18th Aug 2014 08:48
LONDON (Alliance News) - Fox Marble Holdings PLC Monday said it has entered into a sub-lease arrangement with New World Holdings (Malta) Ltd in relation to the Omega Sivic marble quarry in Prilep, Macedonia.
The new quarry site is adjacent to Fox Marble's existing operations in Prilep.
Kosovo-focused Fox Marble said the consideration for the sub-lease is GBP1 million plus a 40% gross revenue royalty. The sub-lease has an initial term of 20 years, extendible by the company for a further 20 years.
The sub-lease grants Fox Marble the exclusive right to quarry, process, remove and sell marble from the quarry. The company will pay for and provide all the equipment and staff required to operate this quarry.
Fox Marble estimates that the quarry will require approximately GBP600,000 of capital expenditure investment to reach commercial production, which is expected within six months.
Sivec marble, is amongst the most desirable marble in the market, with prices beginning from EUR500 per metric tonne for the lesser grades unprocessed, and is the highest value marble in the company's range.
The stock was quoted up 2.0% at 16.71 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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