Hunter Resources PLC Update on the Pampamali Joint Venture & Suspension (5458O)

TIDMHUN

RNS Number : 5458O

Hunter Resources PLC

08 November 2016

8 November 2016

Hunter Resources plc

("Hunter" or the "Company")

(AIM: HUN)

Update on the Pampamali Joint Venture and Suspension

The board of directors of the Company (the "Board") has continued its attempts to reach a conclusion to the dispute regarding the Company's Pampamali joint venture project, details of which have previously been announced. To date these have not proved to be successful. The Board believes it is unlikely to achieve this in order to fulfil the Conditions, as defined in the Company's announcement of 25 February 2016 (the "Announcement") within the six months of the Company's ordinary shares having been suspended from trading on AIM. The Board therefore anticipates that the admission to trading of its ordinary shares on AIM will be cancelled on 6 January 2017, as outlined in the announcement of 5 July 2016, the day the suspension commenced.

The Board is extremely disappointed that its extensive and best efforts to resolve this matter with the Vendor have not yet been sucessful, despite all the commercial terms having been agreed and accepted previously by the Vendor. The Board believes that the Vendor has been unreasonably delaying completion of an agreement and the transfer of the tenements at Pampamali to HOLDCO for his own benefit. The Board is considering its options and legal action against the Vendor due to his obstructive failure to fulfil his obligations to the Company.

The Board has been actively investigating a number of new projects and is now focussing on an exploration project in East Africa. Any transaction involving this project will not be completed before trading in the Company's ordinary shares is cancelled on AIM so the transaction would involve a new admission of the Company's shares to trading on AIM as soon as possible thereafter .

The Board will provide a further update to shareholders as appropriate.

(All definitions are as per the Announcement unless otherwise specified)

For further information, please contact:

 
Hunter Resources plc       Allenby Capital Limited 
 Simon Hunt                 (Nominated Adviser and 
 (Chairman)                 Broker) 
 [phone]           John Depasquale/Nick Harriss/Nick 
 www.hunter-resources.com   Naylor 
                            [phone] 
                            www.allenbycapital.com 
-------------------------  ---------------------------------- 
 

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

END

UPDBRBRTMBJMBPF

(END) Dow Jones Newswires

November 08, 2016 02:00 ET (07:00 GMT)