4th Jul 2016 07:47
LONDON (Alliance News) - Rose Petroleum PLC Monday said its subsidiary in Cuba has been selected to exclusively proceed into the next stage of negotiations as the firm looks to secure opportunities to manufacture items for the construction industry in the country.
Rose shares soared by 19% on Monday morning to 0.160 pence per share.
The company, which is involved in both oil and gas alongside mining, said subsidiary Rose Gypsum Ltd has been participating in a "competitive and exhaustive tender process" to manufacture calcined gypsum, interior panels and ceiling panels and other gypsum based materials for the construction industry in Cuba.
Calcined gypsum is an important building material and is used for a variety of reasons such as plastering.
On Monday, the company said the subsidiary has been exclusively chosen to move to the next stage of the process, which will involve "detailed negotiations".
"Rose Gypsum has been selected on the grounds of its technical and professional expertise, following its negotiations with both Empresa Materiales De Construccion Ciego de Avila, the local state company responsible for the project and the Cuban Ministry of Construction", said the company.
"The commencement of negotiations is scheduled to take place in Cuba in July. Rose Gypsum is negotiating to become the joint operator, distributor and manufacturer on the project," Rose added.
Negotiations will be exclusively between Rose Gypsum and the local state company. Importantly, there is no guarantee that a deal will be reached, the company said.
"If Rose Gypsum is successful in completing the deal, it would become the sole manufacturer of gypsum related products operating in Cuba. Rose Gypsum will be well positioned to meet the domestic demand in these products, driven by the significant growth in tourism and construction," said Rose.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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