AGM Statement
27 Juni 2007 - 12:00PM
UK Regulatory
RNS Number:0865Z
Mincorp Plc
27 June 2007
MINCORP PLC
("the Company")
ANNUAL GENERAL MEETING 27th JUNE 2007
CHAIRMAN'S ADDRESS
Mincorp plc (AIM: MOP) announces that at the Company's AGM to be held at 10am
this morning, the Company's chairman will make the following remarks with regard
to current trading and prospects.
"Ladies & Gentlemen,
Welcome to the second Annual General Meeting of the company for the year ended
31st May 2006.
Unfortunately, this meeting is being held more than 12 months after the end of
financial year. We intend to rectify this situation in the coming year.
DIRECTORS
My name is Reginald Hare. I would like to introduce the Directors: Jocelyn
Arreza, Michael Coleman, Noordin bin Abdullah and Jaafar bin Ahmad.
ISSUE OF NEW SHARES
At the beginning of 2007, the Company was facing a cash crisis with insufficient
funds to operate for the coming year. In January, Coraledge Resources Limited
announced that it had acquired from two major shareholders of Mincorp 29,750,000
shares representing 22.88% of the issued capital of the Company. The acquisition
price was 0.74p.
Following this substantial change in the shareholding of the Company, a group of
approximately 24 interested potential shareholders, including a number of
clients of Credit Suisse, agreed to subscribe for 236,000,000 shares at a price
of 0.74p per share. This was regarded by directors as a fair market price
considering that over 22% of the issued capital of the Company had changed hands
at 0.74p per share. Subsequently, the 236,000,000 of the available shares were
issued and raised #1,746,400. This issue was made directly to new shareholders
and no underwriting fee or commission was paid. As a result, the Company
received the whole of the proceeds of the issue. The Company has greatly
improved its financial condition, which will enable it to become more active in
the acquisition of mining properties and related investments. Prior to the
private placement, three additional directors were appointed to the board.
PT ATPK RESOURCES Tbk, INDONESIA
Since funds became available, the Company has acquired a 5.5% interest in ATPK
Resources, a company listed on the Jakarta Stock Exchange. Our interest in this
company is related to the recent acquisition by ATPK Resources of five
undeveloped coal deposits in Indonesia. This resource, when mining commences,
should transform ATPK into a profitable mining company. ATPK has also recently
acquired several lateritic nickel areas in Sulawesi, Indonesia.
Our initial investment was purchased at an average price of approximately IDR
830 per share. There has recently been a sharp increase in the market price of
ATPK Resources shares to around IDR 2500 per share. As of this date, we have an
unrealised gross trading profit on this investment of approximately #2,000,000.
In May 2007, ATPK Resources announced a one-for-one rights issue of 410,450,000
new shares at a subscription price of IDR 445 a share including one warrant for
every three new shares at a subscription price of IDR 200 exercisable from 7
January 2008 until 5 July 2010. As Mincorp's current holding amounts to
22,750,000 shares, in order to maintain our present 5.5% interest we will need
to subscribe for 22,750,000 new shares. This investment will cost approximately
#562,000. When exercised, the conversion of warrants to shares will cost an
additional #84,000. These figures are approximate and will vary with the
exchange rate.
MT CADIG NICKEL DEPOSIT, PHILIPPINES
Mincorp Asia, Inc subsidiary Bonaventure Mining Corporation is the applicant for
this area of approximately 9,400 hectares covering the whole of the Mt Cadig
deposit. Mincorp Plc holds 40% of the shares in Mincorp Asia, Inc. The claim to
the area is under dispute and the case has gone to the Philippines Supreme
Court. A decision is anticipated before the end of 2007. Our legal advisers are
confident the company will win the case in the higher court.
Mt Cadig is a major nickel laterite deposit of approximately 120 million tons.
Insufficient work has been completed to determine what percentage of the deposit
consists of ore.
NEW WAVERLEY GOLD MINE, WESTERN AUSTRALIA
This gold property is wholly owned by Procnima Exploration Pty Ltd, a subsidiary
of Mincorp Plc. It was acquired by an outright purchase for #86,000. The mine
is located just north of Norseman, which is one of the oldest gold producing
areas in Western Australian. The first gold was discovered in 1894. The field
has been worked continuously since discovery.
The area held by Procnima is structurally similar to the Princess Royal mine,
several kilometres to the south west. In both cases the primary ore structure in
a north westerly trending fault. The displacement on this fault at Princess
Royal is approximately 800 metres while the estimated displacement at New
Waverley is 600 metres. The main target is in the underwall of the fault.
In 2006, Procnima drilled an inclined diamond drill hole to a depth of 500
metres with the objective of penetrating the fault and testing the underwall
position. This hole did not reach its objective due to a steepening of the
fault. A second drill hole will be commenced in July this year, located further
west, and is expected to test the underwall position.
There is also another possibility for discovery of shallow quartz veins similar
to the ones mined in the open cut. These veins in the past yielded 4,500 ounces
of gold from a shallow open cut. To test this prospect we intend to commence a
percussion drilling programme later this year.
The Princess Royal produced over 1,800,000 ounces of gold from quartz veins at
an average grade of approximately 17 Grams/tonne. This is the possible prize at
New Waverley.
FUTURE ACTIVITIES
The company expects to be more active in the mining scene in the coming year.
This will involve raising equity and/or loan funds in the near future. Planning
for this is already underway.
SINGAPORE OFFICE
The management of Mincorp Plc is located overseas. Our head office address is as
follows:
Mincorp Plc,
3 Temasec Avenue,
#34-23 Centennial Tower,
Singapore 039190.
Tel: +65 6549 7898
Fax: +65 6549 7544
CONCLUSION
In conclusion, I wish to thank the directors and staff of the company, as well
as our consultants, advisors and also Nabarro Wells, our NOMAD, for their
services in the past year.
I also thank shareholders for their support.
REGINALD HARE
Chairman"
Enquiries:
Mincorp plc Reg Hare (Chairman) 00632 682 1063
Nabarro Wells Hugh Oram 0207 710 7400
This information is provided by RNS
The company news service from the London Stock Exchange
END
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