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Application for Provisional Liquidation of Leboam

18 Dec 2018 07:00

RNS Number : 7512K
Cradle Arc PLC
18 December 2018
 

Cradle Arc plc / EPIC: CRA.L / Market: AIM / Sector: Mining

 

 

18 December 2018

Cradle Arc plc

("Cradle Arc" or the "Company")

Application for Provisional Liquidation of Leboam Holdings

 

Cradle Arc (AIM: CRA), the African focused base and precious metals exploration and production company, announces that the Company has made an application to the Botswana High Court for its 60 per cent. owned subsidiary, Leboam Holdings (Pty) Limited ("Leboam"), the holding company of the Mowana Copper Mine in Botswana ("Mowana" or the "Mine"), to be placed into provisional liquidation as parallel talks on an alternative funding arrangement continue. The application is set to be heard on Wednesday, 19 December 2018.

This follows the Company's announcement on 6 December 2018, where it was revealed that whilst Fujax advanced the sum of US$1m to Leboam pending completion of the extended facility, Fujax has now informed the Company that it will not permit any further drawdowns unless Leboam agrees to vary the previously agreed, but not legally binding, terms and grant security over its interest in the Mowana Copper Mine in Botswana for all outstanding historical and new debt owed to Fujax. The current security holders have not agreed to this request.

The Company has been notified that Fujax and Leboam's 40 per cent. shareholder have made a separate application to the Botswana High Court, to be heard today, 18 December 2018, for judgement to consider placing Leboam under judicial management and in the alternative, that is after the Court refuses to grant judicial management order, to place it under, provisional liquidation.

Cradle Arc is opposing the application for judicial management on the basis that Fujax has neither provided a viable alternative financing plan for Leboam, nor a credible business plan for the Mowana mine.

Although operations at the mine have been suspended, significant remedial action has been performed on the process plant, the water provision from its wellfield and various other infrastructural elements of the mine. Rental agreements for mining equipment have been cancelled, and equipment removed from site pending settlement of outstanding and overdue creditor balances.

 

Kevin van Wouw, CEO of Cradle Arc, commented:

"While it is unfortunate that we have had to take this step, provisional liquidation as opposed to final liquidation is by no means the end for Mowana, but rather provides the Company an opportunity to continue talks, along with the provisional liquidator, for a sustainable funding solution at the mine.

 

 

 

**ENDS**

 

For further information on the Company, please visit www.cradlearc.com or contact:

 

Cradle Arc plc

Kevin van Wouw

Mark Jones

Tel: +44 (0)20 7637 5216

 

Strand Hanson Limited

James Spinney

Matthew Chandler

James Dance

 

Tel: +44 (0)20 7409 3494

 

SP Angel Corporate Finance LLP

Ewan Leggat

John Meyer

 

 

Tel: +44 (0)20 3470 0470

Tavistock Communications Limited

Charles Vivian

Gareth Tredway

Tel: +44 (0)20 7920 3150

M: +44 (0)79 7729 7903

M: +44 (0)77 8597 4264

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCLLFIAFSLDLIT
12
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3rd Jan 20199:15 amRNSDirectorate Change
20th Dec 201810:15 amRNSProvisional Judicial Management Order of Leboam
18th Dec 20183:11 pmRNSHolding(s) in Company
18th Dec 20187:00 amRNSApplication for Provisional Liquidation of Leboam
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31st Oct 20187:12 amRNSPlacing to raise £396,000 gross
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15th Oct 20187:00 amRNSExtension of Thakadu and Makala Mining Licence
11th Oct 20187:00 amRNSConversion of Loan Notes & Total Voting Rights
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25th Sep 20187:00 amRNSOperational Update
14th Sep 20187:00 amRNSProspecting Rights Renewed Along Strike of Mowana
13th Sep 20185:32 pmRNSResults of General Meeting
12th Sep 20185:00 pmRNSResignation of joint broker
12th Sep 201812:33 pmRNSHolding(s) in Company
11th Sep 201811:51 amRNSHolding(s) in Company
10th Sep 20187:00 amRNSJoint Venture at Kossanto West Gold Project
5th Sep 20189:00 amRNSDirectorate Changes
4th Sep 20182:32 pmRNSHolding(s) in Company
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23rd Aug 20187:00 amRNSNotice of General Meeting
3rd Aug 201810:23 amRNSAdditional Warrant Exercise
1st Aug 20187:01 amRNSAppointment of Joint Broker
1st Aug 20187:00 amRNSConvertible Notes Redemption and Issue of Equity
4th Jul 20187:00 amRNSUpdate on non-core assets
28th Jun 20182:41 pmRNSResults of AGM and Warrant Issue
28th Jun 20187:05 amRNSFull year results for year ended 31 December 2017
26th Jun 20187:04 amRNSOperational Update and 2018 Production Guidance
18th Jun 20181:00 pmRNSUpdate on Management Change and Warrant Issue
5th Jun 20187:00 amRNSNotice of AGM and Update re Warrant Issue
31st May 20184:40 pmRNSSecond Price Monitoring Extn
31st May 20184:35 pmRNSPrice Monitoring Extension
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31st May 20182:00 pmRNSPrice Monitoring Extension
31st May 201811:05 amRNSSecond Price Monitoring Extn
31st May 201811:00 amRNSPrice Monitoring Extension
31st May 20187:00 amRNSMaiden Ore Reserve for Mowana Supports DMS Upgrade
12

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