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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
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
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.
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
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.
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
Thanks Hedgehog100, do you know any time lines for the RTO?
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.