news7 Dec 2010 07:24
Ovoca Gold PLC
7 December 2010
Ovoca Gold plc ("Ovoca" or the "Company")
Operational and corporate update
Highlights:
· Extension of license for Rassoshinskaya
· US$55.4 million of Cash and Securities, pro forma as at end 3 December 2010
· Share buy back court authorities set to be in place by year-end
License Extension
Ovoca is pleased to announce that the Rassoshinskaya exploration license has been extended for two years to 15 February 2013. The Rassoshinskaya license is in the Northeastern part of the Magadan Region, Russia and contains the Olcha and Podgorniy projects. The newly extended right to explore was granted by Rosnedra, the Russian State regulator.
Cash and Equity Investments
Currently, Ovoca has circa 1.3 million Polymetal common shares worth US$24.8 million as at close of business on 3 December 2010. Additionally, the Company has approximately US$9.1 million in cash and US$21.5 million in a diversified portfolio of gold mining equities. In total, the pro forma total cash and securities position of Ovoca as of 3 December 2010 is US$55.4 million.
Buy Back
The final documentation needed from the Irish courts is in the process of being filed and it is expected Ovoca can start to execute its share buy back for up to 10% of the Company's issued share capital by the end of the year.
Tim McCutcheon, CEO, comments: "The extension of the Rassoshinskaya license by Rosnedra was granted on the basis of the substantial exploration potential in the license area. Ovoca has more time to further explore the Olcha and Podgorniy projects and intends to convert those projects to exploitation status as soon as possible subject to satisfactory exploration results. It also demonstrates Ovoca's positive experience working in the Russian gold sector.
Our cash and equivalents position is very strong, and our strategy to give shareholder exposure to the gold price before we have our own gold production has been performing well. Our per-share cash and investments value is approximately GBP 0.40, and so we are still trading at a discount to cash and investments."