Proactive investorsLogo Proactive Investors UK Website

Search field

1 year chart

digital-look imported chart image

1 day chart

digital-look imported chart image
Epic & Msn data
Epic LRL
Time: 16:30:01
Mid Price: 8.13
Change Today: 0.00
Change % Today: 0.00
Fifty Two Week High: 9.50
Fifty Two Week Low: 3.00
Market Capital: 17.73
Period & price data
Period Price
Now: 8.13
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: General Mining - Gold
Epic: LRL
News: Latest news
Web Site: Leyshon Resources
Other Articles: 22-09-200917-09-200930-04-2009

Leyshon Resources

Leyshon Resources has a proud history as one of Australia’s most financially successful gold mining companies having produced over 2.7 million ounces from its Mt Leyshon Gold Mine in Queensland and distributed over A$300 million dollars to its shareholders over its 15 year life. Today Leyshon has divested its Australian mining and exploration interests and is focused on the  Zheng Guang project in Heilongjiang, northeast China.  Zheng Guang has estimated the resource of 1.21 million ounces of gold, 94,000 tonnes of zinc and 3.72 million ounces of silver.

The company forecasts annual revenues of 90 mln usd from the project at current metal prices, and EBITDA of 54 mln usd on cash operating costs of some 155 usd per ounce.
Tuesday, September 22, 2009

Leyshon Resources Stock Surges Following Agreed Sale of Zheng Guang Project

company news image

Leyshon Resources (AIM: LRL, ASX:LRL) has announced the conditional agreement on the long awaited divestment of its Chinese Zheng Guang Project. Trading in Leyshon resumed today following the update, this morning’s trading in London saw Leyshon Resources surge over 60% immediately after the news with its shares reaching 9 pence.

Today’s deal sees Leyshon’s Joint Venture company ‘Black Dragon Mining’ sell its total interest in the Zheng Guang project to the Heilongjiang Heilong Mining Company Limited (Heilong). Heilong Mining is the wholly owned subsidiary of China Metals Pty Limited.

Under the agreement, the joint venture will receive US$34 million in return for Black Dragon’s 70% stake in Zheng Guang, Heilong Mining will also assume Black Dragon's liabilities currently estimated to be US$1.5m. Heilong Mining is also obligated to make further royalty payments to the joint venture in the future which are estimated to be US$3m. All liabilities between the Company and related entities have been settled as part of the transaction.


The proceeds from the sale have been placed in escrow pending the timely completion of transaction related approvals. Transfer of ownership by the Company of its 70% interest in Black Dragon will only take place once all funds have been received.


The transaction is subject to Leyshon shareholder approval. A ‘notice of meeting’ is currently being prepared by the board which will include full details of the proposed transaction and the Company's proposed investing policy following the disposal.


Following completion of the proposed transaction, Leyshon will have no liabilities, cash and receivables of $47 million (Which equates to £29m and A$54m) equivalent to 13 pence per share or 24 cents per share.


In his accompanying statement Leyshon Managing Director, Paul Atherley commented on the company’s future development in Asia once its divestments are complete, Mr Atrherley stated;


“Following completion of the proposed sale we will have cash reserves in excess of US$44 million which will enable us to draw on our six years' experience in China and focus on acquiring and developing projects located in those countries and commodities which are of interest to Chinese groups for either offtake, partnership or sale.”

NewsNow icon AddThis Feed Button
Register here to be notified of future Leyshon Resources articles.

Other Leyshon Resources articles

More articles ►

Other Leyshon Resources news

More news ►

Investors interested in Leyshon Resources recently viewed


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.