4th Dec 2008 16:33
PAN PACIFIC AGGREGATES PLC
("PPA" OR THE "COMPANY")
PROJECT UPDATE
AND
SENIOR APPOINTMENT
Pan Pacific Aggregates plc, an AIM listed quarrying company operating in British Columbia, Canada, advises that progress has been made in resolving the issues regarding Pumptown Quarry.
On 27 October 2008, the Company issued an announcement in relation to a writ from HSBC for a total potential liability of up to CAD$13.255m in which it was stated that the Directors believed the liability would be significantly less than this amount.
The Directors are pleased to announce that following discussions with HSBC and its lawyers the quantum of the writ has been reduced from CAD$13.255m to CAD$1.652m. The Directors firmly believe that this amount is still excessive and that the true amount due to HSBC by PPA is significantly less. The Directors are having ongoing discussions with HSBC to reach a final settlement figure. A further announcement will be made in due course.
The Company continues to make progress on operational matters both at Pumptown Quarry and Caren Ridge and it is anticipated that both sites should be operational during the first quarter of 2009. At Pumptown, initial engineering plans to allow for improved access into the quarry have been completed and the Company is now in discussions with its partners and the City of Abbotsford to agree the final specification of works.
Caren Ridge on the Sechelt is awaiting the final approval of the working plans by the Provincial Government. Since the fundraising in July 2008 and the appointment of new management at the end of September 2008, the Company has made good progress in relation to the operations of the Pumptown Quarry. Once the Company has improved access to the quarry, it is the Board's intention to identify potential joint venture partners to build throughput whilst minimising capital expenditure. To this end, possible joint venture partners have been identified and negotiations are underway. A further announcement will be made once terms have been agreed.
SENIOR APPOINTMENT
The Directors are also pleased to announce the appointment of Thomas Masney to the senior management team as Chief Financial Officer (designate). This is not a board appointment.
Mr Masney will be responsible for the financial strategy of the Group, reporting to the Managing Director and the Board on all financial matters, also being responsible for all day to day running of the financial management within the Group. He will be based in Vancouver.
Mr Masney is a chartered accountant who is a specialist in company turnarounds and restructuring situations. He has held a number of posts as either Financial Director or CFO in Canada, London and Hong Kong, following his early careers with Ernst Young and PricewaterhouseCoopers.
Commenting on the appointment, William Voaden, Managing Director, said:
"I am immensely pleased that Thomas has agreed to join us. He further enhances the team and brings a wealth of operational experience to the Group. I am looking forward to developing the business with him and our other Directors."
Enquiries:
|
Pan Pacific Aggregates plc
|
+44 (0) 20 7096 9580
|
|
William Voaden
|
|
|
Dowgate Capital Advisers Ltd
|
+44 (0) 20 7492 4777
|
|
James Caithie / Aaron Smyth
|
|
|
VSA Capital Limited
|
+44 (0) 20 7096 9589
|
|
Paul Backhouse
|
|
|
Lothbury Financial Limited
|
+44 (0) 20 7011 9411
|
|
Michael Padley / Louise Davis
|
|
Related Shares:
Adm Energy