TIDMASA
RNS Number : 2227L
ASA Resource Group PLC
29 September 2016
29 September 2016
Asa Resource Group plc
("Asa Resource", "the Group" or "the Company")
Trading update, Company Secretary & Director dealing -
replacement
The following announcement replaces the Trading update, Co Sec
& Director dealing announcement made earlier today at 07:00 BST
under RNS number 1407L.
The gold grade at Zani-Kodo was previously incorrectly listed as
3% and has now been corrected to 3g/t.
All other details of the announcement remain unchanged.
The Directors of ASA RESOURCE GROUP plc are pleased to give a
short trading and corporate update.
GROUP REORGANISATION
The process of rationalising the Group's subsidiaries by
resource class is taking shape. For example, bringing Freda
Rebecca, Zani Kodo and its other gold interests together to form
ASA Gold as a separate entity within the Group will unlock
significant value. Not only will this corporate reorganization
benefit ASA shareholders, but it will also facilitate investment in
a single mineral class whilst retaining the overall multi-commodity
group listing for those who wish to invest in all of the Group's
activities. As these plans start to crystallise we will update
shareholders on their full impact and their benefit to
shareholders.
ASA GOLD
Freda Rebecca is increasing its gold output consistent with the
targets set out in our last update. The replacement LHD is now on
site and with the commissioning of two new mills we look forward to
more consistent output results and increasing revenues as we move
through the remaining quarters of this financial year (FY
2017).
The Group has a proven resource of 2.97Moz in Zani-Kodo with
grades of over 3g/t (almost 50% higher than at Freda Rebecca). It
is located in the north-east of DRC where major gold producers
already have world-class mining operations; such as Randgold's
Kibali project. The Group has invested almost $3m per annum on
either exploring or maintaining its licences. Rather than add to
this annual expense and with a gold price of over $1,300, it makes
much more economic sense to start a mining operation as soon as
possible. The Group has commissioned a pre-feasibility study that
will detail which mine plan to pursue. These vary from a
gravity-flotation operation with low capex and operating costs to a
full scale CIL processing plant, similar to that at Freda Rebecca.
The Group has deployed a senior engineering team in DRC to direct
and assess each option and to engage with government to expedite
our plans. If the gold price remains at current levels, we see the
potential to have a CIL plant operation producing 35,000 oz in the
first phase within 12-24 months of securing the appropriate
finance. The strategy would be to use the proceeds of the mine
operation to grow our resource significantly. It's worth noting
that the exploration undertaken to date only covers a small
proportion of the 1,605 square kilometres of its exploration
area.
ASA NICKEL
As was reported last week, Bindura Nickel Corporation continues
its steady performance with AISC (C3) below $5,000/t for
nickel-in-concentrate, ahead of earlier indications. The re-start
of the smelter is progressing and is scheduled to come on stream in
Q4 of our financial year ending 31(st) March 2017. The model for
the re-start of the smelter is not dependent on third party toll
feed and with nickel staying above $10,000/t, the financial
dynamics are inline with BNC's overall mine expectations. Clearly
an agreement with either a nickel or PGM producer will only enhance
the economics of the smelter. Discussions with interested parties
are ongoing and as the nickel price improves, it is expected that
more nickel producers will return to the market; many are currently
on care and maintenance because of the low nickel price. When the
smelter is fully operational, our payability is expected to improve
from the current 65% to circa 85% of the LME market spot price.
Major works on the re-deepening project have been held back through
cash constraints and manpower limitations. Our main priority is the
smelter and once this is fully integrated, the re-deepening project
will come back on to BNC's radar. The refinery is also being looked
at and a feasibility study is underway and it remains our
medium-term ambition to re-establish BNC as the only fully
integrated nickel producer in Africa.
ASA DIAMONDS
In relation to Klippspringer, the processing of slime tailings
continues and progress is being made towards retreating another dam
of coarse tailings, which are hoped to produce diamonds presently
selling at $100 US per carat as opposed to the current $20 US per
carat for the slime tailings diamonds project. In the meantime,
discussions are ongoing with a number of potential listed diamond
partners to re-start the underground mine.
ASA COPPER
In Katanga where we have a joint venture on copper with one of
the largest copper tube manufacturers in the world, Zhejiang
Hailiang Company Limited, they are meeting their obligations to pay
up all the appropriate exploration licenses. We are awaiting
confirmation of their latest exploration findings and once these
are JORC compliant we will be able to make the appropriate
announcement.
AGRICULTURE
In our ancillary activities, agriculture and meat processing are
showing positive signs and the Board expects that these activities
will contribute towards Group income in its first year of operation
and grow steadily thereafter. While these are not necessarily core
to our main mining business, they're income producing and form part
of our overall community engagement programme.
COMPANY SECRETARY
The Board is pleased to announce the appointment of Ian Barry
Dearing, a practising solicitor and notary public, as Company
Secretary and Group Legal Advisor in succession to Amilha
Young.
DIRECTOR DEALING
The Board announces that Dr Scott Morrison reduced his holding
in the Company on 27th September. Dr Morrison lives in Switzerland
and said the sale was for the purposes of personal tax planning
only. He sold 1,000,000 shares at a price of 2p per share. His
holding in the Company after the sale is 5,900,000 shares.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS
DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY
ASSOCIATED WITH THEM
1. Details of the person discharging managerial
responsibilities/person closely associated
------ -------------------------------------------------------------
a) Name: Scott Morrison
------ --------------------------------- --------------------------
2. Reason for the notification
------ -------------------------------------------------------------
a) Position/status: Senior Independent
Non-Executive
Director
------ --------------------------------- --------------------------
b) Initial notification/amendment: Initial notification
------ --------------------------------- --------------------------
3. Details of the issuer, emission allowance
market participant, auction platform,
auctioneer or auction monitor
------ -------------------------------------------------------------
a) Name: Asa Resource
Group plc
------ --------------------------------- --------------------------
b) LEI: N/A
------ --------------------------------- --------------------------
4. i) Details of the transaction(s): section
to be repeated for (i) each type of instrument;
(ii) each type of transaction; (iii)
each date; and (iv) each place where
transactions have been conducted
------ -------------------------------------------------------------
a) Description of the financial Ordinary shares
instrument, type of instrument: of 1 pence each
Identification code: ISIN Code: GB00B0GN3470
------ --------------------------------- --------------------------
b) Nature of the transaction: Sale of shares
------ --------------------------------- --------------------------
c) Price(s) and volume(s): Prices(s) Volume(s)
---------- ----------
2p 1,000,000
---------- ----------
------ --------------------------------- --------------------------
d) Aggregated information: N/A (Single Transaction)
Aggregated volume:
Price:
------ --------------------------------- --------------------------
e) Date of transaction: 27(th) September
2016
------ --------------------------------- --------------------------
f) Place of transaction AIM Market
------ --------------------------------- --------------------------
For more information please visit http://www.asaukplc.com/ or
contact us below:
London
Niall Henry, non-Executive Director (Investor Relations)
Asa Resource Group plc.
75 Gt. Portland Street, London W1W 7LR
Communications@asaukplc.com
Hong Kong
Yim Kwan, Finance Director
Asa Resource Group plc.
Units 509-510, Level 5, Core E, Cyberport 3, 100 Cyberport Road,
Hong Kong
Communications@asaukplc.com
Nominated Adviser and Joint Broker
SP Angel Corporate Finance LLP
Prince Frederick House, 35-39 Maddox Street, London W1S 2PP
John Mackay, Jeff Keating, Caroline Rowe
Tel: +44 (0) 20 3470 0470
This information is provided by RNS
The company news service from the London Stock Exchange
END
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