TIDMSBLM
RNS Number : 8399J
Sable Mining Africa Limited
14 September 2016
Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector:
Natural Resources
14 September 2016
Sable Mining Africa Limited ('Sable Mining' or 'the
Company')
Result of AGM, Proposed Cancellation of trading on AIM, Notice
of EGM, Directorate Change and Resignation of Nominated Adviser
Sable Mining announces that at the Company's Annual General
Meeting ("AGM") held today all of the resolutions were duly passed,
with the exception of resolution 3 which was withdrawn prior to the
meeting. Sable Mining also announces that it intends to seek
Shareholders' approval to cancel admission of its ordinary Shares
to trading on AIM with effect from 17 October 2016 (the
"Cancellation").
Background to the Cancellation
In recent months, the long term effects of factors including
political instability, public health emergencies, the impact of the
depressed bulk commodities markets, unpredictability of legal
systems together with unsubstantiated and irresponsible allegations
and adverse press speculation have caused significant harm to the
Company's long term prospects as a mineral exploration and
development business.
Against this background, the Board believes it is in the best
interest of the Company and Shareholders to seek the Cancellation
at the earliest opportunity for a variety of key factors,
including:
-- the considerable cost, management time and the legal and
regulatory burden associated with maintaining the Company's
admission to trading on AIM which, in the Directors' opinion, are
during the current phase of the Company's life cycle,
disproportionate to the benefits to the Company; and
-- as a consequence of the depressed market capitalization of
the Company, continuing admission to trading on AIM no longer
sufficiently provides the Company with the benefits typically
associated with public listings including providing access to
capital or enabling the Ordinary Shares to be used to effect
acquisitions; and
-- the bid-offer spread of the Company's share price is prohibitive in providing:
- a real introduction point for new investors; and
- a true and stable price.
Following Cancellation the Board intends to realise maximum
value from the Company's existing asset base. The Company has a
strong cash position and the potential to realise further value
from its existing asset base, which will enable the Board to invest
the Company's resources into a revenue generating project/asset
portfolio, with a geographic focus on southern and central Africa.
The Board will consider a wide range of opportunities, but given
the prevailing market conditions it is not anticipated that the
Company will look to invest in or acquire any interest in mineral
exploration, extraction or development businesses or assets;
instead, at this stage the world economic cycle the Board believes
that a strong focus on short-term revenue generation investments
will offer better value to shareholders than long-term, capital
intensive projects.
Following the Cancellation, the Company intends, subject to
being able to comply with applicable law, to consider putting in
place a Matched Bargain Facility to assist Shareholders to trade in
the Ordinary Shares. The Company also will endeavour to continue to
provide certain facilities and services to Shareholders that they
currently enjoy as shareholders of an AIM company. In this regard,
following the Cancellation, the Company will:
-- continue to communicate information about the Company
(including annual accounts) to its Shareholders, as required by
law, and the Company will continue to hold annual general meetings;
and
-- continue to maintain a website (details of which will be
confirmed in due course) and to post updates on the website from
time to time (being at least every six months).
Full details of the proposed Cancellation are set out in the
circular to Shareholders which will be sent to Shareholders
imminently and made available on the Company's website (the
"Circular").
Notice of Extraordinary General Meeting ("EGM")
Under the AIM Rules, it is a requirement that the Cancellation
must be approved by not less than 75% of votes cast by Shareholders
at an EGM. Accordingly the Circular which is sent to Shareholders
will contain a notice of EGM. At the EGM the shareholders will be
asked to approve special resolutions to approve the Cancellation
and to change the name of the company to "Consolidated Growth
Holdings Limited" (to reflect the change of focus away from mining
activities). The EGM will be held at 12.00 p.m. on 7 October 2016
at Richmond House, St Julian's Avenue, St Peter Port, Guernsey GY1
1GZ and the notice convening the EGM has been sent to shareholders
and will be available to download from the Company's website.
Directorate Change
In the context of the Cancellation and the changes in the future
strategy of the Company, Jim Cochrane decided not to put himself
forward for re-election at the AGM (and as a result resolution 3
was withdrawn from the AGM) and accordingly has stepped down from
the Board with immediate effect.
Jim Cochrane commented "I joined the board of Sable Mining in
2014 with my primary objective being to participate in the building
of an iron ore mine at the Nimba Project in Guinea. In the current
circumstances, the cost of maintaining a listing is prohibitive and
the realistic timescale for development of the project under
Sable's stewardship has extended considerably. With the company
moving to privatisation and it's mining focus being limited I have
decided that it makes sense for me not to seek re-election to the
board and allow others to take the company forward."
Andrew Groves, CEO of Sable Mining commented "We are extremely
grateful to Jim for the insight and guidance has provided in his
role as Chairman of the company since his appointment in January
2014. We wish Jim the very best for the future and look forward to
working with him again, in due course."
Resignation of Nominated Adviser
Cantor Fitzgerald has resigned as the Company's Nominated
Adviser with immediate effect. Accordingly, pursuant to AIM Rule 1,
the Company's shares will be suspended from trading on AIM with
effect from 12:40 on 14 September 2016.
If the Company fails to appoint a replacement nominated adviser
within one month of the date of Cantor Fitzgerald Europe's
resignation, admission of the Company's shares to reading on AIM
will be cancelled (irrespective of the EGM vote on 7 October 2016).
The Directors believe that it is highly unlikely that a replacement
nominated adviser will be appointed.
** ENDS **
For further information please visit www.sablemining.com or
contact:
Andrew Groves Sable Mining Africa Tel: 020 7408
Ltd 9200
Ben Brewerton FTI Consulting Tel: 020 3727
1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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