LONDON (Alliance News) - Sable Mining Africa Ltd, which operates in West Africa and Zimbabwe, on Wednesday said it plans to seek shareholder approval to cancel the trading of its shares on AIM from October 17, as its nominated adviser resigned.
"In recent months, the long-term effects of factors including political instability, public health emergencies, the impact of the depressed bulk commodities markets, unpredictability of legal systems, together with unsubstantiated and irresponsible allegations and adverse press speculation, have caused significant harm to the company's long-term prospects as a mineral exploration and development business," Sable Mining said.
In June, Sable Mining said Chief Executive Officer Andrew Groves "strongly refuted" any allegation that he has acted unlawfully in relation to Sable's business affairs in Liberia or anywhere else.
In the June statement, Sable Mining said Groves confirmed to the board of directors that he has "not personally received any indictment by the grand jury in Liberia and that to date, no evidence has been presented or served to support the allegations against him, as first raised by Global Witness", an environmental and human rights advocacy group
On Wednesday, Sable Mining thinks it is in the best interest of the company and its shareholders to seek the cancellation of its trading on AIM, citing the considerable cost maintaining the listing, as well as the time and legal and regulatory burden associated with it.
It suggested that, as a consequence of the depressed market capitalisation, its continued trading on AIM no longer provides it with the benefits typically associated with a listing. Sable, whose shares were suspended from trading Wednesday afternoon, has a market capitalisation of GBP2.3 million.
Sable hopes, following cancellation, to realise value from its existing asset base.
"The board will consider a wide range of opportunities, but given the prevailing market conditions it is not anticipated that the company will look to invest in or acquire any interest in mineral exploration, extraction or development businesses or assets; instead, at this stage the world economic cycle the board believes that a strong focus on short-term revenue generation investments will offer better value to shareholders than long-term, capital intensive projects," Sable said.
The company will seek approval to delist from shareholders at an extraordinary general meeting, to be held October 7.
Non-Executive Chairman Jim Cochrane has, in light of this, opted not to put himself forward for re-election at the company's annual general meeting Wednesday, and has stepped down with immediate effect.
Additionally, Cantor Fitzgerald has resigned as Sable's nominated adviser with immediate effect. If it fails to appoint a replacement within one month, under AIM rules, its admission to AIM will be cancelled, regardless of the outcome of the EGM. Sable said it is "highly unlikely" a replacement nomad will be appointed.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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