LONDON (Alliance News) - Leed Resources PLC Wednesday said it will write-down the full value of its GBP957,000 investment in Manas Coal LLC, which holds a coal exploration licence in the Kyrgyz Republic.
The AIM-listed investment company, focused on natural resource sector opportunities, said in 2012 that Manas was not able to complete a key scoping study towards a larger exploration and work programme due to a lack of resources.
The company also said that Manas was informed that another party held a licence in its Kok Kiya site, after the space was apparently granted to more than one party.
While Manas has pursued its claim for the restoration of the full licence area through the Kyrgyz courts, it has been unable to obtain a favourable judgement through a number of hearings.
Leed Resources said it has become concerned about the lack of progress at Manas and after holding discussions with a number of key figures in the company, with a view to securing additional funding for the project. As a result, it has decided to make a full provision for impairment against the investment in its forthcoming results for the year ended June 30, 2013.
The company said it will keep the matter under review in the event that further resources in the future become available to Manas.
Leed Resources shares were down 22% to 0.07 pence, making it the second-largest AIM faller Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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