Proposed Disposal of The Borrowdale Gates Hotel

    RNS Number : 8093A
  Crucial Plan plc
  06 August 2008
   

    Crucial Plan Plc

    ("Crucial Plan" or the "Company") 

    Proposed Disposal of The Borrowdale Gates Hotel 

    Crucial Plan announces that it has entered into a conditional agreement whereby the Company will dispose of its only assets, The
Borrowdale Gates Hotel, together with fixtures and fittings, to Colin and Joy Yvonne Harrison ("the "Disposal"), subject to the approval of
shareholders at an extraordinary general meeting of the Company ("EGM"), for a consideration of £1,700,000 in cash (the "Consideration"). 

    It is anticipated that a circular will be dispatched to shareholders by 15 August 2008 to convene an EGM (the "Circular"). Upon approval
of the Disposal by shareholders, the Company will have divested all of its trading business activities and, pursuant to the AIM Rules for
Companies ("AIM Rules"), will be treated as an investing company. The Circular will contain the information required by the AIM Rules and
will include details of the Company's proposed investing strategy (the "Investing Strategy") which will also be subject to the approval of
shareholders at the EGM.

    Under the AIM Rules, the Company will then have to make an acquisition or acquisitions which constitute a reverse takeover or otherwise
implement the Investing Strategy approved at the EGM to the satisfaction of the London Stock Exchange within twelve months of having
received the consent of shareholders.

    The Borrowdale Gates Hotel

    The Borrowdale Gates Hotel (the "Hotel") is the only asset owned by Crucial Plan. The Hotel is located outside the ancient hamlet of
Grange-in-Borrowdale in the Lake District. It has 29 rooms and is set within 3 acres of grounds.

    During the year ended 30 April 2007, the Hotel recorded an audited turnover of £938,000 with a loss before interest and tax of £46,000.
The carrying value of the Hotel and the fixtures and fittings in the balance sheet at 31 October 2007 was £1,829,000. 

The full Consideration will be used by the Company to repay bank borrowings of £1,300,000 and certain other creditors.


    Investing Strategy

    The Investing Strategy to be proposed at the EGM will be for the Company to look to acquire a trading company involved primarily in the
minerals, precious metals and resources sector which will be capable of significant organic growth.  

    Acquisition targets will be subject to the scrutiny of the existing board comprising John Liwosz, Mike Neville and Rafael Scolari, all
of whom have experience in these sectors.

    Further, and in addition, in reviewing investment opportunities the board will take guidance from market recognised competent persons
("Competent Persons") who are expert in particular and specific sectors. Further relevant legal and financial due diligence will be carried
out by suitably qualified advisers to determine the efficacy, feasibility and risks associated with any potential acquisition.

    If the Investing Strategy is not approved at the EGM, the board will proceed with a voluntary liquidation of the Company.

    The Company is also in discussions with regards to additional sources of funding and further details will be announced, as appropriate.

    A further announcement providing details of the EGM, Disposal and Investing Strategy will be made in due course.

    For further information, please contact:

 John Liwosz     Crucial Plan plc     07720 032484

 David Youngman  WH Ireland Limited  0161 832 2174



This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCSSSFMMSASEEA