giving it the ability to acquire an interest in the Daguma and Bonanza coal projects (collectively, the “Project”), the Company is pleased to announce that it has now concluded a services agreement with Tomori Enterprises Limited (“Tomori”) to provide ongoing liaison and facilitation services for the life of the Project (“Services Agreement”).
The Services Agreement will only come into effect if Dwyka decides to proceed to acquire an initial interest of 30% in the Project (which is subject to the approval of the Company’s shareholders) and will remain in force for the life of the Project unless terminated earlier by the Company.
Tomori, a company connected to the MAA Group of companies, has agreed to assist Dwyka with a range of Project-related tasks and logistics. The Services Agreement will allow Dwyka to benefit from the expertise of Tomori which includes identification of and negotiation with international parties for off-take agreements in relation to the coal planned to be produced by the Project, assistance with the establishment of infrastructure requirements, liaison with key Project stakeholders and service providers (in particular those unfamiliar with doing business in the Philippines) and other persons having an interest in or being affected by the Project. It is envisaged that Tomori will also assist with identifying local Philippine companies that can appropriately assist the Project’s operating companies with submissions and filings to the relevant government departments and agencies in the Philippines in a manner consistent with all applicable rules and regulations.
As full consideration under the Services Agreement, Dwyka is to issue ordinary shares to Tomori to the value of US$6 million (at a deemed value of GBP0.26 per ordinary share) on the date at which Dwyka elects to exercise its option to acquire an initial interest of 30% in the Project.
Speaking today in relation to the signing of the Services Agreement, Melissa Sturgess, Chief Executive Officer of the Company said:
”This agreement will give us access to the expertise of a proven investor group in the resources industry with a wealth of experience of establishing brown field projects and the procuring of off-take agreements, and with access to in-country expertise which will greatly assist in the smooth and efficient implementation of the Project. We are determined to make the Project a success for our shareholders and consider that the prospect of such a success is strengthened through the assistance of Tomori”.
DWY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
