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GC,
I would hope, and to a degree expect, that they will be able to go with deemed s.p. that was intended for the aborted RTO, i.e. 4.625p/share:-
9th Jun 2022 7:40 am RNS Statement re. Suspension
" ... Citius has agreed, subject to further due diligence, to acquire the entire share capital of AUC for total consideration of £2,000,000 (two million pounds), to be satisfied in full by the issue of 43,243,333,242 new shares of the Company at an implied price of £0.04625 per share ("Acquisition"). Citius will also undertake to raise further capital to support the future work programme and for general working capital. The details of the work programme will be finalised during the forthcoming due diligence phase. ..."
https://www.lse.co.uk/rns/CRES/statement-re-suspension-wnqgwbqiqbdoda4.html
Rare Earths looks like an attractive option.
Marula Mining (MARU), an Aquis-only-traded stock, has a Rare Earths etc. project in Africa, amongst others:-
https://marulamining.com/Projects.html
And MARU has risen from 2.45p a year ago to 11.25p now (market cap. £18.73M.):-
https://www.aquis.eu/companies/MARU
Thanks Hedge! Good news, Q1 should be interesting. I wonder what the expected SP is with the new path upon listing.
1st Dec 2023 9:01 am RNS Lodgement of Prospectus
The Company is pleased to announce that it has lodged a Prospectus for the proposed transaction with Harena Resources Pty Ltd ("Harena"), the 75% owner of the Ampasindava Rare Earths Project in Madagascar ("Proposed Transaction"), to the FCA for the purposes of granting eligibility for the readmission of the enlarged company to the Official List by the FCA and the London Stock Exchange ("Readmission").
The Proposed Transaction is conditional on a number of conditions including; i) satisfactory due diligence ii) entering into definitive legal agreements iii) raising further funds for the Proposed Transaction; iv) approval by shareholders at a General Meeting to be convened; v) obtaining all necessary approvals (if required) and; vi) granting of eligibility for the readmission of the Company to the Official List by the FCA.
There can be no certainty that the Proposed Transaction will take place and the Company will continue to update shareholders in due course once a firm timeline to Readmission.
Cameron Pearce Commented:
"We have now lodged the prospectus and subject to the eligibility process we are targeting to list the enlarged company in Q1 2024. We look forward to working with the Harena team to finalise the transaction and will keep the shareholders appraised on the definitive timetable."
Cameron Pearce
Tel: +44 (0)1624 681 250
info@citiusresources.co.uk
Tavira Financial Limited - Financial Adviser and Broker
Jonathan Evans
Telephone: +44 (0)20 3192 1733
https://www.lse.co.uk/rns/CRES/lodgement-of-prospectus-4b9spxudbe6xwye.html
10th Nov 2023 10:00 am RNS Half-year Report
... Interim Management Report
Dear shareholder,
I am pleased to present the interim report and accounts for the six-month period to 31 October 2023 for Citius Resources Plc.
The Company was pleased to announce during the period that we have entered into a binding Heads of Terms for the acquisition of 100% of the issued shares in Harena Resources Pty Ltd ("Harena") the 75% owner of the Ampasindava Rare Earths Project in Madagascar (the, "Acquisition"). Harena is an Australian domiciled company preparing to develop the 75% owned Ampasindava Rare Earths Project, which will include the mining and processing of Ionic Clay material to extract Rare Earth elements to produce Mixed Rare Earth Carbonate or Mixed Rare Earth Concentrate.
Harena is what can be described as Reverse Take Over ("RTO") advanced stages therefore the Company is well positioned to complete the Acquisition in this next reporting period which would constitute a RTO under the Listing Rules and accordingly, the company would apply for re-admission of its shares to the Official List and Main Market of the London Stock Exchange.
I would like to thank the board and our advisors for their dedication and professionalism in what can only be described as challenging market conditions and we look forward to applying for re-admission and moving the exciting Ampasindava Rare Earths project forward.
Cameron Pearce Chief Executive Officer ...
6. Impairment of the loan
On 9 June 2022 the Company announced that it has entered into a binding Heads of Terms with regard to the possible acquisition of 100% of the share capital of AUC Mining (U) Limited ("AUC"). As part of the Heads of Terms, the Company loaned AUC £249,341. On 26 October 2023, the Company agreed to terminate the agreement with AUC for the acquisition of the Kamalenge project, and therefore, the loan was impaired to Nil. ...
https://www.lse.co.uk/rns/CRES/half-year-report-kag2ohpt5266ogb.html
"AMPASINDAVA RARE EARTHS PROJECT
... Mineral Resource
Harena Resources, through a subsidiary Malagasy Company, Reenova Rare Earths Malagasy, holds the exploration licences grant PR 6698 in the province of Antsiranana, Madagascar. SGS Canada Inc. – Geostat Office (hereafter “SGS Geostat”) completed a resource estimate technical report for the PR 6698 licenses (“The Project”).
The AMPASINDAVA property was first recognized for hosting mineralized dykes hosting high grade Rare Earth Elements (REE) in fresh rock. REE hosted within the regolith (or soil profile) was recognized in 2012; and it has become clear that this “ionic clay” style of mineralization has the most significant economic potential. The ionic clays are the most important mineralization type due to the relatively simple process required to put the REE into solution and the fact that neither Thorium nor Uranium is concentrated through this process; this is in stark contrast to most REE deposits being developed or promoted in the western world.
More than 10 years of data has been collected by excavating shafts by hand and sampled along the depth. A total of 4474 test pits have been completed with an average depth of 5.8m with a maximum depth of 10m. The sampling methodology was validated in the field by SGS Geostat and this has produced reliable data that has been integrated into the following resource estimation. A total of 4412 pits were retained for the resource estimation along with 359 drill holes.
The updated resources estimation was constructed solely from the laterite and saprolite layers within the TRE property. REE grades were interpolated separately by ordinary kriging and blocks were cutoff based on their conceptual amenability to in-situ leaching or tank leaching.
The base case resource with tonnage and grade is presented in the Table below. ...
Approaching Proof of Concept
The Ampasindava Project has a NI 43-101 Report published for the Resource.
Some 5 stages of metallurgical testwork have been completed and a relatively simple, environmentally responsible heap leach process has resulted in highly acceptable mineral product yields into the leachate material.
The Project will now move to a Proof of Concept phase at the site while further design related study work will continue in order to finalise potential project economic and technical viability.
Harena is a private company and will seek an Initial Placement Offer at the Australian Securities Exchange during the second half of 2023. Subscribe to our email news alerts for details about the upcoming IPO and how to invest."
http://harenaresources.com.au/ampasindava-rare-earths-project/
Looks like Harena has changed its plan, from floating in Oz, to floating in London.
But a lot of preparatory work for a float should have done done already, so hopefully the RTO into CRES will now progress swiftly.
"AMPASINDAVA RARE EARTHS PROJECT
628 mt
DEFINED MINERAL RESOURCES
895 ppm
TOTAL RARE EARTH OXIDES (TREO)
562 kt
TREO - TOTAL CONTAINED METAL
AMPASINDAVA RARE EARTHS PROJECT
PROJECT OVERVIEW
Harena Resources is developing the 75% owned Ampasindava Ionic Clay rare earths deposit in Madagascar. The Ampasindava project is advanced and contains a defined mineral resource of 628 million tonnes at 895 ppm Total Rare Earth Oxides (TREO).
The majority of the project area is low lying with elevations ranging from sea-level to 713 m with the highest elevations found in the northwest of the project area. The most characteristic physiographical feature in the project area is a 6 km wide, circular caldera which corresponds to the southeast part of the Ambohimirahavavy igneous complex.
PROJECT LOCATION
THE MADAGASCAR OPPORTUNITY
The project concession is located in the eastern part of the Ampasindava Peninsula, Antsiranana Province on the northwest coast of Madagascar, approximately 500 km north of Madagascar’s capital city Antananarivo.
The project is located close to significant enabling infrastructure such as semi-industrial ports, an international airport at Nosy-B Island and the large regional town of Ambanja.
PROJECT HIGHLIGHTS
Characterisation of the Ampasindava Deposit
The Ambohimirahavavy igneous complex (Ampasibitika intrusion) in Madagascar hosts an exceptional rare-earth element (REE) bearing ion-adsorption clay (IAC) resource.
The ion-adsorption clays consist of aluminosilicate clay minerals (e.g. kaolinite, illite, smectite) formed through in-situ lateritic weathering of REE-rich host rocks. The Ambohimirahavavy ores are enriched with the Magnet Rare Earths, Neodymium (Nd) and Praseodymium
(Pr) or together NdPr and Dysprosium (Dy) and Terbium (Tb) or together DyTb. These natural magnet rare earth minerals, NdPr and DyTb are highly sought after for use in high specification magnets used in wind turbines, electric vehicles and other more specialised applications for military components. ..."
http://harenaresources.com.au/ampasindava-rare-earths-project/
26th Oct 2023 9:07 am RNS Project Update
Citius Resources Plc (LSE: CRES), the London listed natural resources investment company is pleased to announce that it has entered into a binding Heads of Terms for the acquisition of 100% of the issued shares in Harena Resources Pty Ltd ("Harena") the 75% owner of the Ampasindava Rare Earths Project in Madagascar (the, "Acquisition").
Harena is an Australian domiciled company preparing to develop the 75% owned Ampasindava Rare Earths Project, which will include the mining and processing of Ionic Clay material to extract Rare Earth elements to produce Mixed Rare Earth Carbonate or Mixed Rare Earth Concentrate.
Citius has agreed to terminate its previous agreement with AUC Mining (U) Limited for the acquisition of the Kamalenge Gold Project in the Mubende Gold District, Uganda with immediate effect. The Company will remain suspended pending the publication of a prospectus providing further details on Harena and the Company as enlarged by the Acquisition, or an announcement that the Acquisition or Reverse Take Over (''RTO") is not proceeding.
Should the Acquisition complete, it would constitute an RTO under the Listing Rules and accordingly, the Company would apply for the re-admission of its shares to the Official List and the Main Market of the London Stock Exchange.
Cameron Pearce, Citius Director commented:
"The Citius board looks forward to keeping shareholders informed of further developments in what we believe is a compelling Acquisition in an exciting commodity space, as the global move towards decarbonisation gathers pace.
Citius will be working closely with Harena, which is already in an advanced RTO ready stage, to complete the due diligence and prospectus for the relisting of the company as soon as practicable." ...
https://www.lse.co.uk/rns/CRES/project-update-lxz32owbgm2rxq2.html
I'm afraid not, Goldcrusher.
Resource RTOs in foreign countries tend to take a lot longer than domestic non-resource RTOs.
BRES, Cameron Pearce's Ugandan graphite RTO, was suspended for eleven and a half months before its RTO ... though that's still four months less than CRES's current period of suspension.
CRES's Ugandan gold RTO looks very attractive though, so if it completes it should have been worth the wait.
Thanks Hedgehog100, do you know any time lines for the RTO?
22nd Aug 2023 3:07 pm RNS Annual Results 30 April 2023 & Notice of AGM
Annual Report and Financial Statements for the year ended 30 April 2023
The Board of Citius Resources Plc is pleased to announce its Annual Report and audited financial results for the year ended 30 April 2023.
The Annual General Meeting will be held at 55 Athol Street, Douglas, Isle of Man, IM1 1LA at 10.00 am on 15 September 2023. ...
Chairman Statement
Dear Shareholders,
It is with pleasure that your director presents the 2023 Annual Financial Report of Citius Resources Plc (the "Company").
The year saw the Company continue to pursue settlement of its transaction to acquire AUC Mining (U) Limited, the holder of the Kamalenge Gold Project (the "Acquisition") which is located in the Mubende Gold District in Uganda.
The Acquisition would constitute a Reverse Takeover under the listing rules and accordingly, the Company would apply for the re-admission of its shares to the Official List and Main Market of the London Stock Exchange.
The Kamalenge Gold Project is a highly exciting project given the exploration work to date and indications that it may host a high-grade gold project with the potential for near term production.
Winton Willesee
Non-Executive Chairman
22 August 2023
Strategic Report for the year ended 30 April 2023
The Directors present the Strategic Report of Citius Resources Plc for the year ended 30 April 2023.
Business of the Company
The Company was incorporated on 15 April 2020 as a private company with limited liability under the laws of England and Wales under the Companies Act 2006 with registered number 12557958.
The Company was formed to undertake an acquisition of a target company or business. On 9 June 2022 the Company announced that it has entered into a binding Heads of Terms with regard to the possible acquisition of 100% of the share capital of AUC Mining (U) Limited ("AUC"). ...
The results are set out in the Statements of Comprehensive Income. The total comprehensive loss attributable to the equity holders of the Company for the year was £444,287(2022: £259,694). ...
As at 30 April 2023 the Company's statement of Financial Position shows net assets totalling of £292,877 (2022: £737,163). The Company has minimal liabilities and is considered to have a positive cash position at the report date. ...
Having regard to the Company's existing working capital position and the expected capital to be raised at the time of the acquisition, the Directors are of the opinion that the Company has adequate resources to enable it to continue in existence for a period of at least 12 months from the date of these financial statements. ...
... the proposed RTO of AUC Mining Limited, to which the Company has advanced funds of GBP249,341 ...
https://www.lse.co.uk/rns/CRES/annual-results-30-april-2023-notice-of-agm-4cv9fz7307b2306.html
29th Nov 2022 10:31 am RNS Half-year Report
Interim Financial Statements
for the six month period ended 31 October 2022
The Company is pleased to announce its Interim Results for the six-month period to 31 October 2022. ...
Interim Management Report
Dear shareholder,
I am pleased to present the interim report and accounts for the six-month period to 31 October 2022 for Citius Resources Plc.
The Company was formed for the purpose of acquiring a natural resources asset, in June 2022 the Company agreed terms with the vendors of AUC Mining (U) Limited the holder of the Kamalenge Gold Project (the "Acquisition") which is in the Mubende Gold District in Uganda. The Company is now well progressed in its due diligence and is nearing completion of the transaction. The Kamalenge Gold Project is a highly exciting project given the exploration work to date and indications that it may host a high-grade gold project with the potential for near term production.
The Company is now well positioned to complete the Acquisition which would constitute a Reverse Take Over under the Listing Rules and accordingly, the company would apply for re-admission of its shares to the Official List and the Main Market of the London Stock Exchange.
I would like to thank the board and advisory team for all their hard work over the past six months and we look forward to further updating shareholders and the market in due course.
Cameron PearceChief Executive Officer ...
https://www.lse.co.uk/rns/CRES/half-year-report-tp9hc0ubqhvfyl1.html
The BRES share price has been performing well recently, with good newsflow, moving to over 7.5p today before closing at 6.72p.
This shows that good mining stocks can still perform well in challenging market conditions, and bodes well from CRES's proposed RTO.
CRES shows the excellent gains that can be made from buying a reasonably-valued shell, with good deal prospects, and waiting patiently.
A likelihood of an immediate 50%+ gain if the RTO proceeds, which it should, and a discounted holding in what could be a very exciting and multibagging growth company.
And all it takes for investors is a little research, market timing, and a willingness to buy before the herd.
Though they can be illiquid, with micro market capitalisations, after a RTO the liquidity and markets caps. may be expected to increase markedly.
For those kicking themselves at missing out on the CRES shell opportunity, the stock market is merciful, as it always throws up fresh opportunities.
Two other very attractive shells with CRES-like potential, both with great cash underpinning, are these:-
Aura Renewable Acquisitions (ARA) 9.75p Market cap. £1.024M.
https://www.lse.co.uk/SharePrice.asp?shareprice=ARA&share=Aura-Renew-Acq
More Acquisitions (TMOR) 1.025p Market cap. £1.28M.
https://www.lse.co.uk/SharePrice.asp?shareprice=TMOR&share=More-Acqu
LSE % Gainers Top Lists
EPIC Name %
RGP Ross +13%
Today's top riser is only up 13%, which is a sign of bad market conditions.
So if CRES wasn't suspended today, I think that it should be top.
Though it probably will be at de-suspension, if the RTO goes ahead.
So, suspended for a RTO (reverse takeover), as is standard practice.
And it looks like a good one: a potentially large and high-grade gold project, with significant exploration work already conducted.
Well done to CRES's management, and fingers crossed that the RTO proceeds.
Uganda has said this week that 320,158 tonnes of refined gold could be extracted from its 31 million tonnes of ore.
That equates to about 11.3 billion ounces of gold: with a current in-situ value of about US$20.9 trillion (current gold price US$1,849/ounce):-
"Uganda says exploration results show it has 31Mt of gold ore
8TH JUNE 2022
BY: REUTERS
Uganda on Wednesday said recent exploration surveys have shown it has gold ore deposits of about 31 million tonnes and it wants to attract big investors to develop the sector hitherto dominated by small wildcat miners.
Over the last two years aerial exploration was done across the country followed by geophysical and geochemical surveys and analyses, Solomon Muyita, spokesperson for the Ministry of Energy and Mineral Development, told Reuters.
Muyita said an estimated 320,158 tonnes of refined gold could be extracted from the 31-million tonnes of ore.
Most of the deposits were discovered in Karamoja, a parched sprawling area in the country's northeastern corner on the border with Kenya. Large reserves were also found in eastern, central and western areas of the East African country.
Muyita said Wagagai, a Chinese company, had set up a mine in Busia in eastern Uganda and was expected to start production this year. Wagagai had invested $200-million, he said, and its mine will have a refining unit.
President Yoweri Museveni's government has been seeking to ramp up investment in mining to develop resources like copper, iron ore, gold, cobalt and phosphates.
Parliament early this year enacted a new mining law that, once signed by the president, will pave way for the creation of a state mining company.
The company will compulsorily acquire a 15% stake in every mining operation and investors will be required to sign a production-sharing agreement with the government. Previously investors were given mining production licenses on a first-come, first-served basis."
https://www.miningweekly.com/article/uganda-says-exploration-results-show-it-has-31-mln-tonnes-of-gold-ore-2022-06-08
9th Jun 2022 7:40 am RNS Statement re. Suspension
Proposed Transaction and Suspension of Listing
Citius Resources plc (the "Company" or "Citius"), an investment company listed on the London Stock Exchange, is pleased to announce that it has entered into a binding Heads of Terms with regard to the possible acquisition of 100% of the share capital of AUC Mining (U) Limited ("AUC') to be satisfied by the issue of New Ordinary Shares of the Company ('the Proposed Transaction').
AUC holds the Kamalenge Gold Project in the Mubende Gold District, Uganda. The Project has the potential to be a large and high-grade gold project based on preliminary due diligence of the exploration work completed by the Company and its consultants. AUC have completed extensive work and expenditures on the Project over recent years yielding substantial drilling and exploration data for the Company to advance.
Citius has agreed, subject to further due diligence, to acquire the entire share capital of AUC for total consideration of £2,000,000 (two million pounds), to be satisfied in full by the issue of 43,243,333,242 new shares of the Company at an implied price of £0.04625 per share ("Acquisition"). Citius will also undertake to raise further capital to support the future work programme and for general working capital. The details of the work programme will be finalised during the forthcoming due diligence phase.
Should the Acquisition complete, it would constitute a Reverse Take Over (" RTO ") under the Listing Rules and accordingly, the Company would apply for the re-admission of its shares to the Official List and the Main Market of the London Stock Exchange.
Therefore, at the request of the Company, the FCA has suspended the Company's listing on the standard segment of the Official List and trading on the Main Market of the London Stock Exchange has also been suspended as of 7.30am today, pending the publication of a prospectus providing further detail on AUC and the Company as enlarged by the Acquisition, or an announcement that the Acquisition or RTO is not proceeding. Should the RTO not proceed, then the Company would need to apply for the suspension to be lifted and for trading to be restored.
The Proposed Transaction remains subject to due diligence, completion of the acquisition and re-listing of the enlarged group on the Official List.
Cameron Pearce, Executive Director commented:
"Citius was formed for the purposes of acquiring a natural resources asset and the Board is fortunate, having reviewed several projects, to now be in a position to reach an investment decision, subject to further due diligence. The Kamalenge Gold Project is a highly exciting project given the exploration work to date and indications that it may host a large and high-grade gold project. ... a compelling transaction for shareholders of the Company". ...
https://www.lse.co.uk/rns/CRES/statement-re-suspension-wnqgwbqiqbdoda4.html
CRES IPOed last summer, at 4p per share -
25th Aug 2021 7:00 am RNS Admission and First Day of Dealings
"Citius Resources Plc, an investment company seeking to acquire a company or project in precious and/or base metals, is pleased to announce the admission of its entire issued share capital, being 43,250,000 ordinary shares of £0.005 each ("Ordinary Shares"), to the Official List (by way of a Standard Listing under Chapter 14 of the Listing Rules) and to trading on the London Stock Exchange's Main Market for listed securities (the "Admission"). The Company has raised a total of £1,120,000 since incorporation including £560,000 through a placing of 14,000,000 Ordinary Shares at 4p ("IPO Placing") by Brandon Hill Capital, broker to the Company.
Cameron Pearce, Chief Executive Officer commented:
"The Board of Citius and its advisory team comprise a knowledgeable and experienced group of professionals with the relevant skills and expertise to successfully source, structure and complete acquisitions in the mining sector to deliver upon our strategy to return substantial value to investors. As such we are pleased to be listing upon the Official list of the main market and will provide the market with updates in due course, as we begin to review investment opportunities." ..."
https://www.lse.co.uk/rns/CRES/admission-and-first-day-of-dealings-o9w4trjt8ciqoep.html
CRES's CEO Cameron Pearce was also the head of shell company BRES (Blencowe Resources), which also IPOed at 4p/share.
And he arranged the RTO into BRES of the Orom-Cross Graphite Project, priced at 6p/share, with a placing at the same price, compared to the pre-existing BRES s.p. of 4.5p -
28th Apr 2020 7:00 am RNS Acquisition of the Orom-Cross Graphite Project
https://www.lse.co.uk/rns/BRES/acquisition-of-the-orom-cross-graphite-project-fd11ks8yyg8ic7v.html
BRES then closed on 28th. April 2020 at 8p/share, and within a month had reached nearly 9p.
Potentially this BRES RTO could set a rough 'template' for CRES: as it's the same boss, the same IPO prices, the same target sector, and even the tickers (BRES & CRES) are very similar.
Poor stock market conditions tend to make it harder to IPO, increasing the attractions of the RTO route, and increasing the bargaining power of shells like CRES.
And meanwhile, the valuations of RTO targets for shells tend to be depressed.
So ironically, the s.p.s of shells like CRES can become depressed at the same time as they are in effect becoming more valuable: more capable of cutting a cracking RTO deal on great terms - i.e. a better shell valuation and lower target valuation, and great quality targets.
Which makes a shell like CRES - at a reasonable valuation re. its cash and with great deal prospects - a great place to 'park funds' at the moment.
Many investors may wish to reduce their exposure to shares in companies with trading businesses, but holding cash for months doesn't give any real direct upside - certainly in the short term.
CRES though has both some underpinning, and great potential upside - it could easily multibag from this level on a good deal.
And you don't have to worry about funds being tied up here for a while if you won't be using them anyway.
7th Apr 2022 10:43 am RNS Appointment of Joint Broker
"Citius Resources Plc (LSE: CRES), an investment company seeking to acquire a company or project in precious and/or base metals is pleased to announce the appointment of Shard Capital Partners ("Shard") as joint broker to the Company. As Citius gets closer to an investment decision it is pleased to now have Shard on board as joint broker which represents a strong endorsement for the company's plans moving forward.
Cameron Pearce, Executive Director commented:
"I am delighted to announce the appointment of Shard Capital as Citius' joint-broker, especially as we get closer to our inaugural investment decision which we would expect to provide a further update on in the very near future." ..."
https://www.lse.co.uk/rns/CRES/appointment-of-joint-broker-r4ub7zcsluytzly.html
CRES RTO news looks like it could be very close.
CRES is currently just 3p, market cap. £1.3M., so good RTO news could provide quite an uplift here.
Mr BRES and EML at the helm.
Could get interesting not too many cash shells around anymore
this keeps on going but where will it stop!
Offer Price of 7.25p represents a 19.5 per cent. discount to the unaudited pro forma NAV per share of the Enlarged Group of 9.00p So NAV of 9p... interesting. Watching from a WRN perspective...
Good start ;-)
Terms have been agreed for a reverse takeover of Harworth Estates by Coalfield Resources, which plans to raise £115m through a placing to finance the £150m deal. Coalfield Resources said a deal was now in place with the board of the Pension Protection Fund (PPF) to acquire the 75.1 per cent of Harworth Estates Property Group that it does not already own for £150m. Harworth Estates is one of the largest property and regeneration businesses across the East Midlands, Yorkshire and the North of England, owning and/or managing a portfolio of approximately 27,000 acres across some 200 sites, valued at approximately £298.5m with net assets of about £248.6m as at 31 December 2014. Due to the historic portfolio of land the Harworth Estates Group currently holds, much of which is former colliery sites and associated land, the business has a set of specialist skills in transforming often difficult parcels of brownfield land, which frequently have environmental legacy issues requiring remediation and/or incomplete legal title, into new residential, commercial and low carbon developments. Coalfield Resources said that following completion of the reverse takeover, the enlarged group will be able to access capital on better terms than Harworth Estates Property Group has been able to do in the recent past. As such, an acceleration of existing investment opportunities is expected together with the capture of a greater portion of any uplift in value on each project, while pursuing new growth opportunities, including acquiring new land for redevelopment. The consideration for the acquisition of the 75.1 per cent stake will be satisfied by a combination of the issue of shares equating to about 25 per cent of the enlarged group to the PPF and a payment to the PPF of approximately £97m in cash. On completion of the deal, Coalfield Resources proposes that its name be changed to Harworth Group plc to reflect properly the change to its underlying operations Jonson Cox, chairman of Coalfield Resources said: "Coalfield Resources is delighted to announce this transaction with the Pension Protection Fund. It re-establishes under single ownership the property business of Harworth Estates and we welcome the PPF as a 25 per cent investor. "It will complete the transformation of the company to a specialist brownfield property developer. We will be in a strong position to take full advantage of our proven skills in the property and regeneration markets and to deliver value. I would like to thank our existing and new shareholders for their support in achieving an important milestone for the business." Andy Ward, PwC's senior partner in Sheffield, was the reporting accountant, and Nigel Ward, transaction services partner in Leeds, provided financial due diligence.