LONDON (Alliance News) - Premier Gold Resources PLC Friday said it has asked for its shares to be suspended from trading on AIM whilst it clarifies its financial position as it proposes a new investing policy and a change of name after disposing of its main asset to repay a loan.
The gold exploration and development company entered into a settlement deed with Trivedi Capital Partner LP to dispose of its wholly-owned subsidiary, Central Asia Resource Ltd, to Trivedi in order to fully repay an outstanding loan under the convertible loan agreement it entered in July 2013.
Central Asia Resource holds an 80% stake in Premier Asia, making it the "ultimate owner" of the Cholokkaindy exploration licence in the Kyrgyz Republic which is held by Premier Asia and which has been independently valued as having no worth.
Premier Gold entered into the convertible loan agreement with Trivedi in July 2013, and secured it against all the shares of Central Asia Resource and following the transaction, Premier will not owe any money to Trivedi.
However, all of the above proposals need to be approved by Premier Gold shareholders as the company is disposing of over 75% of its assets, which requires the company to come up with a new investing policy, which it would have 12 months to implement.
The investing policy proposed includes re-organising Premier Gold's share capital by consolidating 25,000 shares into one consolidation share, which in turn would then be subdivided into 100 shares and one new deferred share.
Premier Gold said it had conditionally raised GBP1.1 million through the issue of 35.3 million new shares to advance the new investing policy of the company, which will be called Prospex Oil and Gas PLC if approved by shareholders.
The new investing policy will remain focused on natural resources and the energy sector, and may include applying for new exploration licenses or investing in existing licenses with a primary geographical focus on Europe, the company said.
Shareholders will vote on the proposals from the company on April 14.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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