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Fox Marble adds more quarries, seeks £4.75mln at premium

Published: 03:12 17 Jul 2014 EDT

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Fox Marble (LON:FOX) is to raise £4.75mln at a premium to the current market price to buy rights over two more quarries in the Balkans.

The marble supplier already has rights over seven quarries in the region, but is now negotiating a long term production and processing lease at the Omega quarry at Priep, Macedonia, and exploration rights over a site close to its Malesheva quarry in Kosovo.

The Kosovo quarry contains Cremo Olta and Bianco Illirico marble, while Omega’s quarry contains mainly Sivec marble. 

Fox already has an interest in a quarry producing Sivec marble at Priep, but this time it wants to acquire the operating rights and retain 60% of revenues.

The estimated total consideration including capital expenditure for the quarry is £1 mln to £2mln with commercial quantities expected to be produced within six months of its acquisition. 

Fox added that demand for Bianco Illirico marble is strong, particularly in North American markets and it believes that this marble could become the largest volume seller of its mid-priced marble range. 

The placing at 18p will raise a net £4.39mln, of which £2.1mln will be spent on the new sites with £2.65mln earmarked for sales, marketing and working capital. 

At the end of June, Fox Marble had 591 blocks of marble in stock ranging in weight from 5 to 23 metric tonnes totalling 6,448 metric tonnes.

First significant sales of approximately €215,000 will to be recognised in the second half of the year. Before the placing, the company had €2.6 mln at 22 June.

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