Leyshon Resources Limited Termination of Heads of Agreement (9469C)

TIDMLRL

RNS Number : 9469C

Leyshon Resources Limited

23 January 2015

Leyshon Resources Limited

AIM Release

23 January 2015

Termination of Heads of Agreement for Proposed Acquisition and Corporate Update

Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon Resources" or the "Company") refers to its announcement on 20 November 2014 regarding Heads of Agreement for a proposed transaction with International Tungsten Services Limited ("ITS"). The Company wishes to advise that it is no longer pursuing the transaction with ITS due to a number of factors including, declining tungsten prices and the expanding project timetable, which has resulted in the proposed transaction ceasing to meet the Company's financial return objectives.

As previously announced, the Company provided an initial unsecured working capital facility to ITS of US$500,000. This facility was subsequently increased by US$120,000 and the aggregate loan of US$620,000 is due for repayment in accordance with its terms by 26 December 2015.

The Company will continue to actively pursue investment opportunities in the resources sector which are in line with the Company's stated investing policy. The Company's strategic objective is to identify projects that have a clear pathway to production or monetization and can generate high returns to shareholders. This will be achieved by leveraging the in-house expertise and track-record in identifying, acquiring, financing, developing and operating resource projects, and un-locking value. The Company's plan is to identify advanced or brown-field assets which have a high probability of being re-rated in the listed market.

Whilst the overall investment climate in the resources sector continues to be very difficult, asset valuations are currently substantially discounted, which we believe provides an attractive investing opportunity at the bottom of the investment cycle. A number of opportunities are currently being studied and the Company retains a strong cash position with working capital of A$1.6 million. The Company will continue to keep the market informed of any material developments as they occur.

The shares of Leyshon Resources have been suspended from trading on the Australian Securities Exchange ("ASX") since 14 July 2014 and will remain suspended.

On 20 November 2014, the shares of Leyshon Resources were also suspended from trading on the announcement of the proposed transaction with ITS (which constituted a possible reverse takeover). As the Company is an investing company subject to AIM Rule 15, and it has not implemented its investing policy or completed an acquisition which constitutes a reverse takeover under the AIM Rules for Companies within 12 months of becoming as investing company, trading of the Company's shares on the AIM Market will remain suspended pending implementation of its investing policy or completion of an acquisition which constitutes a reverse takeover. In the event that the Company is unable to implement its investing policy or complete an acquisition which constitutes a reverse takeover within six months of this announcement, admission of the Company's shares to trading on the AIM Market will be cancelled in accordance with AIM Rule 41.

The Company envisages the shares will remain suspended on the ASX and AIM Market until such time as the Company completes a transaction and seeks re-compliance for listing on the ASX and re-admission to AIM Market.

For further information please contact:

Leyshon Resources Limited

Corey Nolan - Managing Director

Tel: [phone]

[e-mail]

RFC Ambrian Limited

Samantha Harrison (Nominated Adviser)

Kim Eckhof (Corporate broking)

Tel: [phone]

http://www.leyshonresources.com

This information is provided by RNS

The company news service from the London Stock Exchange

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