News blog
Pan Pacific Aggregates
- BY: Andrew Hore |
- POSTED: 03/05/2008 |
Pan Pacific Aggregates is buying producing assets near to its existing mineral claims.
It is acquiring a rock and gravel quarry in Abbotsford, British Colombia and an operator of quarrying equipment. The quarry made an operating profit of C$606,000 on revenues of $2.28m in the 10 months to March 2008. It comes with a mortgage of C$1.6m. The equipment business made a small profit in the year to March 2008.
At the same time as the acquisition every 10 existing shares will be consolidated into one new share. The payment for the assets is 8m shares after consolidation and C$400,000. A fundraising is proposed by Pan Pacific.
Pan Pacific joined Aim on 16 December 2005. It raised £2.54m at 80p (800p post-consolidation) a share, which valued the company at £50.85m. That valuation looks optimistic now. At 2.25p a share, the company is currently valued at £2.4m.
Pan Pacific was established to consolidate mineral claims on the Sechelt Peninsula in British Columbia, Canada. There were industrial minerals and construction aggregates on the site. The deposit had approximately 750m tonnes of potentially extractable resource. Following the Aim admission further areas of land in the area were acquired, including space for a ship loading facility. There were delays in permitting applications because of the existence of caves of potential archaeological importance. In February, RAB Special Situations converted loan notes into shares taking its stake to 52.15%. That will be diluted by this deal.
There will be a shareholder meeting on 27 May.
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