Chairman’s Statement in last report12 Nov 2024 11:03
Jim Mellon gave an update on the sale process in the last report on 26th September which is 1.5 months ago. For the benefit of those who keep asking for an update here is an extract:
“ I continue to be impressed by the executive team's dedication to getting our project shovel ready. This has elicited considerable interest in the current sales process, which has been aided by a 35% increase in the gold price since the lows of 2023.
The focus during the 6-month period to 30 June 2024 has been on the sale of the Company's assets in Nicaragua. On 22 November 2022, the Company announced a strategy update and informed the market that it had appointed an advisor to sell its assets. The Board carefully reviewed the Company's options as the Project is "construction ready" with an 18-month construction timeline. Such options included going through a financing and construction phase but, as a single asset, single jurisdiction company without an experienced mine building team and without gold production from other mines, the Board formed the view that this would not be in the Company's best interests, and concluded that it was in the best interests of the Company and all stakeholders to sell the assets of the Company to a gold producer with mine building expertise, thus ensuring a new mine at La India and significant investment in the local area, which will regenerate the local communities. The focus for 2024 is to execute a successful sale of the assets while maintaining a social licence to operate at the fully permitted La India Project.
By way of an update on the sales process as at 26th September 2024 there are currently eight companies under Non-Disclosure Agreements (NDAs), five non-binding offers received and three site visits completed. Although none of the non-binding offers have progressed to firm proposals to date, the Company is in discussions with several gold producers. The Board is optimistic that a sale will be concluded in the near future.
Wholly owned, fully permitted, construction ready gold mines, with a Feasibility Study completed, with potential production of 150,000 oz gold per annum, in major Gold Districts, with the land acquired and a new SAG Mill package purchased are rare and in demand by gold producers replenishing depleting reserves. We are very aware of the value of our assets and will not allow them to go at anything other than a fair price.”
There is not a lot more they can say as a detailed running commentary on current negotiations is not beneficial to the process. It will be done when it’s done, hopefully in the near future according to Jim Mellon who is conducting the sale process. The next thing should be an RNS one morning announcing a deal.
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