News blog

Strategic Natural Resources

• BY: Andrew Hore |
• POSTED: 29/11/2013 |

Strategic Natural Resources (SNR) says that its 74%-owned subsidiary Elitheni Coal has received a liquidation notice from creditors.

Elitheni Coal owns the Elitheni coal mine. Elitheni says that the monetary claims exceed what they should be and it will settle the legitimate claims. The notice is due to be heard on 10 December.

Black economic empowerment partner Rapidtrade has lent £915,000 to Elitheni. This is repayable on 12 December and could be converted into a 10% shareholding, taking its stake to 30%.

Elitheni has temporarily ceased mining until longer-term finance is secured. The method of mining will change if or when it restarts. New management is being sought.

A new black economic empowerment partner with mining experience could provide additional finance. There are talks with other investors concerning investment and the government about grants.

At 4.25p a share, SNR is valued at £7.27m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFNovember2013_50.pdf