Proactive Investors - Run By Investors For Investors

In the news: North River Resources & Antrim Energy

In the news: North River Resources & Antrim Energy

NORTH RIVER RESOURCES
LON:NRRP | 13.5p | US$4.7m
Company Update
North River has announced an update regarding its ongoing Mining Licence application, and the appointment of three new directors two the board of wholly-owned Namibian company NLZM, holder of the Namib project, with relevant in-country/industry experience.
As previously announced, the company had submitted a formal proposal to the Ministry of Mines and Energy in April 2016, seeking to address the government’s objectives of local ownership, local participation, and CSR. As of July, the government has informed North River that it continues to review the process, with no fixed time frame for a response as yet having been provided.
The new directors appointed to the board are Asser Kapere, Ratonda Katjivikua, and Francois du Plessis. Asser Kapere is currently Chairman and founder of the non-profit Erongo Development Foundation, and previously has served in several senior political positions and offices in Namibia, including in the Cabinet as Deputy Minister for Works, Transport and Communication from 2002 to 2004 and then Chairman of the National Council of Namibia from December 2004 to 2015.
Ratonda Katjivikua was HR Manager and then Corporate Relations Manager for Langer Heinrich Uranium in Namibia from October 2006 to December 2015. Francois du Plessis is a member of the management team of Greenstone Capital, which acts as the investment adviser to cornerstone investor Greenstone Resources. A solicitor, Mr du Plessis has over 11 years’ mining sector experience, and was involved in the formation of Zanaga Iron Ore and Ncondezi Energy.
COMMENT: Securing two directors to the NLZM board with relevant in-country experience, including Asser Kapere as Chairman, should represent a positive step as the company looks to propel the project towards Mining Licence acquisition and development decision. We highlight that improvement to both zinc and lead prices, up 26% and 12% over the past 3-moths respectively, serve to enhance project economics, whilst the company is aiming to grow the resource base with a view to extending the mine life and bolster the value proposition.

ANTRIM ENERGY
CVE:AEN | C$0.04 | US$5.7m
2Q16 Financial Results
Antrim has released its financial results for the 3-month period ending June 2016. Operating cashflow for the quarter stood at (US$0.6m), leaving a working capital surplus at the end of the period of US$8.6m. On August 4 2016, post-period end, the company announced that it would seek shareholder approval at its annual and special Shareholder meeting to authorise the voluntary dissolution of the corporation. This comes after an extensive appraisal and due diligence exercise across the junior E&P space failed to result in the successful conclusion of a transaction that the company believed would represent a favourable value proposition to shareholders, given the continuing volatility across the sector.
Whilst the company has been looking to secure a strategic partner for its 100% owned Irish licence FEL 1/13, the lack of assurance that such a transaction could be concluded in a timely manner led to the company recognising a US$1.3m impairment charge on the licence, reducing its carrying value as of 30 June 2016 to nil.
In order for dissolution to proceed, it must be approved by way of a special resolution by at least 2/3 of votes cast by shareholders present in person or represented by proxy at the meeting. In addition, a further resolution for the cancellation of the company’s shares on AIM must be approved by at least 75% of shareholder votes cast. Should these resolutions be passed, the company anticipates cancellation of its shares on the AIM market to occur from 7am on 9 September 2016. Dissolution of the corporation would provide shareholders with a return of capital currently estimated at C$0.05 per common share (based on an aggregate equity value of US$7.15m, assuming a December 2016 distribution date, and a CAD/USD forex rate of 0.77). If a return of capital of C$0.05/share is achieved, this will represent a ~80% premium over the 3-month average TSX-V daily closing price prior to announcement.

This content has been approved under section 21(1) of the FMSA 2000 by RFC Ambrian Limited ("RFC Ambrian") for communication only to eligible counterparties and professional clients as those terms are defined by the rules of Financial Conduct Authority. The contents are not directed at retail clients as RFC Ambrian does not provide investment advisory services to retail clients.  RFC Ambrian publishes this document as non-independent research which is a marketing communication under the Conduct of Business rules. It has not been prepared in accordance with the regulatory rules relating to independent research, nor is it subject to the prohibition on dealing ahead of the dissemination of investment research. It does not constitute a personal recommendation and does not constitute an offer or a solicitation to buy or sell any security. Neither RFC Ambrian nor any of its directors, officers, employees or agents shall have any liability, howsoever arising, for any error or incompleteness of fact or opinion in it or lack of care in its preparation or publication; provided that this shall not exclude liability to the extent that this is impermissible under the law relating to financial services. All statements and opinions are made as of the date on the face of this document and are not held out as applicable thereafter. This document is intended for distribution only in those jurisdictions where RFC Ambrian is permitted to distribute its research. In particular, it is not intended for distribution in and is not directed as persons in the United States.  On the date of this document, RFC Ambrian, RFC Ambrian's holding company, persons connected with it and their respective directors may have a long or short position in any of the investments mentioned in this document.
RFC Ambrian is a member of the London Stock Exchange and is regulated and authorised by the Financial Conduct Authority. RFC Ambrian is registered in England and Wales no. 4236075. Its registered office is at Level 5, Condor House, 10 St Paul’s Churchyard, London EC4M 8AL.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use