NORTH RIVER RESOURCES
LON:NRRP | 13.5p | US$4.7m
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.
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.