ASA Resource Group PLC Anonymous allegations: Freda Rebecca (4362B)

TIDMASA

RNS Number : 4362B

ASA Resource Group PLC

04 April 2017

Asa Resource Group plc

("Asa Resource", "the Group" or "the Company")

Anonymous allegations: Freda Rebecca

The Directors of Asa Resource have received certain anonymous allegations relating to the operations at Freda Rebecca Gold Mine in Zimbabwe, in which the Group has an 85% interest. The allegations refer to certain aspects of the financial management at Freda Rebecca.

The Company's directors believe these allegations to be completely mischievous and their origins appear to have certain similarities to the previously notified lawsuit served on Freda Rebecca in January 2017. The Company's directors strongly suspect that certain disgruntled former employees may be at the root of some of the allegations.

The Board believes these new allegations to be unsubstantiated and designed to distract further from the ongoing restructuring to improve the efficiency and profitability of its Zimbabwean operations.

The Board has unanimously agreed to initiate a review of these allegations led by the Group Legal Advisor, Barry Dearing, the findings of which will be reported to the Group's independent non-executive directors, none of whom have been associated with the allegations.

The alleged matters are not believed to have had any impact upon the continuing operations at Freda Rebecca and the enquiry will be complete in a matter of weeks.

Dr Scott Morrison, senior Non-Executive Director said: "We take our corporate governance duties very seriously and we stand by the executive's efforts to drive through efficiency measures of its subsidiaries for the benefit of all stakeholders. We regret if difficult retrenchment decisions need to be made, but the executive must take every effort to ensure our mines are profitable. Any reorganisation takes time and there are inevitably and regrettably casualties along the way."

CONTACT

For more information please visit http://www.asaukplc.com/ or contact us below:

London

Asa Resource Group plc.

One Fleet Place, London EC4M 7W

Ian B Dearing, Group General Counsel and Company Secretary

Niall Henry, non-Executive Director (Investor Relations)

[e-mail]

Hong Kong

Yim Kwan, Finance Director

Asa Resource Group plc.

Units 509-510, Level 5, Core E, Cyberport 3, 100 Cyberport Road, Hong Kong

[e-mail]

Nominated Adviser and Joint Broker

SP Angel Corporate Finance LLP

Prince Frederick House, 35-39 Maddox Street, London W1S 2PP

John Mackay, Jeff Keating, Caroline Rowe

Tel: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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April 04, 2017 02:00 ET (06:00 GMT)