MARKET DEVELOPMENT
DekelOil To Develop Brownfield Land in Ghana
DekelOil To Develop Brownfield Land in Ghana
16/10/2015 (StockMarketWire.com) - DekelOil Public Limited, operator and 51% owner of the vertically integrated Ayenouan palm oil project in Côte d'Ivoire, has entered into a contract to develop 10,000 hectares of brownfield land in West Ghana.
The contract relates to land near the city of Bibiani in the western region of Ghana.
The contract has been undertaken with local land owners and a registered lease will be granted to DekelOil subject to due diligence including environmental and social feasibility studies and land surveys.
Due diligence is anticipated to take up to 12 months - DekelOil has the option of walking away from the contract with no penalties should any material issues arise.
If formalised, the Ghana Bibiani Project will be developed as DekelOil's third vertically integrated operation adding to the Company's existing portfolio which comprises of the producing Ayenouan Project and the 24,000 hectare Guitry project area, both in Cote d'Ivoire.
Executive director Lincoln Moore said, "This agreement is in line with our broader vision to become a major CPO producer in West Africa. Subject to positive findings from our due diligence, this land will be developed as our third vertically integrated West African project and considering the strong local market for CPO, our management team's strong experience of working in Ghana, and its close proximity to our existing sites, we believe this project will add a complementary and valuable revenue stream to our business. In line with our current activities to operate in partnership with local land owners and smallholders, the community will benefit from our activities in Ghana, with the consideration for the land payable through a share of the profits delivered from sales of FFB to a company-owned Mill to be developed and built in the future."
The contract relates to land near the city of Bibiani in the western region of Ghana.
The contract has been undertaken with local land owners and a registered lease will be granted to DekelOil subject to due diligence including environmental and social feasibility studies and land surveys.
Due diligence is anticipated to take up to 12 months - DekelOil has the option of walking away from the contract with no penalties should any material issues arise.
If formalised, the Ghana Bibiani Project will be developed as DekelOil's third vertically integrated operation adding to the Company's existing portfolio which comprises of the producing Ayenouan Project and the 24,000 hectare Guitry project area, both in Cote d'Ivoire.
Executive director Lincoln Moore said, "This agreement is in line with our broader vision to become a major CPO producer in West Africa. Subject to positive findings from our due diligence, this land will be developed as our third vertically integrated West African project and considering the strong local market for CPO, our management team's strong experience of working in Ghana, and its close proximity to our existing sites, we believe this project will add a complementary and valuable revenue stream to our business. In line with our current activities to operate in partnership with local land owners and smallholders, the community will benefit from our activities in Ghana, with the consideration for the land payable through a share of the profits delivered from sales of FFB to a company-owned Mill to be developed and built in the future."