22 July 2011, Vancouver, British Columbia-Canaf Group Inc. (TSXV: CAF) ("Canaf" or the "Company") is pleased to announce reduced interest rates on debentures and unsecured loan, and the successful commissioning of a new screening and crushing plant at its wholly owned South African operation, Quantum Screening and Crushing (Pty) Ltd. ("Quantum").
Reduced interest on debentures and unsecured loan
The Company confirms that as of 01 May 2011, the interest rate attached to two floating debentures amounting to $150,000 has been reduced from 12% to 8%, compounded annually, and has been extended until 01 May 2013. The debenture is now convertible to stock at a rate of $0.25/share.
Finally, the Company can confirm that the interest rate attached to the unsecured loan, provided by David R Way, Chairman of the Company, has been reduced from 7% per annum to 6% per annum, effective 01 November 2010, which will be reflected in the next quarter's financials. As of 30 April 2011, the total balance of the unsecured loan was $562,693, including accrued interest.
New screening and crushing plant
As part of the Company's development strategy, Quantum has purchased the new screening and crushing plant so to significantly improve its range of sizes of products in order to further increase orders and widen its customer base.
The new plant, purchased from Pilot Crushtec (SA) (Pty) Ltd. in Johannesburg, is capable of screening up 200 tonnes per hour and crushing up to 40 tonnes per hour of anthracite. Due to its modular nature, it is easy to expand the plant, and increase capacity in the future. The cost of the new plant is ZAR1,255,090 (approx. US$190,000), which is being financed by Standard Bank, South Africa. Installation and infrastructure costs including electrical installations, amounting to approximately $40,000, have been financed by Quantum alone.
During the last two quarters reported, a steady increase in orders has been received from Arcelor Mittal at its steel plants at Vanderbijl Park and Newcastle.
For the period 01 November 2010 to 31 January 2011 Quantum generated revenue of $2,757,837.
For the period 01 February 2011 to 30 April 2011 Quantum generated revenue of $3,711,929.
For the current quarter, 01 May 2011 to 31 July 2011, the Company expects a further increase in revenue due to consistent orders for the current quarter.
The Company is now currently looking at options to further increase orders from the commissioning of the screening and crushing plant so to reach a wider customer base and is also looking at increasing it production capacity by re-commissioning one of its kilns on site.
Canaf Group Inc. is a junior mining group based in Vancouver, Canada, and with subsidiary offices in the United Kingdom. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., a carbon producing company based in South Africa.
Quantum Screening and Crushing (Pty) Ltd's is one of South Africa's largest producers of calcined anthracite, a product used as a replacement to coke in the manufacturing process of steel and manganese. The company's two largest clients are Mittal Steel and Samancor, world leaders in steel and manganese production respectively. Quantum has an operation in Newcastle, KwaZulu Natal, where its two kilns operate around the clock devolatising the raw material, anthracite. The majority of Quantum's feedstock anthracite is supplied by Springlake Colliery, which has reserves in excess of 25 years and is located in the nearby town of Dundee.
Certain information regarding Canaf contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Canaf believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. . Canaf undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.These risks include operational, marketing, political, currency and geological risks and the ability of Canaf to raise or obtain funds for its operations. Canaf's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
For further information on Canaf Group, visit www.canafgroup.com or see contacts below.
Canaf Group Inc.
Phone: +44 1273 492100
Fax: +44 1273 492175
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