China Africa Resources PLC Change of Adviser (1809V)

TIDMCAF

RNS Number : 1809V

China Africa Resources PLC

26 January 2017

China Africa Resources PLC

26 January 2017

China Africa Resources plc

("China Africa" or the "Company")

Change of Adviser

China Africa Resources plc (LON:CAF) the London Stock Exchange AIM listed natural resource exploration and development company is pleased to advise that PKF Littlejohn LLP has been appointed as the Company's auditors.

BDO LLP, the outgoing auditors, have confirmed that in accordance with Section 519 of the Companies Act 2006 there are no circumstances connected with their ceasing to hold office that they consider should be brought to the attention of the Company's members or creditors.

China Africa Resources plc has effected this change in order to further reduce the Company's ongoing costs.

For further information on the Company, visit: http://www.chinaafricares.com/.

 
 China Africa Resources PLC       T: [phone] 
  Paul Johnson, Chief Executive 
  Officer 
 SPARK Advisory Partners -        T: [phone] 
  Nominated Adviser                555 
  Sean Wyndham-Quin 
  Neil Baldwin                     www.sparkadvisorypartners.com 
 SI Capital Limited - Joint       T: [phone] 
  Broker                           500 
  Nick Emerson 
  Andy Thacker 
 Beaufort Securities Limited      T: [phone] 
  - Joint Broker                   8300 
  Elliot Hance 
 

China Africa Resources Investing Policy:

Under the AIM Rules for Companies, CAF is required to complete an acquisition or acquisitions that constitutes a reverse takeover within six months of becoming an AIM Rule 15 Cash Shell or it will face suspension from trading on AIM. The Directors intend to apply the investing policy set out below in seeking an acquisition or acquisitions that will constitute a reverse takeover but there can be no certainty that they will be able to do this in the specified time frame.

The Board proposes to invest in and/or acquire companies and/or projects within the natural resource sector but with a particular interest in opportunities in the energy metal and minerals sector and with a key focus on opportunities in respect of uranium, lithium, cobalt, copper and coal. Each commodity has a specific relevance to the Energy space in terms of power generation, storage and distribution.

The Board considers that, as evidenced by the financial support provided by the new investors for the proposals outlined there is a strong demand for energy metal and mineral opportunities on London's AIM.

The Board will not be limited to a specific geographic focus. In selecting investment opportunities, the Board will focus on businesses, assets and/or projects that are available at attractive valuations and hold opportunities to unlock embedded value or where, through efficient and focused work, there is the prospect of adding considerable value to each project, for the benefit of shareholders.

Where appropriate, the new Board may seek to invest in businesses where it may influence the business at a board level, add their expertise to the management of the business, and utilise their industry relationships and access to finance.

The Company's interests in a proposed investment and/or acquisition may range from a minority position to full ownership and may comprise one investment or multiple investments. The proposed investments may be in quoted or unquoted companies; be made by direct acquisitions or farm-ins; and may be in companies, partnerships, earn-in joint ventures, debt or other loan structures, joint ventures or direct or indirect interests in assets or projects. The new Board may focus on investments where intrinsic value can be achieved from the restructuring of investments or merger of complementary businesses.

The Board expects that investments will typically be held for the medium to long term, although short term disposal of assets cannot be ruled out if there is an opportunity to generate an attractive return for Shareholders. The new Board will place no minimum or maximum limit on the length of time that any investment may be held.

The Board will conduct initial due diligence appraisals of potential businesses or projects and, where they believe further investigation is warranted, intend to appoint appropriately qualified persons to assist.

The Board believes it has a broad range of contacts through which it is likely to identify various opportunities which may prove suitable. The new Board believes its expertise will enable it to determine quickly which opportunities could be viable and so progress quickly to formal due diligence.

The Company will not have a separate investment manager. The Board proposes to carry out a comprehensive and thorough project review process in which all material aspects of a potential project or business will be subject to rigorous due diligence, as appropriate. Due to the nature of the sector in which the Company is focused the Company expects a focus on capital returns over the medium to long term. Should opportunities arise for an early cash return to investors, this will be considered by the Board.

It is emphasised that there is no certainty that the Company will be able to secure an acquisition or Reverse Takeover as set out above.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 26, 2017 03:04 ET (08:04 GMT)