Asa Resource Share Discussion Threads

[jacks13] 02/8/2017 20:12

From this position I don’t see that there is anything to gain from digging in and refusing to accept the offer. The latest I have is that RPI have around 40% of the shares in issue, either in their hands or committed. If they get to 50% they can take control. At that point they could extend and maybe improve the offer (if they felt it necessary) to attempt to get to 90%.

If they fail to get 50% they may walk away, selling as they go. If at that point the shares are released from suspension and trading resumes does anyone seriously think that they will trade anywhere near to 2p? If so I’d like to hear the rationale for that case.

If RPI manage to achieve a controlling interest, but fail to achieve a knock-out 90%, the shares may remain listed, at least for a while, but the new owners could take the company private. Then what price the shares?

[plasybryn] 02/8/2017 20:00

posiga08: your question - this is confirmation of their holding under the Takeover Code. Anyone with more than 1% is obliged to declare.

[resourceful] 02/8/2017 17:19

are you all mad
if rich pro do not complete we will get nothing .atall
it will never come back from suspension
the assets will be sold by the administrator to whoever buys
they will not pursuer monies in China

[cobbydog] 02/8/2017 17:15

hope you guys can help me . i have quite a large holding in these shares some from back when it was MWANA and am sitting on a big loss. my question is if i accept my brokers offer to sell am i guaranteed to get my money ? I really don't want to sell as 16k is a big loss for me to stand but i am fearful that if i hold i will loose all i have invested over the years

[gfrae] 02/8/2017 11:57

Redtrend and Plasbryn, interesting posts. It does seem extraordinary that no attempt was made to retrieve the funds stolen by Ning. I can not understand how he was able to retain his shares and voting rights in the company whose funds he stole.

[plasybryn] 02/8/2017 11:25

Great post on LSERNS - administratorI see an administrator has been appointed. This will hep protect our assets being taken for a song. I happen to know Duff & Phelps because I worked with Mark Skelton on another project. He is a top-notch operator and knows African mining. Unlike your usual corporate re-structuring consultants where they take enormous fees, I know Mark will be pragmatic and operate in the interests of creditors or shareholders. I'm going to call Mark to understand his strategy and future plans for the group. At least the Zimbabweans must be happy as they will be left to get on with making money at the mine level unencumbered. If this puts a stop to the unwelcome bid of 2.1p from RichPro then i.m.o. this should work out well in the long run. My hunch is that Ning and Hailiang (RichPro) were probably going to split up and sell our assets making a small fortune at shareholders expense - why can't Duff & Phelps do the same us or we simply trade out of the situation? The board has acted very responsibly, especially if Ning was involved - they made a right mess of Zim assets. As a shareholder, I'm pleased to see that the administrator will undertake an investigation into the prior affairs of the Company - there is unfinished business and we need to know the root of what went wrong.

[petefurlepa] 02/8/2017 09:31

Would the Administrators be able to demand the results of the copper exploration in the Congo, anyone any idea ?

[redtrend] 02/8/2017 09:28

Ning is no doubt behind the Hailiang buyout in some capacity, so of course he has accepted the offer. The Chinese are clubbing together to take it out.

The liquidity issue appears to be related to the Zimbabwe Government (Bank of Zimbabwe) not paying ASA though, forcing ASA to suspend shares as clear from the suspension RNS:

"Cash within Asa has been constrained by the currency restrictions imposed by the Reserve Bank of Zimbabwe.

These restrictions have worsened since April 2017 following the Company's announcement that internal investigations had revealed significant funds had been remitted from operating subsidiaries in Zimbabwe and not properly accounted for. As a direct consequence, the Company has not been able to receive adequate funding from its operating subsidiaries and, accordingly, is struggling to meet its ongoing liabilities"


This could no doubt be specific to ASA and intentional by the Zimbabwe Government after the fraud by Ning, which is fraud against both ASA Shareholders and the Zimbabwe Government for tax evasion. Why would they continue to allow funds to leave the country when the issue has not been resolved and ASA have been silent on a strategy for recovering the funds or prosecuting Ning? With Ning in China I have no doubt it is nigh on impossible to take him to task if he stays there, but a RNS should have been issued stating what steps have been taken - international warrant for his arrest? Legal proceedings in lieu of Ning not showing, civil proceedings for confiscation of assets outside of China to make ASA and Zimbabwe Government whole again etc etc. We don't even know if the proper authorities have been notified.

Unless the company win back the Zimbabwe Government's trust (which should have been at the top of their agenda), even if the administration proceedings are a masterclass at outmanoeuvring Ning, the Government and bondholders could have the last laugh. It's small conciliation that this conclusion would also mean Ning screwed himself out of ten of millions for sake of only a few million.

The last time the Chinese were found out for fraud in Zimbabwe a few years back running diamond mines, the Government confiscated the mines.

If the shares were not suspended I would buy a few just to show up at the AGM in Sept... sure to be very interesting.

I really hope it works out for shareholders still invested... with the exception of Ning and his fraudster chums of course

[gfrae] 02/8/2017 08:43

A further hypothesis is that Richpro's 2.05 bid was never intended to succeed and that they hoped that their bid would send the shares over the offer price enabling them and other associates to dump shares,in a company they knew was on the brink of bankruptcy after the theft by Ning ?
It is noticeable that Ning had accepted the bid, so he must have been contacted and spoken to by a person connected with the bid.
Why hasn't Ning and his collaborators been arrested ? Or did the company turn a blind eye to his thieving ?

[postiga08] 01/8/2017 20:41

What's that last RNS with the 22%ish shares all about? Those are the ones I never understand :(

[plasybryn] 01/8/2017 19:30

There's no denial here from me ex broker.The business continues to operate.The directors have time now on their side.They are back in control & have the power of the Administrator to ensure they can use the law to unravel the hidden problems. They can now ensure that the value, we all know is there (that's why we bought shares isn't it?) can be realised.Niall Henry has c. 30m shares & I'm sure he isn't going to let shareholders be taken to the cleaners.It looks like we will all need patience but I really think we can rest easy whilst this is now sorted out without the danger of a predator taking us out on the cheap. With the price of gold & nickle continuing to harden, our assets continue to increase in value.

[exbroker] 01/8/2017 18:39

Denial is a strong emotion as it saves you having to look at your mistakes, I own millions of these and have lost a 6 figure sum but its BUST!! Shareholders will get jack. I do hope I am wrong!

[gfrae] 01/8/2017 18:15

Something appears to have gone wrong with Ning/Dearing plan. Administrators being appointed is not good for them. In the event of the assets of the company being less than the liabilities then the company will fall into the hands of it's creditors.
Who are the bondholders ?
Have Ning and his mates been outmanouvered ?
Is Mpinga a bondholder I wonder ?
Incidentally isn't one of the directors the senior partner of one of South Africa's largest accountants ? I suppose he didn't notice any thefts or other dodgy activity ?

[apfindley] 01/8/2017 17:47

Let's hope you guys are right, and this is a game to checkmate ning. If so, and they prove wrongdoing, they could take his shares into treasury.... Now that would be interesting...

[plasybryn] 01/8/2017 17:45

I wonder if Ning is enjoying his G&T tonight. We Brits are very resourceful!

[skidaddle] 01/8/2017 17:43

Meanwhile the mining continues and the price of gold and nickel carry on up.

[casabella2] 01/8/2017 17:37

Totally agree ,it looks like ASA have played a blinder first by suspending the shares and now the administators.As you say it has stopped Ning and his crooks in their tracks.

[plasybryn] 01/8/2017 17:33

I do have faith. In this game of chess this seems like a very astute move which looks like it has snookered the aggressor. It appears that they have sought very good advice as to how to protect the Co's position & help them gain access to information that was being barred to them. As has been said it also gives them time.I think it will have taken everyone by surprise and at first read causes alarm. But thinking it through it is pretty clear what a clever move this is. At least that is how I see it. Time will tell.

[skidaddle] 01/8/2017 17:27

Ning needs to talk to the administrators who now control any movement of shares including his.

[juju44] 01/8/2017 17:23

i admire your faith in the competence of the board. Hope you are right but I would be surprised

[skidaddle] 01/8/2017 17:21

"It should be noted that at present the administrators will not consent to a transfer of shares in the Company during the course of the administration. If this changes shareholders will be updated accordingly. "

I think they mean Ning's holding in particular. Note todays form 8.3 above.

[skidaddle] 01/8/2017 17:14

I agree Plasbbryn.

Administrators can move money about more freely than the management can and free from corrupting influences.

Gives more time for a white knight to appear as well.

[plasybryn] 01/8/2017 17:05

Looks like this could be stroke of genius.Our Board is back in control.Sounds like it may take sometime to resolve but I can only assume they see this course of action leading to the best result for all concerned.I have faith they know what they are doing. Interesting.

[apfindley] 01/8/2017 17:03

Oh dear. Forget the good news, this is now suspended and with the administrators "pending clarification of its financial position"So the Chinese guy raping the bank accounts seems to have done some serious damage. Big hole in the finances they can't cover..