Berkley Mineral Resources PLC have a strategy of processing tailings at former mines as a mineral processing company. Their main focus at current is the extraction on zinc and lead from tailings Dumps in the Kabwe mine in Zambia.
LJC You are a well researched shareholder, what is your opinion of the resolutions 7,10 & 11. Lee have you worked any numbers out on how much money has been taken out of the BMR pot?
The Directors strongly recommend that shareholders vote in favour of all the resolutions which include: a change of name of the Company to BMR Mining PLC to reflect a separation from the past; a share re-organisation to reduce the par value of the shares in order that any new equity funds can be raised by the Company in due course as the market price on the commencement of trading when the suspension is lifted is likely to be below the par value; and a limited share consolidation to restore the likely market price to a level above one pence per share. Is it part of a Chairman's remit to forecast a drop in value of the companies shares to the market. Should the market not decide the valuation without guidance?
Not been about here much
Now the report is out, when can we expect to start trading again? With the sells flooding in of course!
I have seen this done before in order to deplete the powers of existing holders and improve the control of a more agreeable party. This has not been proposed without a degree of pre meditation.
I concurr with your post and the precise use of the word decimated, that is exactly the proposal. A share consolidation is not a pretty option but one we could bear, the removal of the nominal value is the delivery of BMR shareholder austerity. All Greek to me!
I am more concerned about the danger of NOT voting through those resolutions. Ok, shareholder value will be diminished (hopefully just in the short term but more value created longer term) but at least there will be some remnants of value. Without them, we may not see any value at all. IMO, we should wait and see what arguments AB comes up with for these resolutions before we wet our pants too much.
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