The newly appointed board members at Ortac Resources Ltd (LON:OTC) have wasted little time in setting out the direction they want the company to go in, after passing all resolutions at the company’s annual meeting on 8th September.
Chairman Nick von Schirnding and new non-exec Brian McMaster both bring extensive mining and restructuring experience to the board and have decided that Ortac should focus exclusively on its African exploration mining assets.
This will see Ortac progressing its core gold and copper assets in the Democratic Republic of Congo and Zambia.
Ortac now has significant investments and board representation in respect of two operating companies, Casa Mining Ltd and Zamsort Limited.
The board believes the core investments in Casa and Zamsort present the best near term opportunity for Ortac to create value for shareholders, and that this strategy will ensure a new, focused, value accretive approach going forward.
Zambian copper opportunity
It's taken a little longer to develope than expected, but the upside at the Kalaba copper cobalt project in Zambia looks sizeable. This was a project that for years was mired in a bureaucratic log-jam from which it has only recently broken free. That explains why such a promising resource wasn't worked up further during the last boom, and why Ortac was able to build up to a 14% stake on good terms at a time when funding was more scarce.
The plan now is to build a demonstration plant to initiate small-scale production and generate a certain amount of cashflow, before scaling up.
Gold upside in the Democratic Republic of Congo
Ortac owns 45% of Casa Mining Ltd, which owns the Akyanga gold deposit in the Democratic Republic of Congo. This has a well-established resource of 1.05 mln ounces of gold at 2.27 grams per tonne within a wider lower-grade envelope of 1.57 mln ounces at 1.65 grams per tonne.
Exploration work remains ongoing.
A wide range of options now under consideration for other assets
The Company continues to explore a number of strategic options with respect to its Kremnica gold project in Slovakia and will now seek to divest its interest in Andiamo, an Eritrean-focussed investment company.
In Slovakia, the Company is in constructive discussions with a number of parties, both local and international and in the interim, will keep associated expenditures to a minimum.
Chairman pleased to be talking about "clear and simple direction"
"We are pleased to be able to set out the parameters of a clear and simple direction for Ortac's future,” said chairman Nick von Schirnding.
“This strategic focus is underpinned by two potentially highly-value accretive exploration assets in the DRC and Zambia. We believe this is the right direction for us, in order to generate near term value for the Company's investors and sets a clear path to long term sustainable growth. Both of these projects have been substantially de-risked and with near term catalysts are at exciting times in their development."