Asa Resource Share Discussion Threads

[shrewdinvest] 15/8/2017 10:42

Someone remind the idiot timw3 that this is the ASA website

[timw3] 14/8/2017 22:56

Heads up Seller cleared at AAOG... $800m spud in 4 weeks!!

AAOG without doubt in play now seller out with that 1m sell printed after hours.

Fincapp valuations:

Mengo hit 750bopd - £70m MCAP - £1
Djeno hit 10k bopd - £750m MCAP - £10

So £11 potential vs 28p share price

Current market cap is only £10m once cash is stripped out.

£10m cap vs $1billion potential...

No brainer at these levels.

60p+ target at least prior to spud in 4 weeks

[juju44] 14/8/2017 17:05

They will probably extend the offer date

[asmodeus] 14/8/2017 16:56

Well the deadline for acceptance of the offer is tomorrow, and I haven't, so no need for further suggestions.

[exbroker] 12/8/2017 16:13

The Danes have been there for a while, the holdings were flushed out by the requirements to state the beneficial owners on the Rule 8.3 announcements.

[timgw] 11/8/2017 18:54

<<Thecynical1 - So the Danes are going for it instead?>>

A fraction under 6% is a good start. I get a feeling that there are other shareholders with Danish connections that could combine to make a viable bid and then run the business properly.......

[mr macgregor] 11/8/2017 11:55

There has been plenty of evidence of Chinese corruption on AIM over the years. Plenty shouldn't have been allowed to list in the first place but in the city the grabbing hands grab all they can as Dave Gahan said. This company is somewhat different as the Chinese levered themselves in later with the help of lumbering oaf Mpinga and solicitor Dearing. I hope you guys make money on this after all that's happened.

[wstirrup] 11/8/2017 11:48

BUT, on a lighter note, these litigations and putting the company into administration, will hopefully flush out the financial shenanigans that undoubtedly have been going on... We might also get a good idea of the REAL value of the company and its holdings too...

I have reached the sad conclusion, that some news was witheld to allow the price to drift, so that they could grab the assets on the cheap. And THAT should be criminal if it isn't already... (Conflict of interest?)

I have a similar situation with another Chinese managed company in my portfolio, I am beginning to reach the conclusion that any business that is owned by, or managed by Chinese is likely to be maladministered and will stay well clear of any future IPOs on London Exchanges.

W.

[wstirrup] 11/8/2017 11:35

I was on Yahoo Finance the other day, and did a search for ASA...(I forgot to put .L at the end) What came back was ASA Gold and its price was over 11.50... (can't remember the exact price) but I nearly had heart failure... Again.. ;¬))

Shame its wasn't a real quote... THAT would have been a nice end to the week... :¬)

W.

[thecynical1] 10/8/2017 13:27

So the Danes are going for it instead?

[thecynical1] 10/8/2017 12:01

Danes.....

[skidaddle] 10/8/2017 09:39

I think what everyone wants is a bit of clarity. We may have to wait a while for the administrators to give us that.

Meanwhile gold and nickel getting stronger by the day!

[mr macgregor] 10/8/2017 07:55

It tickled me seeing Kenneth Musanhi had joined the litigation bunfight. He's the guy given 15% of FR in the dodgy deal made by Mpinga, which should be grounds for counter-suing the greedy so and so. What a farce this is. Step forward Mr. Dearing, the new Brian Rix.

18th May 2012 "the 15% interest in Freda Rebecca will be purchased by Mr. Kenneth Musanhi for US$405,000, being the price agreed with Mr. Musanhi in 2005 at the time Mwana acquired Freda Rebecca."

[asmodeus] 09/8/2017 20:00

I'm still not clear whether the advice of the-better-informed is for us to accept the offer now, or to hold on?

[shrewdinvest] 09/8/2017 18:10

Asa Resources Plc faces another lawsuit over an indigenisation agreement entered into by its subsidiary Freda Rebecca Gold Mine in 2012 but is confident it will win.

Asa, formerly Mwana Africa Plc, has already been slapped with a $20 million lawsuit by another indigenous group, the Zindico Consortium over its attempts to change an agreement to sell 26 percent of Freda, the country’s single largest gold mine.

According to a source close to developments, the Bindura Community Trust has approached Manyangadze Legal Practioners who are also representing Zindico Consortium to file a $10 million lawsuit against Asa Resources.

“Bindura Community Trust has approached its legal advisers with an intention to sue Asa Resource Group’s Chinese shareholders who reneged from a signed indigenisation agreement.”

Asa signed an agreement in 2012 to sell 10 percent of the gold mine shares to the community share ownership trust, the Bindura Community Trust, under the current Indigenisation and Economic Empowerment Act.

However, the sources say that the new Chinese shareholders (China International Mining Group Corporation) who booted out founding director Kalaa Mpinga, were reviewing the agreements with the intention of approaching the Government with a new indigenous plan to replace the previously signed agreements between the Trust and the mining group.

China International Mining Group Corporation came on board in 2012 after underwriting a $21 million investment to restart Asa’s Bindura Nickel Corporation.

Asa Resources Group is also parent company to Zimbabwe Stock Exchange- listed resources group Bindura Nickel Corporation.

In an update to analysts and media recently, the company the confirmed that they were before the courts on the Zindico agreement but only said that the case lacked merit.

The group was confident of a positive outcome.

[shrewdinvest] 09/8/2017 18:06

FREDA Rebeca’s controlling London-listed shareholder, Asa Resources Plc, has run into a fresh shareholder dispute after a 15 percent owner in its Bindura gold mining unit accused the Chinese controlled group of violating minority rules on share disposal.

Suncraft Enterprises, a minority shareholder in Freda Rebecca Gold Mine, is suing Asa Resource over its intention to dispose of shares in the mining concern without regard to the minority shareholder’s pre-emptive rights. The application was made to the High Court of Zimbabwe.

Asa recently received a cash offer for its shareholding from Rich Pro Investments, a deal likely going also to affect Freda as a subsidiary. The breach was allegedly contradictory to Freda’s Articles of Association and a shareholder’s agreement concluded with Suncraft.

London junior market listed Asa is being accused of making decisions on behalf of Freda Rebecca, which has its own board of directors. Asa also controls Zimbabwe Stock Exchange Bindura Nickel Corporation.

Suncraft Enterprises, which is owned by Member of Parliament for Bindura North, Kenneth Musanhi, has given notice of its intention to apply to the High Court under section 196 of the Companies Act to seek relief in terms of Section 198 the same law, against Asa Resource, an 85 percent shareholder in Freda Rebecca.

According to court papers, case number HC6828 the application details to how Asa, directly and indirectly through Freda, unfairly exercised (positive and negative) control of Suncraft, as a minority shareholder, in a manner that was unfair and prejudicial.

“The relief sort is premised on Asa and Freda Rebecca Holdings’ intention to dispose of shares without regard to the applicant’s pre-emptive rights and to the Articles of Association of the company and a shareholder’s agreement concluded with Suncraft. The application cites the doctrine of freedom of contract and enforcement of these provisions whereby the defaulting party is deemed to have irrevocably offered its shareholding to the non-defaulting party in this case, the applicant,” said Suncraft in the court papers.

Suncraft alleged that major decisions relating to the Freda Rebecca Gold Mine were made on directives of the Asa board of directors without reference or recourse to Freda’s board of directors. In the court papers, Suncraft also made sensational allegations from a special investigation report showing how over $22 million in shareholder loans, was externalised without board approval. The application alleged that the shareholder loans arise from agreements entered when Freda acquired Ashanti Goldfields Zimbabwe Limited. Repayment of the said loans entitled the applicant to 15 percent of the amount thus repaid and this was not upheld.

Suncraft cited how the probe also uncovered a host of administrative irregularities and malpractices, including bribery, corruption, transfer pricing and externalisation of funds amongst other things. This affected operations of the gold mining company and prejudiced applicant, the country and fiscus at large through unpaid taxes.

Suncraft said it formally gave notice in writing of the breaches stretching as far back as 2013 and most recently in April this year.

[jacks13] 09/8/2017 14:13

Will you expand on that Tim? What is your advisor suggesting will happen if you delay accepting? By what route will the Offer get to be improved upon? What is the nature of the Bindura shareholders' complaint?

[timgw] 09/8/2017 12:07

I have 300k shares at 4p. Reliable sources tell me it is best to sit this one out as a worst case will be more than 2p however it pans out. I agree but DYOR.

Apparently shareholders in Bindura now have a dog in the fight too and are taking legal action against ASA directly.

[skidaddle] 09/8/2017 12:00

The big question is Nings holdings. Can they be counted in the uptake percentage or are they now in limbo pending investigations into Nings activities whilst CEO of the company.

[jacks13] 09/8/2017 10:42

It's only trading in the shares that is suspended. The Offer process is clearly ongoing. We should get the uptake percentage next Wednesday, probably with an announcement of an extension of the Offer period.

[thecynical1] 09/8/2017 06:42

So is the offer still valid? Can shareholders accept or is that in limbo as well? Confused...

[jacks13] 08/8/2017 14:23

It is logical that they won't/can't comment on the offer. At least pending the administrator's report detailing their conclusions.

[juju44] 08/8/2017 14:15

So what happens now