News blog

African Consolidated Resources

• BY: Andrew Hore |
• POSTED: 11/12/2014 |

African Consolidated Resources is raising £1.59m at 0.5p a share and it plans to make a acquisition in Romania.

The par value of the shares has to be reduced in order to issue shares at 0.5p. the share price has slumped 0.12p to 0.57p.

The company has also secured a $1m loan from Grayfox Investments. The cash will finance further assessment of the opportunities in the portfolio of the Romanian State mining company Remin, which have been assessed over the past two years.

The most likely purchase is a 68% stake in the Baita Bihor mine via the purchase of a 68% shareholding in Mineral Mining, which is currently the subject of insolvency proceedings but they should be concluded shortly.

The Baita Bihor mine is thought to contain 1,800,000 tonnes of polymetallic ore (gold, silver, copper, zinc, lead, tungsten and molybdenum) at 6% copper equivalent or 10g/tonne gold equivalent. Production was halted in 2013.

African Consolidated management and employees own 85% of Mineral Mining. In order to buy the 68% stake in Mineral Mining the company will need to pay $3.6m to pay off debt, improve infrastructure and pay other costs. Management believes that within six months the mine could be producing 10,000 tonnes per month and operational costs are estimated at $81/tonne.

A general meeting will be held on 30 December. The company’s name is being changed to Vast Resources.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2014_63.pdf